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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Does that say to the White House that Social Security as part of a debt-deficit plan may be a nonstarter in the Senate?
These members also sent letters and pertinent attachments to every state treasurer and attorney general in the country in August and again in November of last year urging a security-minded review of state equity and debt portfolios.
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What if they are so committed to their agenda and dismissive of their constituents that they will allow unemployment to rise, interest rates to skyrocket, government services to disappear, seniors to lose their Social Security checks and other catastrophic consequences of debt defaults and government shutdowns?
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.
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?
What I can tell you is that whatever pieces are part of the pie -- slices are part of the pie in the CR for 2011 -- will not satisfy the need for broader -- to more broadly address tax reform and tax expenditures, Medicare and Medicaid, strengthening Social Security, and some of the other drivers of our long-term debt.
Therefore, Senators Toomey and DeMint should expand their list of priority spending beyond interest on the debt to include Social Security.
But Messrs Feldstein and Samwick also assume that the Social Security trust fund will be allowed to go into debt for about 20 of the next 75 years.
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"CDO" is a common term for collateralized debt obligation, an investment-grade security backed by a pool of bonds, loans and other assets.
Instead, they would ultimately eliminate the unfunded liability of Social Security entirely, which would be the biggest reduction in effective government debt in world history.
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Mr Clinton also added that the Social Security trust fund should be bolstered from general revenues by the amount of interest that this debt paydown had saved.
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He would simply use projected budget surpluses to keep the system going until 2050, by paying down national debt and allocating the equivalent of the interest saved to the Social Security system.
And listen to this: By saving the money we need to save Social Security and Medicare, then within 15 years we will achieve the lowest level of publicly held debt since 1917.
Our interest payments on the national debt (at 5 percent) would roughly equal the entire cost of social security!
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Overall, no more than 30% of the debt is likely to be recovered by selling the assets that served as security for the loans.
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?
Adequate coverage of interest expenses is a sign of security for investors, as it ensures that the company can meet its obligations related to senior debt instruments.
They support limiting tax deductions and sacrificing some of their Medicare and Social Security benefits to ensure that we can balance the budget and reduce our debt and deficit.
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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.
Never once during those episodes has the United States defaulted on interest payments on the national debt nor has it had to suspend or reduce Social Security payments, although the prospect of both calamities occurring is always used to scare the American public into supporting an unconditional increase in the debt limit fairly quickly after the debt ceiling is reached.
Most of the budget is Medicare, Social Security, Medicaid, defense spending, and interest on the national debt.
This cheapening of debt effect is also true for the trillions of dollars in unfunded mandates such as social security, health care and government pensions.
He also said there should be limits to the amount of government debt held by the public and that the ceiling should be lowered as the Social Security surpluses mounted.
The president argued in his letter that the Republican plan carries costs that will rise exponentially, risking the extended solvency of the Medicare and Social Security plans, and the country's ability to pay down the national debt, among other fiscal priorities.
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According to the Congressional Budget Office, the Federal debt held by the public (which does not include social security obligations) was 35 percent of GDP in 2000, 62 percent in the second quarter of 2010, and is expected to reach 70 percent in 2011.
If Congress fails to increase the debt limit, the government would have to stop, limit, or delay payments on a broad range of legal obligations, including Social Security and Medicare benefits, military salaries, and interest on the national debt, which is paid to big, market maker banks like J.
The coming tsunami of deficits and debt instead will result from a sharp increase in spending on entitlements: Social Security, Medicare, and Medicaid.
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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.
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.
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