Officials Will Brief Public on Which Bills Will Be Paid, Which Not, After Markets Close Friday
If there is no clear path out of this morass by tomorrow, sources say that administration officials will likely brief the public on how the Treasury Department will try to handle the bills Congress mandates that the government pay given a situation where Congress has not given them a way to do so.
Look for that briefing to come no earlier than Friday after the markets close at 4 p.m. ET, sources say.
Officials are most concerned about paying the interest on the existing debt, since failure to do so would result in default and almost certain immediate market panic, as well as questions about how Treasury would be able to roll over a pre-existing $87 billion in debt that comes due next week.
After that — a list of priorities, not all of which that can be met. Social Security checks? Medicare? Government workers? Pentagon contractors? Troops' salaries? The FBI?
Vice President Joe Biden and Senate Minority Leader Mitch McConnell have been talking privately about a possible way forward should Boehner's bill fail in the Senate, which seems likely, according to sources familiar with the talks.
Any path forward if the House GOP bill fails in the Senate would likely be some compromise between the House Speaker John Boehner's bill that would raise the debt ceiling for six months and Senate Majority Leader Harry Reid's, which would raise it through the beginning of 2013. Their two proposals each seem doomed to fail in the other's chamber.
Math on any compromise is tricky in Congress. Boehner would automatically lose at least 80 Tea Party Republicans on a compromise. This means he would need House Democrats to pass it.
But there is also planning underway in case no bill can pass through Capitol Hill.
A spokesman for McConnell insisted that the GOP Senate Leader is not talking about any plan other than passing the Boehner bill.
- Jake Tapper
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The American people pay into Social Security out of each paycheck. Money paid by the American Working Classes blood,sweat and tears. In the hope that someday our children will do the same for us. If the American People pay into Social Security in the coming weeks and the Government does not use that money for Social Security payments, than isn’t that fraud?
Like giving someone money for your part of a cell phone bill and later finding out it was never used to pay that bill and your service is cut off.
A rational individual would find their proof of payment and march straight to small claims court, do to fraud.
We paid to protect our senior citizens and if our government chooses to not pay them and instead uphold the interest of other countries, that is FRAUD and we the people should sue you for this.
Posted by: Nick | July 28, 2011, 7:37 am 7:37 am
The “press release” won’t happen until AFTER the national evening news is over. EVERYTHING negative about this regime comes out late Friday, because less people watch TV on the weekends. And the press plays along…..
Posted by: wheresmymoney | July 28, 2011, 7:59 am 7:59 am
The first item on the list of things that should NOT be paid is the Congressional salaries and benefits (as well as the President and Vice President).
If they are not doing their job, why should they be paid?
Posted by: Mark | July 28, 2011, 8:00 am 8:00 am
Will government bureaucrats have to suffer the indignity of flying coach?
Posted by: Larry | July 28, 2011, 8:06 am 8:06 am
So, Conservative Republican support of this bill represents their final compromise – but the liberal Dems and the President will insist on yet more compromise, while continuing to claim that Repubs are intransigent. So still, there is no search for solution, but instead only for political compromise. Stupid.
Posted by: n'erdowell | July 28, 2011, 8:39 am 8:39 am
“After that — a list of priorities, not all of which that can be met. Social Security checks? Medicare? Government workers? Pentagon contractors? Troops’ salaries? The FBI?”
Can they please make this a complete list. Let the American people know just how big and bloated their government is. I would think that once they saw how many items/people/projects and etc. this behemouth is responsible for that they would all be on board with spending cuts.
Posted by: J.R. | July 28, 2011, 8:45 am 8:45 am
“If there is no clear path out of this morass by tomorrow”
and let’s be clear about this. The House Republicans have been the only serious players attempting to lead us out of this “morass.” Once the Boehner plan gets approved today (which I think it will) then its up to the Senate and Obama to get this thing done. It seems to be the only option out there and it’s a fair one.
Posted by: J.R. | July 28, 2011, 8:48 am 8:48 am
Hope all who voted for the Tea Party are happy. They promised not to raise the debt ceiling and will not vote for it. So now we will all go down. Stupid! together with the GOP they are ruining this country. I will never vote for any of them ever!
