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This Is What Gets Defunded If The Treasury Has To Prioritize Payments
Business Insider ^ | 07/25/2011 | Joe Weisenthal

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 ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: debtceiling; funding; treasury
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1 posted on 07/25/2011 8:11:04 AM PDT by SeekAndFind
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To: SeekAndFind


2 posted on 07/25/2011 8:12:00 AM PDT by SeekAndFind (u)
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To: SeekAndFind

The active duty military is going to get paid no matter what.


3 posted on 07/25/2011 8:13:14 AM PDT by jpl
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To: SeekAndFind

The longer one waits, the more cuts that will be needed to be done.


4 posted on 07/25/2011 8:14:02 AM PDT by Jonty30
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To: SeekAndFind

Looked at the charts, I say pay the vets and drop unemployment bennies.


5 posted on 07/25/2011 8:14:43 AM PDT by Grunthor (Faster than the speed of smell.)
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To: SeekAndFind
Just about everything that gets funded is ALL that should be government funded anyway.

Shut it down!

The active duty pay is all that would be a concern.

6 posted on 07/25/2011 8:14:59 AM PDT by EGPWS (Trust in God, question everyone else)
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To: SeekAndFind

How about everybody on unemployment has two weeks to find a job. No more benefits after that. I think we will all be surprised how many of these people are working the system.


7 posted on 07/25/2011 8:16:03 AM PDT by mosaicwolf (Strength and Honor)
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To: SeekAndFind
$52.8 billion.....OTHER

Figures that that would be the greatest expenditure.

8 posted on 07/25/2011 8:16:18 AM PDT by EGPWS (Trust in God, question everyone else)
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To: SeekAndFind

I think this shows just how out of control spending has got. We can’t afford this. It was bound to fall in on it’s self once the economy started to stall.

Paul is looking for his payment and peter just filed chapter 7.


9 posted on 07/25/2011 8:16:51 AM PDT by cableguymn
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To: SeekAndFind

The list of things to be cut is very instructive as to where we should focus on cutting and eliminating. After the initial military pay and veterans services, the rest is where we should be trimming or cut out completely.


10 posted on 07/25/2011 8:17:07 AM PDT by ilgipper (political rhetoric is no substitute for competence (Thomas Sowell))
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To: Grunthor
I say pay the vets and drop unemployment bennies.

Instant rioting! Then again, the regime could then claim that unemployment is at 0%!

11 posted on 07/25/2011 8:17:07 AM PDT by rarestia (It's time to water the Tree of Liberty.)
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To: SeekAndFind

Unemployment insurance should be off the priority list.
Military pay MUST be put on the list. It is a Constitutional issue.


12 posted on 07/25/2011 8:17:16 AM PDT by SatinDoll (NO FOREIGN NATIONALS AS OUR PRESIDENT!)
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To: SeekAndFind

Eliminate “Other.”

Permanently


13 posted on 07/25/2011 8:18:47 AM PDT by Peter W. Kessler (Dirt is for racing... asphalt is for getting there.)
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To: jpl

Why not cut 0bamao-care?

Why not eliminate the Department of mis-Education? A larger nest of malfeasance has never existed. Hundreds of billions in funding since its founding in 1977 by discredited Malaise President Carter, and the quality of American Education has been plummeting exponentially since.

How about the EPA? Their fixation on the discredited Global Warming hoax and their desire to tax us into penury while regulating us into the first century should be enough to signal their loss of any semblance of usefulness.

Hey, how about defunding the president’s parties and vacation junkets costing hundreds of millions?


14 posted on 07/25/2011 8:19:07 AM PDT by Westbrook
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To: rarestia

“Instant rioting!”

They’d simply have to get over it. It was supposed to be a 26 week program and it’s turned into welfare. Time to dial it back.


15 posted on 07/25/2011 8:20:04 AM PDT by Grunthor (Faster than the speed of smell.)
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To: SeekAndFind
I see IRS refunds on the second chart. Isn't that interesting?

The IRS confiscates money from the guy making $800 a week all year long knowing he isn't going to owe on April 15, but they don't want to give it back.

I think a major effort to repeal employer withholding would open a lot of eyes in this country.


