It would ensure that there would be in place an orderly procedure for preventing default on the national debt and Social Security if the government reaches the debt ceiling and is precluded from borrowing more money for a while.
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Today, President Barack Obama says the sky will fall, interest will not be paid on the national debt and Social Security checks will not go out if Congress refuses to raise the debt limit.
Congress could either provide guidelines to the executive on how default spending reduction is to occur or it could give the president authority, after paying all interest on the debt and Social Security payments, to whittle spending down as it sees fit to squeeze it within the debt limit.
With roughly three times more income than needed to honor our Social Security and debt obligations, and with 97% of Social Security spending during the next 10 years covered by revenues already earmarked for Social Security and the remaining 3% having a legal call on general revenues, why would we ever default on either one?
If Congress imposes a hard budget constraint on itself by refusing to raise the debt ceiling and establishes Social Security and interest on the debt as priority must-pays out of revenues before any other programs may be funded, it would require total other, non-priority spending to be reduced not quite one-third on average during the next ten years.
It would ensure that neither interest on the debt nor Social Security payments would be defaulted on if the federal government were precluded from borrowing more money.
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Every day that goes by with the government unable to borrow more money puts more pressure on the Congress simply to raise the debt limit to prevent the government from defaulting on the national debt or Social Security payments.
In its 2011 Annual Global Risks Report, the WEF warned the world's economy could not withstand any further shocks to the system and identified 37 main threats to its future stability, from crippling government debt and cyber security, to unsustainable pressure on resources and food security.
This provision would prioritize spending on debt service and Social Security to give them both first-call on revenues in the event the debt limit is reached.
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Therefore, Senators Toomey and DeMint should expand their list of priority spending beyond interest on the debt to include Social Security.
And remember, that total includes rising debt interest and social security payments.
Almost two-thirds of Republicans say that they would prefer a plan mixing smaller tax cuts with debt reduction and Social Security reform to big tax cuts.
Under this hard budget constraint, the rest of the government would have to live on whatever revenues are left over after debt service and Social Security benefits are paid unless Congress is willing to vote for more new borrowing, by super-majority vote if it wants to increase the debt more than the economy is growing.
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If issuing Social Security checks does nothing to immediately affect the debt limit, how is it possible that Social Security would be at the top of the expenditure cut list?
Admiral Mullen said that the most significant threat to our national security is the debt.
Furthermore, the notion that they have the security of a debt instrument is usually a fallacy rarely is there any liquidation value when an early-stage company fails.
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As Buck put it, any additional cuts, either from the joint committee or the sequestration trigger, would turn a debt crisis into a national security crisis.
The former chief of -- the Joint Chiefs of Staff said that -- Admiral Mullen -- said that our debt is the biggest national security threat we face.
Using an ERP, the owner remains on title to the real estate or business, whilst a third party depletes its value, typically through a bogus mortgage or some other arrangement whereby the asset is used as collateral or security for a debt.
And polls have consistently shown that a significant majority of Americans prefer to use the budget surplus primarily to pay down the national debt and to bolster Social Security and Medicare (as Gore is urging) rather than for a large tax cut as Bush has proposed.
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It is not clear what the legal priority is among the Treasury's obligations, whether contractual such as bond debt or statutory such as social security.
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Consumers should ask these same questions about other extra products offered with their loan, such as auto or shopping clubs, home or auto security plans, and debt cancellation products.
At real GDP growth rates above the real interest rate on government debt (estimated by the Social Security trustees at 2.90% for the federal government, state interest rates are comparable), the PVIH of future GDP is infinity.
"CDO" is a common term for collateralized debt obligation, an investment-grade security backed by a pool of bonds, loans and other assets.
Does that say to the White House that Social Security as part of a debt-deficit plan may be a nonstarter in the Senate?
That revenue loss would be overwhelmed by a budget policy of returning every federal line item to 2007 levels, except Social Security, Medicare, Medicaid, debt interest, and federal employee retirement benefits.
Lorence notes that wash sale treatment depends on whether the ETF holds a basket of securities or if the ETF or exchange-traded note (ETN) is a security such as an option or debt instrument.
It's Obama who's now the deficit-and-debt hawk and who has proposed cuts to Social Security and Medicare.
Young people are becoming more frugal in an attempt to seek financial security, with aims to pay off debt and increase savings.
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Growth at that level would cut the debt, significantly reduce unemployment, shore up Social Security and Medicare, and provide the prosperity that Americans need and deserve.
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