Posted by: Barb | July 28, 2011, 8:59 am 8:59 am
Compromise on the repub side? What compromise? The Boehner bill has no dem support in the house. At best it is a compromise between the repub factions. It is certainly not a bi-partisan bill.
Just goes to show how distorted this discussion has become when a partisan bill is called a “compromise”.
Posted by: Moby49 | July 28, 2011, 9:00 am 9:00 am
AND yes Soc. Sec. is OUR money but for the past DECADES they have been borrowing from it. Yeah blame this president…NOT.
Posted by: Barb | July 28, 2011, 9:00 am 9:00 am
Why not ask $arah Palin what she would do. She likes making snide comments but she never seems to have creditable answers. Now is the time for her to show us her intelligence and presidential leadership……….
Posted by: Pete | July 28, 2011, 9:00 am 9:00 am
The President should invoke the 14th Amendment should there be no compromise reached. This would save us from default, prevent the economy from tanking and teach the Tea Party extremists the benefits of compromise as they will have then won absolutely nothing for their cause.
Posted by: Joel Miller | July 28, 2011, 9:08 am 9:08 am
Sounds great to me! Prioritize!!! That is what we’ve needed all along. Without a budget, and with carte blanche on the spending end, no one ever has to prioritize. Yes, Mr Obama, if you don’t have enough money to purchase everything you want, what will your purchasing priorities be? Put your priorities on the table for all the world top see – for once.
Posted by: n'erdowell | July 28, 2011, 9:10 am 9:10 am
When a man arrogantly states, “Don’t call my bluff” – he is telling you one thing for sure – and that is that he is bluffing!
Posted by: n'erdowell | July 28, 2011, 9:16 am 9:16 am
“Hope all who voted for the Tea Party are happy. They promised not to raise the debt ceiling and will not vote for it. So now we will all go down. Stupid! together with the GOP they are ruining this country. I will never vote for any of them ever!” -Barb
Barb, if the debt ceiling isn’t frozen at some point, then what you’re saying is that there should be no limit on what the government should be allowed to borrow -i.e. government debt should be limitless.
I know it’s painful to make decisions like the ones we’re talking about, but the ‘infinite amount of money’ that would prevent this catastrophe doesn’t exist.
Posted by: Larry | July 28, 2011, 9:17 am 9:17 am
Perhaps they should start by cutting off all payments to any tea party district.
Posted by: MaeMobly | July 28, 2011, 9:27 am 9:27 am
I bet they’ll get their check.
Posted by: LongT | July 28, 2011, 9:30 am 9:30 am
Larry the debt ceiling is about already spent money. It has NOTHING to do with a budget or spending. It’s about printing bonds to sell to raise money for the shortfall coming in. This shortfall is huge due to a recession and tax cuts. The right has the house. They could have introduced some reasonable measures to control debt without going this route. It’s also a joke because they are a huge part of the reason we have these problems. This is ALL politics.
Posted by: MaeMobly | July 28, 2011, 9:30 am 9:30 am
“The debt ceiling has NOTHING to do with a budget or spending.” -MaeMobly
Then it must be the only thing inside the beltway, besides the gravitational constant (and even that’s debatable), that has NOTHING to do with a budget or spending.
Posted by: Larry | July 28, 2011, 9:44 am 9:44 am
MaeMobly; So buy bonds. You’re the hero type.
Posted by: LongT | July 28, 2011, 9:44 am 9:44 am
Obama is a phony.
Posted by: LongT | July 28, 2011, 9:45 am 9:45 am
Larry…we’re going to go “down” (as you say) anyway. Do you really think we can keep running Obama’s deficits indefinitely? Do you really think Americans won’t be hurt if we have $30 TRILLION in debt 10 years from now. It’s so obvious why the notion of a balanced budget amendment is so horrifying to the Democrat party. We should be very concerned about a gang of elected officials constantly lying about “default”. Default would be by choice. We have the cash to pay what’s due our creditors. No one serious questions that.
