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Government

AP Fact Check Finds Obama’s Being Dishonest in Using Social Security Scare Tactic

Jan. 15, 2013 8:12am Billy Hallowell

Editor’s Note: The following fact-check was conducted by The Associated Press.

–

WASHINGTON (AP) — No one doubts dire things will happen, and fast, if the government runs out of borrowing authority in coming weeks. But late Social Security checks need not be among them.

President Barack Obama’s blanket statement Monday that “Social Security checks and veterans benefits will be delayed” if Congress doesn’t raise the debt limit masked the options open to the government if it is forced to operate in a severe fiscal pinch. There are many, although none pleasant. If Washington can’t keep borrowing to ensure all its bills are paid, it will need to decide which expenses to cover and which might have to slide until a deal comes together.

It’s possible, but not preordained, that Social Security recipients, veterans and beneficiaries of other cherished programs would take a hit. The administration has choices in how to spread the pain.

Highlighting a threat to the most popular products of the government is a time-honored Washington tactic for turning up the heat on the other side to negotiate and settle.

Few may care, or even know, if spending is slashed on the multitudes of private contractors who do work for the government, one likely consequence if the government runs out of borrowing room. But Obama knows lawmakers will get an earful from constituents if Social Security checks are late in coming.

Obama Claims Social Security Checks & Veteran Benefits to Be Delayed if Debt Limit Not Raised, AP Fact Checks

Photo Credit: AP

The political predilection for hyperventilated worst-case scenarios was dubbed the Firemen First principle in 1989 by Charles Peters of The Washington Monthly, and is known in other quarters as the Washington Monument ploy. It’s the threat that a budget cut will force firemen and police to be laid off, or the iconic monument to be shut, when in fact there are other ways to save money. (It so happens the monument is closed, but for earthquake repair.)

Before a last-minute deal averted what would have been the nation’s first-ever default in 2011, it was widely expected that the government would continue making its debt payments and honor its obligations to Social Security and Medicare recipients, while deeply cutting spending on non-essential federal workers and state and local governments, as well as contractors, in the early going.

The Treasury Department never disclosed what contingency plan it would have put into effect if the government had been forced to decide which of its 80 million monthly payments to continue making and at what pace.

The Bipartisan Policy Center, a Washington-based research group, ran several scenarios. In one, it calculated that the government could make its debt payments and maintain key spending on social programs and entitlements, defense programs and federal pay and pensions — if it held back income tax refunds to everyone and slashed money for road construction, air traffic control, flood insurance and much more.

Treasury’s inspector general reported after the crisis passed that officials had contemplated delaying payments of all kinds because “there is no fair or sensible way to pick and choose among the many bills that come due every day.”

Credit: Getty Images

Under that circumstance, the government would have paid out day to day only what came in as revenue, leaving everyone short and racking up the IOUs at an alarming rate.

This delayed payment regime, said Inspector General Eric M. Thorson, was considered “the least harmful option available to the country at the time, of these very bad options.” But the government didn’t settle on a plan and, as it turned out, didn’t have to.

What’s close to certain – now as then – is that the government would pull out all the stops to ensure debt payments continue. That’s because its credit rating, which shapes the cost of borrowing, is on the line, as is America’s wider reputation.

At his White House news conference Monday, Obama laid out a variety of potential consequences if no deal is reached in time.

“We might not be able to pay our troops, or honor our contracts with small business owners,” he said. “Food inspectors, air traffic controllers, specialists who track down loose nuclear materials wouldn’t get their paychecks.” And more that might or might not occur.

But benefits for retirees and veterans, as he told it, were sure to lag “if congressional Republicans refuse to pay America’s bills on time.”

If that happens, though, it will be partly his call too.

In CONTROL, Glenn Beck presents a passionate, fact-based case for guns that reveals why gun control isn’t really about controlling guns at all; it’s about controlling us. Find out more HERE.

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Comments (63)

dublinthewagons
Posted on January 15, 2013 at 9:24am
What is wrong with borrowing money to pay your bills when in debt $16+ trillion?
The American public that voted for THAT GUY doesn’t have a clue as they have never earned much of anything.
The real question is borrow from whom? When all lenders have shut you off the tiet
Its not a crisis. its a smoke screen. The crisis happened long ago with their spending.
There are no grownups in Washington and not many out here.
Ah the value of the dollar. LMAO

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- Darla_K
  Posted on January 15, 2013 at 10:43am
  Yes, and to think that people are stuck on stupid voting these idiots in that don’t have a clue. These people work for us, but their pompous oss attitudes suck. Let’s take Obama for example: He has been voted in for 2 terms, but he doesn’t work for the people at all. He has his own agenda, destroying our country and padding the pockets of the loons, giving away freebies to the “under privledged” and the lazies, leaving the hard working people vulnerable in every aspect. I had once hoped that we would be taking our country back 2012 but now we are having to fight for every bone we get. Enough is enough.
  
