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 ...
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.
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.
I agree with Herman Cain. The decision should be by department.
Dropping unemployment insurance(12.8B) allows military pay to continue, plus a bunch more stuff). Is unemployment still 99 weeks?
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...
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!
This whole discussion is LONG over due and is a healthy thing.
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)
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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.
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.
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.
Other spending = White House entertainment budget.
Try $2.2 Trillion. If the Government had $4.5 Trillion coming in, even Obama’s ridiculous Budget Proposal would have been balanced.
Where did you get that figure?
One "republican" started program that should be completely eliminated.
First proposed by Nixon, signed into law by Ford and increased under every administration since, without exception. It's a communist redistribution of wealth, at its finest.
RE: 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.
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If you want to look at the detailed analysis, here is the document in PDF format:
http://www.bipartisanpolicy.org/sites/default/files/Debt%20Ceiling%20Analysis%20FINAL_0.pdf
I think the time period is ONE MONTH.
Also, I have a question regarding :
Estimates for 2011 Government Revenue hover around $4.5 trillion
I thought the US Government’s revenue for 2011 is estimated to be $2.4 Trillion and our budget is about $3.85 Trillion...
That is why we have a deficit of about $1.5 Trillion.
But correct me if I am wrong.
I wish I could get out of the city but I just can’t afford it. I’m sure I’m not alone.
Well put,Westbrook. Couldn’t agree with you more!
IRS “refunds” = 3.9 B (my guess EITC)
Or even drop the unemployment benefits except to those who have been unemployed for 13 weeks or less. I bet with that you can pay active duty military and veterans benefits.
Got an e-mail a couple of days ago with sources to verify. The number was $338.3 billion annually.
Look how health and human services grants are hidden in the middle.
These “grants” are payments to the states so the states can use their money for other stuff and represents creeping federalism at its most malignant
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