"The people are responsible for the character of their government. If that body be ignorant, reckless, and corrupt, it is because the people tolerate ignorance, recklessness, and corruption. If it be intelligent, brave, and pure, it is because the people demand these high qualities to represent them..." - James Garfield

16 posted on 07/25/2011 8:21:00 AM PDT by Baynative
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To: SeekAndFind
After you zero out the department of education and HUD and health and human service and kill Obummer care there is no problem
17 posted on 07/25/2011 8:21:06 AM PDT by org.whodat (Speaker West, name sounds good.)
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To: SeekAndFind
I thought we took in 200 Billion a month. If that is true than you can add the Vets easily.
18 posted on 07/25/2011 8:21:52 AM PDT by frogjerk (Greedo did not shoot first.)
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To: Grunthor

I might begin with stopping all unemployment benefits after 90 days (generous); next eliminate EPA & Dept.of Agriculture and Dept. Edukshun; on to fed. grants; highways and down the list checking for duplicating programs and each and every program that was out of date. Any and all food stamp recipients notified that food stamp program ends next month - period!


19 posted on 07/25/2011 8:22:36 AM PDT by zerosix (native sunflower)
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To: SeekAndFind; Grunthor

9 million don’t have a job?
many millions more have taken pay cuts?

how Soc. Sec. and Medicare,
all take across the board 10% cut?

10% is too much sharing the pain?
(Medicare used to have a lot higher copay.
that was removed.)

and 99 weeks for unemployment is too much.
cut it in half, that would save another
6.1 billion !

for a total of 16.01 billion.

and i would dearly love to see, the TOTAL cost,
of ALL money that illegals cost, directly and indirectly.
i read that it costs California alone over 21 billion a year.

nationally, it has to be over 100 billion right there.


20 posted on 07/25/2011 8:22:54 AM PDT by Elendur (the hope and change i need: Sarah / Colonel West in 2012)
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To: SeekAndFind

Pay the debt and pay SS and medicare out of their current receipts...

Leaves about enough to pay military and half of everything else.

Cool. No big problem.


21 posted on 07/25/2011 8:25:10 AM PDT by mrsmith
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To: Baynative
I think a major effort to repeal employer withholding would open a lot of eyes in this country.

Agreed. But you will have a lot of folks tell you it doesn't matter. I agree with you.

Withholding is pernicious. Same with business taxes - just hidden in higher prices, lower wages, or reduced ROI.

22 posted on 07/25/2011 8:25:15 AM PDT by Principled
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To: jpl
Look at Dept of Ed funding vs. military pay and compare the benefits of the two.

Defund Dept. of Ed. NOW. It is NOTHING to help the kids. Every time money is thrown at Educ., it means another layer of bureaucrats and administration with no $ getting to the children and schools.

vaudine

23 posted on 07/25/2011 8:25:56 AM PDT by vaudine
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To: Baynative

good point about refunds.
was an article this morning, talking about how lots of people, mostly women, get EITC “refunds” of 6-9 thousand!

http://www.freerepublic.com/focus/f-news/2753527/posts

i’d like to see a grand total, of just EITC
(income redistribution) refunds.


24 posted on 07/25/2011 8:26:14 AM PDT by Elendur (the hope and change i need: Sarah / Colonel West in 2012)
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To: mosaicwolf

I overheard a fella the other day who was complaining that it was taking so long to get approved for SS disability.

He said if they don’t hurry, his unemployment is going to run out!

2 years ago, he was working and on nobodys teat.

But he’s sat on his ever-widening, sedentary behind for 2 years, and now has trouble walking.

He’s also now recieving healthcare for the whole family via Hoosier taxpayer provided medical, and got a bunch of energy-saving upgrades done to his house free of charge.

We’re teaching them how to do this.


25 posted on 07/25/2011 8:26:14 AM PDT by digger48
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To: SeekAndFind

It’s pretty clear Obama’s plan A is not to agree to a debt agreement and then maximize the pain and blame it all on the Republican House. Plan B is to get an agreement with tax increases, then use that to defeat Tea Party members who voted for it.


26 posted on 07/25/2011 8:26:53 AM PDT by Menehune56 ("Let them hate so long as they fear" Oderint Dum Metuant), Lucius Accius, (170 BC - 86 BC))
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To: Grunthor

hehe... I agree with you.

However, urban areas will become war zones quickly.


27 posted on 07/25/2011 8:26:59 AM PDT by rarestia (It's time to water the Tree of Liberty.)
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To: SeekAndFind

Federal Revenues are approx $200 billion per month. You can easily pay active duty military and veterans affairs. Those two items are a drop in the bucket. The rest of the list could disappear and most people would never even know it had been shut down.


28 posted on 07/25/2011 8:27:38 AM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped.)
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To: SeekAndFind

Bipartisan Policy Center.....
Hahahahahaha...