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Kolbie
Posted on January 15, 2013 at 9:20am
Within the article we read…Treasury’s inspector general reported …“there is no fair or sensible way to pick and choose among the many bills that come due every day.”

So POTUS announces that the first things we will not pay are SS benefits, VA compensation, and other items that are sure to raise the blood pressure and ire of “normal Americans.”

So, using those thoughts and words of wisdom, my wife and I can go to a 5-Star restaurant three times a week, the movies every evening, a weekend get-a-way twice a month, and then…. put the house payment, gas, electric, water, and groceries all on the credit card. After all, we do not have a spending problem, we are doing our fair share by supporting the economy with our sacrifices.

The Senate has not passed a budget in over three years. How about we start there and really determine what is a obligation, a “NEED”, a want, a desire, and a “pipe dream wish”.

I loved the way POTUS would deliver his polished statements, lower his head and give the camera “the look” during his presser. I really thought he was going to have to wipe away a few tears at the mere thought of not getting his way.

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- Xyskalla
  Posted on January 15, 2013 at 10:05am
  It’s a standard tactic. Cut the most essential services first while keeping all the waste and abuse, and soon people will be screaming at the Republicans to cave in.
  
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TIMEBOMB
Posted on January 15, 2013 at 9:20am
Don’t you love it when a plan comes together my servants? As your magnificent gay Marxist ruler I want my slaves to know that while you’re starving and freezing to death me and my beard and two illegitimate kids will be living in the lap of luxury. I’ll also have the perk of my rugged SS men and the occasional young male intern. It’s hard work destroying a constitutional republic,transforming it to a democracy then a dictatorship,you’d think you’d be more appreciative of the skill that it takes to pull off such a feat.

I did have some help though I didn’t build that on my own,no I was assisted by millions of idiots who have no idea of what they even lost. I’m going to plunge you into a depression so ghastly in nature that it’ll be shocking even to the most hardened among you. I’ll have to start off by disarming you and that should be easy since most of you don’t even know you have a my mortal enemy given right to firearms not a government given right. Mass starvation and violence and then I’ll crack down on you and show you how a real tyrant deals with dissent. Children will inform on their parents for a few crumbs and it’ll be hell on earth. Not long now pops,our plan is coming together and I’ll be sending you millions of souls soon.

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- ArmedAndReallyPissed
  Posted on January 15, 2013 at 9:35am
  I believe you.
  
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- ForestHollow
  Posted on January 15, 2013 at 9:58am
  Unfortunately you are absolutely correct. This guy is really scarey and the dumb population is just following his actions.
  
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- Liberalismsamentaldisorder
  Posted on January 15, 2013 at 11:51am
  You’re right on.
  We’re in deep doodoo
  
  Report this comment
TommyGuns
Posted on January 15, 2013 at 9:05am
I seem to recall that the Social Security and Medicare trust funds are holding an enormous amount of government bonds in lieu of the cash that people paid into them over the years. Now, unless I’m mistaken, between selling the bonds on the open market, and current flow of revenues into both of the trust funds, there should be no problem paying out on these programs. But that raises an interesting question or two. Are there really bonds in the trust funds that a negotiable instruments? Is the Congress and the President going to use the week to week influx of FICA and Medicare monies to fund other government operations instead of paying out to the recipients?

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raabhimself
Posted on January 15, 2013 at 9:04am
Does anyone remember that he uses the same scare tactic everytime the talks come up?

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loriann12
Posted on January 15, 2013 at 9:02am
If the government funds research into the spotted owl, and doesn’t pay it’s veterans and seniors, there will be a revolt. When my income is cut down, I have to determine what to get rid of, prioritize. I wouldn’t choose my “allowance” (or the fluid money that I pay myself and usually spend on clothing or frivolous stuff) over the electric or mortgage…..

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bigbear_awake
Posted on January 15, 2013 at 9:02am
need to start a link on white house site to petition for defunding Obama’s and the rest of Washington’s politicians checks

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progressiveslayer
Posted on January 15, 2013 at 8:55am
It doesn’t work the way the Marxist heathen is claiming,I know big surprise he’s lying. The federal government can’t go bankrupt because the fed will continue to digitize money out of thin air. Everyone will still get paid it’s just that the dollar will be worthless soon because of the insane practice of the fed monetizing the debt. We’ll still be paid we just won’t be able to buy anything with it so there’s going to be pain,for us serfs of course and not the ruling class.