Posted by: s | July 28, 2011, 9:48 am 9:48 am
This neo-Libertarian GOP has become infiltrated with fantasy land Ayn Rand devotees. Politicians like Paul Ryan lead the charge: radical individualism is the ONLY way forward. Concern for the collective good is evil socialism.
If these tea-soaked delusional people get their way, the entire nation will find our social safety net unraveled – from Medicare to Medicaid, Veterans’ Benefits to Social Security, unemployment insurance to public education.
HOW LONG will it be before the middle class and working people – Republicans and Democrats – FINALLY realize these neo-Libertarians are guided by a work of FICTION that creates a reality of misery for the rest of us.
Yes, yes, we need to cut “government waste” – but helping the sick, elderly, handicapped and unemployed is not “waste”. The ONLY way to truly balance future budgets and pay off long term debt is to RAISE TAXES.
Posted by: green.goddess | July 28, 2011, 9:51 am 9:51 am
The last thing the prez wants is to have this circus again next summer. His leadership has already been in question for 30 months. There’s no way to keep blaming Bush for everything when you’re running for re-election. The continued high unemployment and anemic economic growth (and wasted trillions) makes it impossible for patriots to re-elect this law professor.
Posted by: s | July 28, 2011, 9:52 am 9:52 am
“AND yes Soc. Sec. is OUR money but for the past DECADES they have been borrowing from it.” What utter tripe. There are those collecting from Social Security who never paid into it, and the money being paid now is coming from people who are curently working.
Posted by: Publius | July 28, 2011, 9:53 am 9:53 am
s, I wholeheartedly agree. I’ve said it before on another blog entry that the $2-plus trillion they take in should be enough for the gov’t to perform it’s required duties.
Unfortunately, there are alot of people who make a living doing things like measuring the speed of a shrimp on a treadmill. If we don’t have the money for such nonesense -and we don’t -then those people are just going to have to find something else to measure. Else the country collapses. It’s that simple.
Posted by: Larry | July 28, 2011, 9:59 am 9:59 am
green.goddess; Is Ayn Rand the only author you’ve ever read? It’s getting OLD!
Posted by: LongT | July 28, 2011, 10:01 am 10:01 am
“Larry the debt ceiling is about already spent money. It has NOTHING to do with a budget or spending.”
Wow, now that’s ignorance on display right there. mobly, how did we get to the point of possibly breaching the debt ceiling? Perhaps it was because of our ridiculous amounts of spending allocated in prior budgets? Are you kidding us?
“This shortfall is huge due to a recession and tax cuts.”
No, it’s huge because our government is spending way more money than they are taking in. We have a spending problem, there is plenty of revenue there.
“The right has the house. They could have introduced some reasonable measures to control debt without going this route”
What route is that exactly? Obama will get an immediate increase in borrowing/spending of almost $1trillion while next year the budget “growth” will be cut by some $30billion if we’re lucky and then some gimmicky promise for more cuts in the future that future congresses won’t have to abide. We’re not even cutting real spending, just the amount that the spending is due to increase. It’s ridiculous to state that this is not a reasonable measure.
Posted by: J.R. | July 28, 2011, 10:06 am 10:06 am
“There are those collecting from Social Security who never paid into it, and the money being paid now is coming from people who are currently working.”
See? What did I just say? Citizens who are elderly, unable to work, sick, handicapped are in the “non-producers” or “moochers” or “sponges” in the neo-Libertarian Republican fantasy land.
Unfortunately, they ignore the fact that Ayn Rand became old too – she developed lung cancer and eventually needed to use SOCIAL SECURITY and government funded health care.
What ever happened to the American belief in the common good? In repaying your country for the gifts our nation gave us? Whatever happened to, “we are only as strong as the weakest among us”? Communism! Socialism! Maybe even Christianity.
Posted by: green.goddess | July 28, 2011, 10:09 am 10:09 am
POSTED BY: LONGT | JUL 28, 2011 10:01:24 AM posted: “green.goddess; Is Ayn Rand the only author you’ve ever read? It’s getting OLD!”
Take off the blinkers LONGT.
