The End of The Road? – 07/17/11

Dear Ladies and Gentlemen,

For Your Information (FYI) and why we are still a long way to resolution…….:+(

http://www.msnbc.msn.com/id/43769894/ns/business-eye_on_the_economy/

“For  August 2011, the Treasury projects it will take in roughly $172.4 billion to cover $306.7 billion worth of spending that, by law, it has to pay. To demonstrate what those choices might look like, Jerome Powell and his colleagues at the Bipartisan Policy Center took a look at how far the money would go. ”

“They started with the widely held assumption that interest on the debt ($29 billion for August alone) would be paid first, thus avoiding the disastrous impact of a default. ”
“The rest of the incoming cash would cover a month’s worth of Social Security ($49.2 billion), Medicare and Medicaid ($50 billion), veterans affairs programs ($2.9 billion), education and tuition programs ($14 billion), housing assistance for the poor ($6.7 billion), food stamps ($9.3 billion), and unemployment insurance ($12.8 billion). ”

 

“That’s where the cash runs out and the list of unfunded programs begin. There would be no money left for defense contracts ($31.7 billion) or military active duty pay ($2.9 billion). ”

 

“The Department of Justice ($1.4 billion) would close, shutting down the federal court system and halting operations at the Federal Bureau of Investigation. So would the Department of Energy ($3.5 billion), including national nuclear energy programs. ”

 

“The Transportation Department ($1.3 billion) would cease functioning, including the Federal Aviation Administration and air traffic control system. So would the Centers for Disease Control ($0.5 billion). ”

 

“And there would be no money to cover tax refunds ($3.9 billion) from the IRS. Even if there were, there would be no federal workers ($14.2 billion in salaries and benefits) to mail the checks. ”

 

“On Wednesday August 3, the day the government is expected to run out of cash, the Treasury expects to take in $12 billion in revenues, according to Powell’s analysis. But it also has to cover $32 billion worth of bills coming due that day, including $23 billion in Social Security payments. With only enough cash to cover about half those checks, there is no legal framework for deciding which retirees get paid and which don’t. ”

 

“The next day, Treasury expects to collect just $4 billion to cover another $10 billion in bills. On August 5, there’s only $7 billion coming in to cover $12 billion in scheduled payments. By the end of the first week of the government’s cash squeeze, roughly $7.5 billion in Medicare and Medicaid bills would have gone unpaid, along with $4.8 billion worth of defense costs.”

 

” Some opponents of raising the debt ceiling suggest that it will force the government to make spending cuts that Congress and the White House have been unable to make.”

 

Will the US default just to force Congress and White House to make spending cuts…………?????!!!!! (to be continued)

 

Cheers! the New “Days of Our Lives” at the US Congress Near You, Soon! ;+)

 

Big Hugs and Kisses to All! ;+)

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