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Snowleopard {gallery of cat folks}
Posted on January 15, 2013 at 8:52am
Here we go again with the leftists playing the FEAR and the DOOM and GLOOM cards targeting the seniors, disabled and veterans across the board. Nothing changes as they attempted the very same tactics with the last debt ceiling battle.

The reason they use them so well is they work.

Create a problem (the democrats say ‘end of the world is at hand for YOU!’)
Have a solution in hand (I can solve this mess for YOU)
Blame another (Republicans in this case, blamed by the Democrats)

That is the Standard Operating Procedures for dividing and conquering one portion at a time. Fear is used for control and to gain power over the people for a crisis the left has orchestrated to use for their own advantage.

The Republicans need to understand and hold strong to no debt-limit increase w/o spending cuts cast in iron.

Do not be shocked if Obama carries out his unspoken threat and orders all payments to disabled, seniors and vets to be ‘delayed’.

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- drbage
  Posted on January 15, 2013 at 9:14am
  Or to quote Rambo Rahm, never let a good crisis go to waste. If you don’t have a crisis, then create one. The irony I see in Nerobama’s threats about non-payment or delayed payments is the tacit admission that the government has been raiding the SS Trust Fund for purposes other than social security payments.
  Another question I would have loved to hear the “dodge and weave” answer to during the “presser” would have been a request for him to define exactly what he and his acolytes, both elected and non-elected, mean by the term “fair share?” Once he finished avoiding the answer, I would have appreciated a follow-up question, requesting him to define what the “fair share” is for those who pay no taxes.
  
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- progressiveslayer
  Posted on January 15, 2013 at 9:37am
  SNOW He’s the divider in chief,class,race you name it and he’ll never stop doing it.
  
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DZ-015
Posted on January 15, 2013 at 8:52am
The first thing to cut would be the pay of all elected officials and all “supergrade” federal employees down to minimum wage. Then wait for a solution to the spending crisis to emerge.

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bigbear_awake
Posted on January 15, 2013 at 8:49am
that guy never LIES ONLY when he OPENS HIS F’IN MOUTH

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Dismayed Veteran
Posted on January 15, 2013 at 8:41am
I am a disabled vet and collect Social Security. I am not scared of the boggie man. Stop payment. So what. I’d rather have my Constitutional Republic back.

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- beaverjarhead
  Posted on January 16, 2013 at 11:12am
  amen brother.
  
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john vincent
Posted on January 15, 2013 at 8:39am
The headline reads ‘Obama being ‘dishonest’ about SS.

I would say that is a rather kind word to use.

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Chromo200
Posted on January 15, 2013 at 8:34am
But he will get his check first and gets to go golfing too, while we suffer.

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SpankDaMonkey
Posted on January 15, 2013 at 8:32am
.
Note to the AP Old Purple Lips lies all the time……………..

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Eastinfection
Posted on January 15, 2013 at 8:29am
If government benefits ever get delayed for any reason, the first to go unpaid should be current elected official’s salaries, and former elected official’s pensions.

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- Snowleopard {gallery of cat folks}
  Posted on January 15, 2013 at 8:56am
  Agreed.
  
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truthspeare
Posted on January 15, 2013 at 8:29am
Sometimes, January 2013

I. Prologue:

Spending the day in the sun with a thief stealing your soul
The light shining on unseen thoughts ripping you apart
Awaiting for some passerby to listen to your cries
Telling the whole world why they are being told outrageous lies

That the foundation of what gives all stability
Like soil in liquefaction is running loosely down a hill
No matter how their philosophy
Or the effect of their doctor’s stabilizing pill
The glue is melting that holds together our society

You curse and you scorn but what is the point
Most would rather have a drink or hit on a joint
People now covet all of your property
And through the government will take it from you

They say it is fair due to their thinking
For you have more than they do now
That you or your family earned it means nothing
What they do or earn is irrelevant somehow

So long as the wolf is not at your door
Why would you ask for more
So long as they now have
All the excess that you had before

As to your future they do not care
So long as they can drink and smoke
As they mock your family and joke

Unless you stop the flow of cash
Limiting their inebriating stash
Then to call you names and selfish
While putting you to the lash
Yet not providing a scrap for your dish

II. The Past

When the Indians enslaved Sacajawea
From the Rockies to the prairies
She wanted freedom again to see
But her captors had other things in mind
And she learned working for

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- truthspeare
  Posted on January 15, 2013 at 8:30am
  And when African Americans fought
  For the British in the Revolutionary War
  They wanted nothing more
  Than what freedom had in store
  
  And for those in the South bound in chains
  Singing of chariots swinging low
  They hoped of a land of freedom
  Where they could go
  A place to be free
  Where the share of their labors
  Could be kept free of tyranny
  
  III. All Past is Prologue
  
  And now we find today
  A tax code so astray
  Where a few percent of Americans
  Pay for everyone the politicians represent
  
  And yet a majority of Americans
  Red, yellow, black and white
  Somehow agree this is right
  Yet know within this is a degree of spite
  
  And so the question remains
  Have we now in America
  Made prologue or past
  And will tyranny replace freedom
  And again put chains on like the past
  To those who labor who once again pray
  For sweet chariots to take them to kingdom come
  
  Copyright, Sometimes, January 2013
  
  Report this comment
GoodCook
Posted on January 15, 2013 at 8:27am
Typical lies from this radical tryranical dictiorial Democrat.