Representative Paul Ryan requires his staffers to read Ayn Rand’s “Atlas Shrugged”, describes Obama’s economic policies as “something right out of an Ayn Rand novel,” and calls Ayn Rand “the reason I got involved in public service.”
And here’s a quote from Ryan: “Almost every fight we are involved in here on Capitol Hill … is a fight that usually comes down to one conflict–individualism versus collectivism.”
One thing we can agree on though – the infusion of Rand’s dystopia into the GOP is “getting OLD”.
Posted by: green.goddess | July 28, 2011, 10:19 am 10:19 am
We will NOT default on our debt, we have plenty of money to pay our interest, social security, military, medicare, etc. Maybe the President should not pay all his Czars, all his wife’s staff, not fly on air force one daily, stop the war in Libya, stop paying Congress and himself, etc. Harry Reid, Nancy and the President ignored this for three years, now they want to blame anybody but themselves.
Posted by: Freedom | July 28, 2011, 10:19 am 10:19 am
green.godess; Have you read “The Fountainhead”?
Posted by: LongT | July 28, 2011, 10:30 am 10:30 am
I love it that Ayn Rand annoys you.
Posted by: LongT | July 28, 2011, 10:30 am 10:30 am
So what is wrong with forcing those who run our government, particularly the President, to live within a budget? The concept is not exactly a radical new scheme. It is as old as finance. It forces us to set priorities and make decisions, some of which can be very hard, but are necessary. A debt ceiling IS A BUDGET – A DEBT BUDGET. It has been raised over a hundred times simply because most folks were not even aware of it. Regardless of political party affiliation, reasonable people understand budgets and debt. Ideology should have nothing to do with financial reality. The reality is that our debt is already unsustainable without significant spending reduction. Taxes will be irrelevant as the economy slows and moves into negative territory (we are close to that point). Raising taxes in a slowing economy is like threatening your boss with quitting unless you get a raise, simply because you have personally overspent and can’t keep up. Next week without a pay check, who will you threaten? Even with higher tax rates, a dying economy provides less tax revenue. I would say, “It ain’t rocket science” but apparently we don’t even do that anymore.
Posted by: n'erdowell | July 28, 2011, 10:37 am 10:37 am
One point we are missing here is that the money for Social Security is borrowed–borrowed–not sitting in a lock box somewhere. Let’s get a Balanced Budget Amendment to the Constitution and solve this problem permanently. Why don’t Obama/Democrats want to act responsibly and live on a budget???If they want to create more tax dollars then we need more jobs!!! Stop Obamacare, stop the excessive regulations. lower the business tax rate,reduce the size of government and stop wasting our tax dollars!!!
Posted by: whathappened08 | July 28, 2011, 10:38 am 10:38 am
President Barack Obama’s conduct during the debate over the debt ceiling has divided the country and will inflict damage that will last well after the battle is over, former New York Stock Exchange director and Wall Street stalwart Ken Langone said.
While he believes a debt deal will get done and in fact favors a plan closer to what the Democrats are proposing, Langone told CNBC that Obama’s behavior has been “unpresidential.”
Ya THINK!
Posted by: LongT | July 28, 2011, 10:43 am 10:43 am
Obama has spent a lot of time grinding on CEO’s and “big corporations”. They, at least, are required to operate within a budget or face shareholder revolt. Of course government doesn’t even have to sell to customers – it just raises prices (taxes) and then spends it as it pleases. Then, some silver-tongued devil makes the sale every four years (always with promises – never with achievements)and raises your prices again. Folks, you have a chance to bring this to an end.
Posted by: n'erdowell | July 28, 2011, 10:46 am 10:46 am
So force Obama to tell you what his spending priorities are. What program or entitlement will he pay and which will he forego or reduce? Let’s find out what he REALLY believes. Will he dump or limit Social Security so that he can give the UN $50 billion? Will he strip Medicare so he can fund organizations like ACORN and send oil exploration money to Brazil? Make him choose! Then we’ll know who he is.
