3 $50 billion in Medicare and Medicaid payments, $31.7 billion for high-priority defense-vendor obligations, and $12.8 billion in unemployment insurance benefits. Then, the center suggested, might come $49.2 billion for Social Security payments, some $23 billion of them due to go out on Aug. Topping its list was the $29 billion due in interest on Treasury securities. Tom Daschle and George Mitchell - did a speculative rundown on how the government might spend that $172.4 billion absent a debt-limit deal. Howard Baker and Bob Dole and former Democratic Sens. The Bipartisan Policy Center - founded by former Republican Sens. 31, but is scheduled to pay out $306.7 billion, suggesting a shortfall of over $134 billion. The remaining $4.6 trillion in debt represents "intergovernmental holdings," money one governmental entity owes to another, including assets held in the Social Security Trust Fund.Īccording to Treasury figures, the government will take in $172.4 billion from Aug. Holders of these securities range from individuals to pension funds, corporations, and foreign governments. Of today's $14.3 trillion national debt - the accumulation of decades of deficit spending - some $9.7 trillion is financed through the sale of Treasury bonds, bills and notes to the public. You can still spend money up to the amount of revenue you're bringing in. "This is not like when you shut down the government. "Most people in the bond market feel the bonds will be paid off, that they will get priority in payment" said David Wyss, former chief economist at Standard & Poor's. There is wide agreement that the government would take pains to avoid an actual default on its debt by putting interest payments to bondholders at the top of the payment priority list. 2 deadline approached, perhaps over the weekend. But White House spokesman Jay Carney said Treasury would release some details on payment priorities as the Aug. They're hoping for a compromise soon so it won't be necessary. So far, officials have refused to provide details, knowing it could touch off a firestorm. Treasury, working with the White House budget office, has sketched out a priority plan for payments. "There are plenty of ways out of this mess, but we are almost out of time," Obama said, noting the Tuesday deadline. President Barack Obama warned anew that the credit status and financial credibility of the United States stand in severe jeopardy. Just five days before the Treasury begins running out of cash to pay all its bills, Congress remained deadlocked over plans to both raise the debt limit and trim federal spending. now borrows slightly over 40 cents for every dollar it spends, a failure by Congress to increase the debt ceiling above the $14.3 trillion limit suggests the government could renege on more than 40 percent of its current obligations.
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