Government Contractors Brace for Shutdown (Obama may use SS tax revenues to pay shutdown costs)

The Wall Street Journal ^ | 2011-04-04 | Elizabeth Williamson

[rabscuttle385]

U.S. businesses are bracing for layoffs and disruptions along their supply chains if the federal government shuts down later this week because of an impasse over the federal budget.

(snip)

Especially hard hit are small and midsized businesses that rely on steady flows of revenue from federal contracts to provide a wide array of products and services such as information technology consulting, building construction and maintenance, or food service at national parks.

(snip)

Should the government close, the Treasury could provide a several-hundred billion dollar cushion by borrowing from Social Security, federal pensions and other funds, says Gary Hufbauer, a former Treasury official who is senior fellow at the Peterson Institute for International Economics in Washington.

[sportutegrl]

Why do you have to ‘pay’ for a shutdown? Are we going to be allowed to stop paying taxes? Somehow I doubt that’s the case.

[WOBBLY BOB]

The Association of Ancient Repugnant People will run cover for Barry.

[Gaffer]

What a dumb ass...he just cut the revenues from 6.2% to 4.2%.....betcha he got a V-8 moment there recently!....bwaaaahaaahaaaahhahaaaaaa! SS isn't even collecting enough to pay out to the seniors they owe it to NOW, let alone later....... I have been remarking about this for several years here but it bears repeating. The single largest stash of rather-liquid assets in this country is the retirement mega-stash. The 401Ks, the retirement accounts, etc. They've noticed it publicly since Clinton's early days and have recently held forums in his administration lusting after it.

He will move to grab them when the shit hits the fan. It appears that his empty-suited, organizer facade is going to come crashing down around him, maybe even before 2012, way too early for the re-election milestone he needs to clear.

[Liberty Valance]

Just shut down Goldman Sachs, GM, Fannie & Freddie.

[savedbygrace]

Twice borrowed, that’s a not-so-clever trick. Funds from SS have already been borrowed, by Congress.

[Pollster1]

If the communist thug in our White House doesn’t have the legal authority to spend our children’s money, then he doesn’t have the legal authority to spend that money. Spending “different” money doesn’t make it legal. I am disgusted beyond words at Obama’s actual performance in office.

[fhayek]

You are no doubt correct. A recent mantra that has been circulating among liberal commentators (in response to tight budgets in Wisconsin and Ohio), is that there we have ‘plenty of money’ in this country to cover budget gaps. The private retirement funds would be the logical place to raid.

[UCANSEE2]

IRONY.

The SHUTDOWN costs will exceed the normal OPERATING COSTS.

[Varsity Flight]

*****...”Maybe he will take your savings in banks or credit unions. “ *****

Oh how the “Exempt Ones” are just itching for implementing Vampire-Care on the backs of everyone else for just that.

[RetiredTexasVet]

It makes no difference if the Treasury could find money laying around. All monies must be appropriated (tagged, labeled, etc.) before they can be spent by government agencies. Money can only be spent for what it has been appropriated for.

[KTM rider]

he federal budget is an etherial esoteric mass of overspending debt

the annual budget and deficit is in the TRILLIONS

some pragmatic politicians attempt to cut about 30 billion , which is about .01% of the budget

the feds (executive branch) responds by cutting social services....

(ouch! )

this is merely a tantrum , an act of federal terrorism designed to get an emotional response from the public making them want to give up and surrender more taxes list of cuts

!. lay off smoky bear ( close national parks)

2 turn the old folks out in the street ( social security closed)

3 cut off school lunch funding

screw you Washington DC , you bloated monster, get back to the constitution and the prescribed limited powers and knock off the idiotic insane war games

[DannyTN]

I thought those funds were already in vested in Treasuries. In otherwords, they've already been borrowed.

So what are they talking about? Are they talking about borrowing new SSA tax receipts? Or against future tax receipts?

[DannyTN]

"I thought only the House of Reps. was the only ones authorized to spend money...not the POTUS"

He still has authorizations that the democrats gave him when they had control.

What he doesn't have is the ability to increase the debt limit. That's the Republicans Ace card at this point. That's his constraining factor. And apparently borrowing from the SSA and Medicare funds must not fall under that debt limit.

[silverleaf]

Sounds like he’s gonna furlough the feds and use their self-funded pension funds (tsp) to use as fun money

It has happened in the past

[silverleaf]

As Sen Alan Simspon said tonight:

Gold is the money of Kings
Silver is the money of gentlemen
Barter is the money of peasants
But debt is the money of slaves

I’d say us taxpayers who can hope someday to barter are among the lucky

[silverleaf]

social security has been raided

any senior who doesn’t understand that is a kool aid drinking liberal old fart and probably an AARP member to boot.... a group united by their love for discount travel and a magazine with advice on how to have sex after 60

(credits to Sen Alan Simpson)

[newnhdad]

should read “will use SS to keep the money flowing to the unions”...

[GeronL]

Obviously he means borrowing from China and adding it to the debt. Isnt that always what they do?