Posted by: n'erdowell | July 28, 2011, 10:53 am 10:53 am
Jake Tapper – do your homework and quit spewing the Obama Regime montra! Social Security payments, active duty payments and retired military payments are required to be paid by law and the Obama Regime can not stop those payments. They are not part of the budget plan as they are paid out of a different pot. They only way they are stopped being paid is if Obama tells the Treasury to stop paying them and he doesn’t have that authority. So Jake Tapper stop acting like an Obamaite stooge and reserach this yourself.
Posted by: Peter King | July 28, 2011, 11:06 am 11:06 am
Perhaps they should start by cutting off all payments to any tea party district.
Posted by: MaeMobly | Jul 28, 2011 9:27:45 AM
He is welcome to do that as long as he doesn’t COLLECT taxes from them.
Posted by: wheresmymoney | July 28, 2011, 11:17 am 11:17 am
Larry the debt ceiling is about already spent money.
Posted by: MaeMobly | Jul 28, 2011 9:30:18 AM
And who already spent that money? The DEMS and OBAMA the last 2 1/2 years!
Posted by: wheresmymoney | July 28, 2011, 11:18 am 11:18 am
Mark – I totally agree with your comment about all elected officials. “If they are not doing their job, why should they be paid?” Although it won’t make much difference in money spent, it is important that they understand the impact of not passing a budget.
Posted by: MikeMo1947 | July 28, 2011, 11:22 am 11:22 am
Obama is just adding to more reasons for his impeachment. His fiduciary irresponsibility to protec the general welfare of America has been jeopardized by his posturing. His going to war in Libya without congressional approval and his “Fast and Furious” program at the southern border which led to the death of a border patrol agent and murder and mayem in Mexico is just some of his various crimes.
Posted by: Downwithsocialism | July 28, 2011, 12:08 pm 12:08 pm
If SS is NOT paid, if the military are NOT paid, then there should be class action lawsuits against the government.
SS recipients paid for their benefits. Default would amount to breach of contract, with the government.
The military are contractual employees, so if they don’t get paid, there will be breach of contract, and the military has the right to walk off the job.
Posted by: Rick McDaniel | July 28, 2011, 12:21 pm 12:21 pm
First priority should be to meet all debt obligations and thus demonstrate to rating agencies the creditworthiness of the USA. Second should be to pay the troops who defend us and advance our cause. Third should be Social Security to meet our obligations to seniors for the money withheld from their pay checks and for the promises made. Then Medicare for the same reasons. Then Medicaid for the indigent sick. Finally, the remaining funds might be divided proportionately among all other programs and entitlements. There now, Obama, was that so hard?
Posted by: n'erdowell | July 28, 2011, 12:59 pm 12:59 pm
Clearly, for such an “intelligent” man, the President is either really struggling with a rather simple issue – or – this situation and the decisions that must be made will disclose too much of his hidden agenda. Make him choose! Make him show his hand!
Posted by: n'erdowell | July 28, 2011, 1:05 pm 1:05 pm
simple solution to this problem, kill Obamacare right this minute. Shorten unemployments benefits two weeks. Cut the welfare thugs pay in half and reduce the foodstamps to half. There problem solved
Posted by: succab | July 28, 2011, 1:08 pm 1:08 pm
Oh one more thing, stop research on why the slugs move slow. Stop foreign aid. well thats two but were ahead now
Posted by: succab | July 28, 2011, 1:09 pm 1:09 pm
People need to claim exempt on Friday. That way Obama and Dems can’t spend your money.
Posted by: BurningFeather | July 28, 2011, 1:52 pm 1:52 pm
There is no way you can take from the elderly, it matters not if they paid into it or NOT!
You cannot say to a child who is disabled there is no food or midications for you today because the President of our Country vetoed a bill!!
You cannot say to the sick sorry you cannot have that life ensuring operation!!
You cannot say to a Veteran who fought in a war to save the skins of everyone in the USA your not entitled to a pension even if your legs were blown off and you saw all your comrades die!!
There are laws that protect these innocent individuals!!
Posted by: Peg | July 28, 2011, 3:42 pm 3:42 pm
There is no way you can take from the elderly, it matters not if they paid into it or NOT!