A US congressional panel rejected a proposal Thursday to cut off 7.5 Billion in aid to Pakistan.

http://www.asdnews.com/news/37011/US_spares_Pakistan_aid_but_keeps_pressure.htm?utm_source=Daily_News_Headlines&utm_medium=email&utm_campaign=ASDNews_DNH_Z1

So congress votes to give 7.5 Billion to Pakistan and
wants to default on 2.9 billion on active duty military
pay?

Would you like the red pill or the blue pill?

This whole budget is B.S. designed to fleece the public
and rob more of their dwindling property.


29 posted on 07/25/2011 8:28:44 AM PDT by DaveTesla (You can fool some of the people some of the time......)
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To: rarestia

hehe... I agree with you.

However, urban areas will become war zones quickly.


I live nowhere near an urban area so.....win-win.


30 posted on 07/25/2011 8:30:59 AM PDT by Grunthor (Faster than the speed of smell.)
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To: jpl

aye that

pay unemployement benefits before the active military? I think not. Cut unemployment checks in half and pay them both.

I have seen no effort by the administration to ask which retirees would be willing to forego all or part of their SS for some period of time- 6 months, or a year - certainly some would volunteer. Stop allowing SS for those age 62 unless they are certified as disabled

MEDICARE costs can be immediately shifted more onto individuals by establishing and raising deductibles

Ditto with MEDICAID, no more “free” visits, pay $1 or $5 or $10 and cut down on abuse of the system

Cut the cap gains tax to 10% for a 1 yr period, and stand back


31 posted on 07/25/2011 8:31:10 AM PDT by silverleaf (All that is necessary for evil to succeed, is that good men do nothing)
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To: SatinDoll; All

I CALL SHENANIGANS...

This “Report” is bogus bullsh..t.

ONE: The “Unemployment insurance” mentioned is the Federal Extensions for 99-weekers. STATES have their own Unemployment Insurancce programs that the feds have been subsidizing since Porkulus.

TWO Revenues are closer to $200B a month, Not $172B


32 posted on 07/25/2011 8:32:44 AM PDT by tcrlaf (You can only lead a lib to the Truth, you can't make it think...)
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To: Grunthor

I’m in the heavily-wooded area of the burbs and have numerous contingency plans in my own household and with my neighbors to combat any insurgency. Unless there are more mindless unemployed zombies and thugs than there is ammo, I think we’ll be okay.


33 posted on 07/25/2011 8:33:09 AM PDT by rarestia (It's time to water the Tree of Liberty.)
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To: SeekAndFind

Cut out defense vendor payments. First of all, it’s filled with waste and over charging. Second, just force GE to pay the vendors with the taxes they should have been paying.

Cutting out all the government checks will not happen until there is no choice. And when that happens it’s every man for himself because things will get ugly.


34 posted on 07/25/2011 8:34:16 AM PDT by Terry Mross (I'll only vote for a SECOND party.)
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To: SeekAndFind

That’s actually a pretty small list of things that wouldn’t get paid for. The other day I heard Erik Erikson whining on his radio show about the demise of NASA. NASA is the kind of thing you get rid of when you’re broke, not just NPR, Planned Parenthood or the Department of Education. Things I can also think of:

* Aid to Israel and any other foreign aid
* National Parks
* Most overseas military bases — pull out of Europe, South Korea, Japan and let them pay their own freight except for vital bases that support operations in our national interest
* Virtually all nonessential Federal agencies

I’m sure you all can think of things to add to the list. That is our new reality, courtesy of those who overspent and overpromised before us.


35 posted on 07/25/2011 8:34:42 AM PDT by Oshkalaboomboom
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To: Grunthor

Agreed. Pay the military, pay the vets, give the tax refunds (just as much of a debt as interest payments). Drop unemployment benefits (why is the fedgov involved with them anyway - I pay unemployment taxes to my state).


36 posted on 07/25/2011 8:34:54 AM PDT by Atlas Sneezed (Government borrowing is Taxation without Representation)
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To: jpl

I wish I had the same confidence about Retired Military Pay, but I do not...


37 posted on 07/25/2011 8:35:41 AM PDT by Bean Counter (Knowledge is pitiless.)
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To: Oshkalaboomboom

Get rid of our outrageous payments to the U.N. STOP THEM NOW!!!


