Skip to comments.This Is What Gets Defunded If The Treasury Has To Prioritize Payments
Posted on 07/25/2011 8:11:00 AM PDT by SeekAndFind
It's been assumed -- but never confirmed -- that if we hit the debt ceiling, that The Treasury could prioritize payments, continuing to make bond coupon payments and entitlements, while shutting off other spending.
The Bipartisan Policy Center has put together a presentation (.pdf) on the debt ceiling, and what prioritization would look like (via Stone Street Advisors).
These two charts show it all.
(Excerpt) Read more at businessinsider.com ...
This thing is total nonsensical spin.
Why would you fund “defense vendor payments” but not fund military active pay? That is beyond ridiculous—why make defense vendor payments if you don’t have a military to use the stuff the vendors provide?
Also, I agree with others that Federal unemployment benefits are essentially unconstitutional (well, MORE unconstitutional than many other unconstitutional expenditures) and can, and should be shifted back to the states to deal with.
So right there, you can take $43.5 billion off of these morons’ laughable “can’t fund” list. (not fund the Justice department?—not fund the Federal courts?—uh, right, that will work . . .)
172.7 billion add 5.8 billion for military and vets...bringing the total up to 178.5 billion...you still have 21.5 billion left. Our monthly revenues are 200 billion...military and vets can easily be paid with that 200 billion...[however, I wouldn’t pay unemployment benefits...]
Approx $30b savings right there.
There is a real problem with employment. Many people who have used all their benefits have now been living even tougher lives. Most are unable to find work. That is why the rel U-6 unemployment rate is so high. around 18% That means twice as many people as stated are out of work. Most are working UNDER THE TABLE if hey can, others simply are completely lost.
Remember many of these people are over 40 and 50 and can not find work, many have a spouse that works and have had to scale back their lifestyles, sometimes by losing their homes. More than four million homes have been foreclosed on since 2008. They also can not exactly take a job paying less money in another state if their spouse is making money locally. Are they to move away from the family. Can they make enough money to justify daycare and childcare costs?
The era of Obama is one of incredible pain for many people.
That being said UE benefits should be pushed back to 26 weeks. After six months we have to force the issue.
Those that are working are often forced to do more work for less money. Outside of the government worker, most people are not in the pink. Yet, most levels of government continue to pay MASSIVE benefits and salaries to their employees.
It is a very simple process. ALL government programs MUST be trimmed back. 40% of all cabinet level departments MUST BE SHUTTERRED! All other Departments, INCLUDING THE MILLITARY, MUST be cut 10%. That is real cuts! That would be if you got $10 this year, you get $9 next. If that means we leave the DMZ in Korea, so be it. They gave us Kia & LG, they can now provide for their own defense. If that means we have to pull 75% of our troops out of Europe, so be it, they are NOW required to protect themselves. The Military AND EVERY OTHER GOVRNMENT PROGRAM THAT SURVIVES, can find 10% waste in their system.
Government workers at all levels constantly yammer on about how they can make more money in the private sector. Now is their time to prove it.
This is all that is left. Unless we require the idiots on Capital Hill and the White House to live within their means, they never will. This is the opportunity of a lifetime. We must not let them put off the problem one more time. Rant off!
Anybody making $800 and paying Federal and State INCOME taxes is a certified idiot. Most people making that kind of money have already filled out enough exemptions to bring their paycheck taxes down to zero (illegals do it big time).
The only 'taxes' they pay aren't really even taxes, per se; they're commonly called 'payroll' taxes but are actually OASD, FICA and Medicare payments.
Lastly, I'll say this: Heard on a commercial from Andrew Young to families of fouror more making less than $40K per year - "you can get EITC up to $4000! Just file!" "if you didn't file last year, file retroactively! up to three years! That's $12,000!"
I wish we could eliminate the welfare state entirely, bgut the votes just aren't there to do it. It is going to take generations to undo what has been done since FDR and LBJ.
Yes it's no coincidence that every street corner in the 'hood sprouts at least one "fast tax" outfit from Jan to April.
I fail to see what this table tells us, since it is speculative and anyone can make up a completely different table (as freepers are now in the process of doing). I find it meaningless. Or am I missing something?
Um, the military has lots of weapons, nukes even.
Unemployed have what?
Failing to pay the legions has resulted in more than one change of government in history.
You are right. There is not the political will to cut the Federal government’s scope of work as it has expanded into a socialist monster. And it is not just welfare for the poor - it is welfare to feed the causes and careers of the socialist elite and internationalists which is even more ravishing to the well being of the country than is the socialism for the poor.
That is why I say this “deficit reduction” game is nonsense. They are not going to be able to maintain the socialist monster they have created and there is no political will to change it.
“I wish I could get out of the city but I just cant afford it. Im sure Im not alone.”
I believe the day is soon coming when that, in retrospect, will look like a mistaken order of priorities.
But in this case you’re talking about the possibility of not only cutting unemployment benefits (believe me, I don’t think this will happen) and/or cutting veteran and active military pay as well.
If the military isn’t being paid, I doubt they’ll take up arms against the rioters, thus leaving the local LEOs and SWAT teams to quell the rioters.
Remember that unemployment insurance is supposed to last a certain amount of time (a few months, I believe). Anyone under the original limit of benefits should not be cut off, IMO.
I think you are making an error here.
Social Security is a retirement Ponzi scheme started years ago based upon unrealistic retirement expectations. It was expanded to include disability.
I am in favor of any plan which uniformly decreases the impact of Social Security on our economy. I am not in favor of any change which justifies MORE intrusion into our lives by the federal government, as would be the case with a "disability only" change to Social Security.
There is no need to change Social Security any more than it has already been changed. Just put it on an elimination track and forget it. Let the individual states decide what they want to do about disability or anything else which should be none of the federal government's business.
I'm willing to forego any percentage of my Social Security check as long as every recipient is reduced by the same percentage. I am not willing to surrender to the federal government the opportunity to increase its ability to redistribute wealth.
As we can plainly see from what is going on all over Europe. But the liberals deliberately ignore what is happening in Europe like it isn't really happening, as though the rest of us are all stupid and can't see it.
I don’t think this takes into account the 45-50 billion already in the treasury.
You’re right -
I misread the data.
The $4.5 Trillion was the projected budget.
Sorry for goof-up.
I don't have the details, but think Depart. of Commerce; Depart. of Interior; Depart. of Energy; HHS; FAA; Homeland Security; Federal Transportation Authority; etc. etc. What would happen to this country if each of these agencies (and the others targeted in that table like Dept. of Education) were shuttered? Pretty much: nothing. How much good have these agencies produced in their decades long histories? Pretty much: zero.
Rather than cut them to zero immediately, why not suggest a 5 year transition to operating (in 5 years) at 20% of today's run rate... Plan your priorities accordingly -- all marginal programs get cut and eliminate over that 5 year period to allow for a reasonable transition.
Just a thought.
On the pay now in full list replace Defense venders payments and unemployment payments with Active duty military pay and veterans affairs programs . Save 38.9 billion
Eliminate totally dept of education, dept. of labor, and dept. of energy save another 25 billion.
Now divide whats left of the money proportionally based on what their percentage was of the budget among everyone not yet paid and send out checks.
Obviously if the proposed plan was used the unemployed would not riot and the military might.
BTW: Why are military vendors funded but food/nutrition services are not? Priorities?