You cannot say to a child who is disabled there is no food or midications for you today because the President of our Country vetoed a bill!!
You cannot say to the sick sorry you cannot have that life ensuring operation!!
You cannot say to a Veteran who fought in a war to save the skins of everyone in the USA your not entitled to a pension even if your legs were blown off and you saw all your comrades die!!
There are laws that protect these innocent individuals!!
Posted by: Peg | July 28, 2011, 3:42 pm 3:42 pm
Last to be paid. . . Residents of Ohio. It’s the Chicago Way.
Posted by: FYI | July 28, 2011, 4:10 pm 4:10 pm
Once upon a time, a farmer had a goose that laid eggs made of gold, two of them every day. For many years, he carefully gathered the eggs and used the gold to pay for the things he needed, saving the surplus for the future. Soon, he found there were a LOT of things he needed, and he bought them all, since he had plenty of gold saved up to pay for them. In time, he ran out of his surplus, and the two eggs the goose laid each day were insufficient to support his new lifestyle. He began to buy the things he so desperately needed by promising to pay for them later. Many merchants offered him credit, as he had always paid his bills before. However, with only two gold eggs each day, he could never pay off all of his debts AND continue to buy the things he absolutely could not live without. At last, when the merchants were hounding him for their money back, he decided to solve his problems with a simple solution: he would kill the goose and take all of her golden eggs at one time!
Anyone who needs to have the outcome of this brilliant plan explained to them has probably already been elected to Congress.
Posted by: Granny Aesop | July 28, 2011, 4:25 pm 4:25 pm
Why are they only talking about the vote on Boehner’s plan?
What about the vote on Reid’s plan, which hasn’t been written or voted on in the senate? Oh, yeah I guess it needs to be written first doesn’t it?
But they could vote on the Obama plan, which doesn’t have enough details to be scored by the CBO much less written down or voted on either… oh, nevermind.
So the Senate has had two bill so far (CCB and Boehner’s) to try to move this forward, the President has nothing with any detail and the senate has nothing with sufficient details.
Clearly the problem are the Republicans… by working they’re making the rest of the government look bad. they need to slack off and do nothing while mouthing useless platitudes and slogans and quit voting… they’re the problem.
Posted by: ertdfg | July 28, 2011, 5:57 pm 5:57 pm
** Jeez, the House has had two bills so far; not the Senate… that was a boneheaded typo. The Senate doesn’t have a plan to vote on yet (and wont for Several weeks still).
Posted by: ertdfg | July 28, 2011, 5:58 pm 5:58 pm
Senate Democrats have made around 4 proposals to Republicans. Republicans shot them all down w/o any considerations to try to come to a comprimise. Why bother to write it on paper as a way of finalizing a deal if the proposal has been predisposed by the other party. Which draws into question does the Republicans think just because they put a proposal on paper that any more thought went into it. They know it’s going to be shot down just as they shot down the democrats proposals. Maybe the stalemate between the 2 parties is best. The only solution to the debt ceiling would be for The President to man – up and invoke the 14th amendment. At least that way neither party would have to comprise thier integrity.
Posted by: Brad Ford | July 28, 2011, 11:19 pm 11:19 pm
Impeach the President; Investigate Fast and Furious; any man that demagogues an issue like retired folks’s pensions is a man without character. Investigate this man; his party and stand by for some replacement actions for high crimes and misdemeanors!
Posted by: Patriot | July 28, 2011, 11:20 pm 11:20 pm
One thing I have not heard from BO and little Timeh. Most state and private businesses furlough non-essential workers when they have a budget shortfall. I hope this is in the plan but probable is not since the white house is under the heel of the union thugs.
Posted by: retired USAF | July 29, 2011, 8:19 am 8:19 am
Tea Party took something simple and trun it into a crisis. I like to known why the United States allows 80 people to hold the creidt of the oounty hostage so they can get their way. If this was some out side threat we would have gotten rid of them by now.
Posted by: Martin E Barry Jr. | July 29, 2011, 2:49 pm 2:49 pm