38 posted on 07/25/2011 8:36:07 AM PDT by Mr. Wright
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To: SeekAndFind
It is mind boggling that monthly cost of unemployment benefits ($12.8 BILLION) - is over 4 times the monthly budget for active duty military pay ($2.9 BILLION)

we are so screwed up

39 posted on 07/25/2011 8:36:09 AM PDT by silverleaf (All that is necessary for evil to succeed, is that good men do nothing)
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To: Oshkalaboomboom
A SUMMARY OF THE VARIOUS DEBT PLANS OUT THERE IN A TEAR SHEET FOR ALL TO SEE ( I WONDER WHY PAUL RYAN's PLAN WAS NOT INCLUDED ):

40 posted on 07/25/2011 8:36:47 AM PDT by SeekAndFind (u)
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To: rarestia

I think that all good conservatives should get out of the cities. Wouldn’t do to be caught there when the government funds stop. Those animals will be eating one another within days.


41 posted on 07/25/2011 8:36:58 AM PDT by Grunthor (Faster than the speed of smell.)
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To: SeekAndFind

If anyone has any misconceptions about what drives our federal expenditures, these charts should have a sobering effect. The entitlement programs and debt servicing costs are about $130 billion a month. Look at all those things that total $134 billion that won’t be funded. Active duty military pay and federal salaries total only $17.1 billion. Food stamps are $9.3 billion.


42 posted on 07/25/2011 8:39:11 AM PDT by kabar
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To: SeekAndFind

I agree with Herman Cain. The decision should be by department.


43 posted on 07/25/2011 8:39:41 AM PDT by mathluv ( Conservative first and foremost, republican second - GO SARAHCUDA!!!!)
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To: Grunthor
Looked at the charts, I say pay the vets and drop unemployment bennies.

Dropping unemployment insurance(12.8B) allows military pay to continue, plus a bunch more stuff). Is unemployment still 99 weeks?

44 posted on 07/25/2011 8:40:05 AM PDT by PapaBear3625 (When you've only heard lies your entire life, the truth sounds insane.)
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To: SeekAndFind

Why are Social Security, Medicare and unemployment expenses on the “ok to pay” list? Don’t these expenses each have a dedicated funding source set aside in a lock box? That’s what Al Gore and the Dems have said for years...


45 posted on 07/25/2011 8:40:10 AM PDT by TenthAmendmentChampion (Darwinism is to Genesis as Global Warming is to Revelations.)
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To: SeekAndFind

These figures look as if they were skewed to make a point.

There is no time period stated so it is impossible to determmine the basis for these calculations.

Estimates for 2011 Government Revenue hover around $4.5 trillion.

Move the active duty military payments to the top chart and we would be good to go.

Much of the expenditure in the bottom chart is for items we would like to see eliminated anyway!


46 posted on 07/25/2011 8:40:15 AM PDT by Iron Munro (The more effeminate & debauched the people, the more they are fitted for a tyrannical government.)
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To: SeekAndFind

This whole discussion is LONG over due and is a healthy thing.


47 posted on 07/25/2011 8:42:41 AM PDT by central_va ( I won't be reconstructed and I do not give a damn.)
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To: silverleaf

RE: It is mind boggling that monthly cost of unemployment benefits ($12.8 BILLION) - is over 4 times the monthly budget for active duty military pay ($2.9 BILLION)

_____________________________________________________________________________

We have about 3 million active and reserve military personell, on the other hand we have according tot he Bureau of Labor, 14 Million Unemployed ( those that are counted in the 9.2% unemployment rate ).

Therefore, we have over 4 1/2 times civilian unemployment compared to those in the military.

The cost numbers look proporational in this case.


48 posted on 07/25/2011 8:43:05 AM PDT by SeekAndFind (u)
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To: Terry Mross

And when I say “government” checks I’m also talking about all the fed employees. Less than half the people working “feed” the rest. Cut out all the fed employees and all the bennie checks and it’ll be even worse. Where do you think those people will get their needs filled? We all best have a lot of food and a lot of ammo.

In short, there’s nothing that can be done except raise the debt. IT pisses us all off but it’s going to happen.


49 posted on 07/25/2011 8:43:05 AM PDT by Terry Mross (I'll only vote for a SECOND party.)
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To: mrsmith
Pay the debt and pay SS and medicare out of their current receipts

51% of Medicare expenditures comes from the General Fund. By law, 75% of Medicare Parts B and D (SMI) are funded thru the General Fund. The premiums only cover 25% of the costs. Estimated expenditures for SMI in 2011 is $295 billion, 75% of which comes from the General Fund. The HI trust fund (Medicare Part A) has been cashing in its IOUs since 2008 to make up the shortfall from payroll taxes and payouts. And SS is also in the red cashing in its IOUs to make payments. The bottom line is that receipts are far from adequate to cover Medicare and SS.

50 posted on 07/25/2011 8:45:12 AM PDT by kabar
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