Category: Debt

Feds Can Pay Obligations Without Raising Debt Ceiling

Feds Can Pay Obligations Without Raising Debt Ceiling — Sen. Pat Toomey (R-Pa.)  is praising the passage of  the Full Faith and Credit Act  by the U.S. House of Representatives last week.

“The legislation will ensure that the U.S. government does not default on its debt by requiring the Treasury to prioritize payments on the debt in case the debt ceiling is not raised,” Toomey said.

Toomey authored the Senate version of the bill to protect Social Security benefits and military pay and to require that our government prioritize all obligations on the debt held by the public in the event that the debt limit is reached.

“For months, some political leaders have argued that failure to raise the debt ceiling would necessarily cause the United States to default on its debt,” Toomey said. “This is not the case. If Congress refuses to raise the debt ceiling, the federal government will have more than enough money to service its debt.”

He noted that that this year, about 6 percent of all projected federal government expenditures will go to pay off the interest on our debt, and tax revenue is projected to cover about 76 percent of all government expenditures.

“We need to end government by crisis,” he said. “We need to take the default scare tactics off the table. As the sequester proved, limiting spending does not cause the sky to fall. The Full Faith and Credit Act will allow Congress and the President to have a frank discussion about putting our nation on a path to balance by taking the specter of default off the table.”


Feds Can Pay Obligations Without Raising Debt Ceiling

Monopoly Money And The Obama Administration

Monopoly Money And The Obama Administration — The below rule of banking come from the game of Monopoly and can be found on Hasbro.com:

The Bank never goes broke.

 
If the Bank runs out of money, the Banker may issue as much more as may be needed by writing on any ordinary paper.

 

And this leads us to ponder what exactly are the rules that the Obama Administration and the Democrat-controlled Senate that refuses to allow votes on House-passed budgets are using in setting fiscal policy.

BTW, taxpayers do go broke and run out of money.

Monopoly Money And The Obama Administration

Obama, The Petty President

Obama, The Petty President — You know those White House tours President Obama cancelled to save money for the sequestration?

They are run by volunteers.

Social Security Ponzi Scheme

Social Security Ponzi Scheme Courtesy of Helen S

KEEP PASSING THIS AROUND UNTIL EVERY ONE HAS HAD THE OPPORTUNITY TO READ IT…
THIS IS SURE SOMETHING TO THINK ABOUT!!!!   THE ONLY THING WRONG WITH THE GOVERNMENT’S CALCULATION OF AVAILABLE SOCIAL SECURITY IS THEY FORGOT TO FIGURE IN THE PEOPLE WHO DIED BEFORE THEY EVER COLLECTED A SOCIAL SECURITY CHECK!!!   WHERE DID THAT MONEY GO?

Remember, not only did you and I contribute to Social Security but your employer did, too. It totaled 15% of your income before taxes. If you averaged only $30K over your working life, that’s close to $220,500. Read that again. Did you see where the Government paid in one single penny? We are talking about the money you and your employer put in a Government bank to insure you and I that we would have a retirement check from the money we put in, not the Government.

Now they are calling the money we put in an entitlement when we reach the age to take it back.   If you calculate the future invested value of $4,500 per year (yours & your employer’s contribution) at a simple 5% interest (less than what the Government pays on the money that it borrows), after 49 years of working you’d have $892,919.98.

If you took out only 3% per year, you’d receive $26,787.60 per year and it would last better than 30 years (until you’re 95 if you retire at age 65) and that’s with no interest paid on that final amount on deposit! If you bought an annuity and it paid 4% per year, you’d have a lifetime income of $2,976.40 per month.   Another thing with me…. I have two deceased husbands who died in their 50’s, (one was 51 and the other one was 59 before one percent of their social security could be drawn.

I worked all my life and am drawing 100% on my own social security). Their S.S. money will never have one cent drawn from what they paid into S.S. all their lives.

THE FOLKS IN WASHINGTON HAVE PULLED OFF A BIGGER PONZI SCHEME THAN BERNIE MADOFF EVER DID.