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dustbunnieskill
Posted on January 15, 2013 at 8:26am
lord-masta has spoken.So sayith the anus under his nose.Amen.

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kaydeebeau
Posted on January 15, 2013 at 8:26am
Oh for crying out loud – responsible people do this exercise every day. It is called priotizing – I pay the rent, utilities, food and fuel – I get rid of the telephone, the cable, recreation that has a cost, manicures,

Maybe they should talk to my Mom about budgeting and priotizing expenditures….

There is an epidemic of idoacy in DC and the surrounding beltway

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- progressiveslayer
  Posted on January 15, 2013 at 8:36am
  We could save billions by eliminating several unconstitutional agencies,DHS,HUD,EPA,IRS,TSA,help me out here I know there’s many more.
  
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- huey6367
  Posted on January 15, 2013 at 8:45am
  @Progressiveslayer
  
  EEOC, Affirmative Action, HUD, EPA, DHS, Dept of Education, Federal Reserve – for starters
  
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- ArmedAndReallyPissed
  Posted on January 15, 2013 at 8:49am
  Where are all the TROLLS to defend the Führer now ?
  
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- Vickie Dhaene
  Posted on January 15, 2013 at 9:40am
  No more paid vacations. No more limos with drivers. No more first class airplane rides. No more Government accounting offices, because we know they can’t count., etc…..
  
  Report this comment
- ReggieMay
  Posted on January 15, 2013 at 11:33am
  Immediately suspend foreign aid payments to Mexico. We already support 10% of their population. That’s enough. Second, no more Obama family vacations, ground Air Force 2. Then stop all payments to “green” programs” including Solyndra.
  
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ArmedAndReallyPissed
Posted on January 15, 2013 at 8:26am
Obama’s Surprise Presser: Debt Limit Has Nothing to Do With New Spending, Won’t Negotiate ‘With a Gun at The Head of The American People’……………………………………………………………………….

READY-AIM-FIRE

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ares338
Posted on January 15, 2013 at 8:26am
How about Obama’s and the rest of Washington’s politicians checks being late? Something might happen then. Naw…..they are already rich off of thenbacksbof the citizenry.

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Shamrock241
Posted on January 15, 2013 at 8:20am
Typical scare tactic by Odumbo But benefits for retirees and veterans, as he told it, were sure to lag “if congressional Republicans refuse to pay America’s bills on time.”

Please call his bluff you spineless Repubicans and if the checks are late be very vocal and specific on why this is all Odumbo’s fault.

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Ripped
Posted on January 15, 2013 at 8:20am
0bama is just your typical fear monger politician/compulsive liar. I never have taken much of what he has said seriously.

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RJJinGadsden
Posted on January 15, 2013 at 8:18am
I swear that I heard 0bama make the same threats last year. Okay, might have been the year before, but he has done this before. Sort of like cities that want to raise taxes and never to threaten to lay off highly paid friends in do nothing positions, they threaten to lay off cops, firemen, and teachers.

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- ArmedAndReallyPissed
  Posted on January 15, 2013 at 8:31am
  I think your right that it was just last year this Pig did the same thing……and threatened to stop payments to our Troops as well.
  
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- HeavenlyMinded
  Posted on January 15, 2013 at 8:42am
  I was just going to say this….didn’t he try to pull the same crap last year?
  
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- RJJinGadsden
  Posted on January 15, 2013 at 8:58am
  Apparently, this is 0bama’s only attempt at an annual budget.
  
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- ArmedAndReallyPissed
  Posted on January 15, 2013 at 9:16am
  And i know that you know this already. I’m just Venting. Sorry. My hatred for this MF is hard to contain.
  
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- progressiveslayer
  Posted on January 15, 2013 at 9:27am
  Gentlemen, Barry Soetoro isn’t interested in a budget at all,he’s using the Cloward and Piven strategy to collapse the system. He’s added millions to welfare,increased spending in a recession and forced government health care on us. No that Marxist POS is deconstructing America by design.
  
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- ArmedAndReallyPissed
  Posted on January 15, 2013 at 9:40am
  Exactly SLAYER. Exactly right.
  
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