As August 2 draws ever closer, President Obama has resorted to even larger and more despicable lies. Now he is threatening seniors that social security checks may not go out if the debt ceiling is not increased by August 2.
As reported by financial wizard Greg Hunter at the reference, in part, that is simply not true:
The gloves came off in the fight over raising the debt ceiling yesterday. On CBS News, the President basically threatened to cut off Social Security checks by August 3rd if a deal was not reached. Mr. Obama said to veteran newsman Scott Pelly, “I cannot guarantee that those checks go out on August 3rd if we haven’t resolved this issue, because there may simply not be the money in the coffers to do it.”Rather than wasting time with silly fear mongering, Obama and the Democrats need to be working with Republicans to cut $4 trillion in spending—without raising taxes!
What? So, the President admitted there is no money in the Social Security Trust Fund? Why in heck didn’t Mr. Pelly call the President on this???!!! Is it because Pelly is afraid he will never get another Presidential interview? I don’t know if the President really believes this, but it looks like a political scare tactic to me.
What I do know is the President’s statement is simply not true! According to Social Security, the Trust Fund holds something called “special issues.” Here’s what the government’s own website says, “Unlike marketable securities, special issues can be redeemed at any time at face value. Marketable securities are subject to the forces of the open market and may suffer a loss, or enjoy a gain, if sold before maturity. Investment in special issues gives the trust funds the same flexibility as holding cash.
Did you get that? What Social Security holds is the same as “holding cash!” Threatening to cut off funds to seniors and the disabled is more political theater than budgetary fact. It is also a clear sign the budget ceiling fight has turned ugly.
I think making political threats like this is a big mistake by the President. This could harm the idea of “full faith and credit” of the U.S. even if a deal is reached in time to make the August 2nd deadline. Hardline politics on both sides could make consumers of our debt run like hell. The President should be reassuring Treasury holders.
Instead, the President is not just scaring seniors, but also buyers of our debt. Why would anyone want to go through this kind of drama every year? Wouldn’t you be looking for fixed income investments someplace else? That’s what the biggest bond fund in the world (PIMCO) is doing. Also, every time the debt ceiling is raised (and there will be more in the future), this further devalues the dollar. In short, I think U.S. debt is already damaged goods. Treasury buyers might impose a real debt ceiling and stop buying altogether. Some countries have recently done just that.”
Just do it, 'Bama!