Entitlement my foot, I paid cash for my social security insurance! Just because they borrowed the money for other government spending, doesn’t make my benefits some kind of charity or handout!!   Remember Congressional benefits? — free healthcare, outrageous retirement packages, 67 paid holidays, three weeks paid vacation, unlimited paid sick days. Now that’s welfare, and they have the nerve to call my social security retirement payments entitlements?

We’re “broke” and we can’t help our own Seniors, Veterans, Orphans, or Homeless. Yet in the last few months we have provided aid to Haiti, Chile and Turkey. And now Pakistan……home of bin Laden and Egypt, with a Muslim Brotherhood President. Literally, BILLIONS of DOLLARS!!!   And they can’t help our own citizens in New York and New Jersey!

They call Social Security and Medicare an entitlement even though most of us have been paying for it all our working lives, and now, when it’s time for us to collect, the government is running out of money. Why did the government borrow from it in the first place? It was supposed to be in a locked box, not part of the general fund.

Sad isn’t it.

99% of people won’t have the guts to forward this.   I’m in the 1% — I just did.

Social Security Ponzi Scheme

Social Security Ponzi Scheme

Pennsylvania Debt Clock

http://www.usdebtclock.org/state-debt-clocks/state-of-pennsylvania-debt-clock.html

 

Pennsylvania Debt Clock
Pennsylvania Debt Clock

Freshman Rep. Plans To Tackle Pa. Pension Bubble

Warren Kampf, a Republican who  is serving his first term as state representative from the 157th District, reportedly has a plan to deal with the public employees pension funds which are short about $30 billion, a circumstance that is expected to cause massive tax increases and/or enormous reductions in services next year or soon after.

This underfunding, by law, has to be made up by  government.

Kampf is proposing on introducing legislation that would shift all new state and public school employees into a defined contribution, 401-K type plan, which would free government from having to make good any shortfalls in expectations.

For new employees anyway.

For the old ones? No.

So would this mean the pension bubble problem has been solved? Even a little bit?

Let’s just say we are trying to be positive about this and clapping our hands when we find a penny in the dog poop.

China In Debt To Us??

China In Debt To Us?? — Reader Tom C informs us that China owes the United States $1 trillion from bonds it sold us decades ago.

The bonds were sold by the Republic of China.

The People’s  Republic of China says it is not bound to honor them.

The PRC should be made to realize that word games are a two-way street.

China In Debt To Us??

10 States That Can’t Pay The Tax Bill

10 States That Can’t Pay The Tax Bill — Reader TomC sent this link to a list of 10 states that can’t pay their tax bills.

Believe it or not Pennsylvania is not on it.


Record Sell Off Of U.S. Bonds

Record Sell Off Of U.S. Bonds — Another hat tip to Tom C.

He informs us that foreigners sold a record $69 billion in U.S. Treasury Bonds in December, with sales of $23 billion for the week ended Dec. 28, which is the second highest U.S. bond sell-off in history.

Whatever can it mean? It can’t be anything bad, right? I mean, would President Obama have spent the last 10 days vacationing in Hawaii if there was a problem?

 

Record Sell Off Of U.S. Bonds

Silver Lining In Debt Deal

Silver Lining In Debt Deal –Politico’s Jennifer Haberkorn reported Aug. 3  that the legislation signed Aug. 2 by President Obama that allows the United State’s to raise its debt limit to $16.7 trillion endangers key parts of  ObamaCare.

Among the things that could be cut are:

  • The hiring of government-paid workers to distribute pamphlets at community events and schools (i.e. prevention programs) and to give screenings and nod at complaints (i.e. community health centers)
  •  Money acquired via federal taxes to states (i.e. grants)  to hire more bureaucrats to  set up insurance exchanges and co-ops, and “review” insurance rates
  • Money to set up “temporary” high-risk pools for pre-existing conditions which if created would simply  make the cost of treating those conditions more expensive (see university cost vs. public funding) and/or imposing rationing to resolve issues relating to increased demand  with decreased resources.


The debt ceiling deal may not be enough to save our health care system but it may turn out to be a better start than one had hoped.

Oh, and when will that vote be on HB42 that had been promised by State Rep. William “Hope They Forget” Adolph (R-165)?

Silver Lining In Debt Deal