You getting paid next month?

President Obama has stated that if the debt ceiling isn’t raised that Social Security and veterans checks might not go out! This could happen but only if Obama directs Treasury not to pay those checks. So I think this is a very clumsy threat and would prove the SS lock box is a myth. Plus you have to remember that SS also includes disability payments and that has grown very large in the last few years. So we are looking at a significant part of the population completely dependent on the checks. Very little would go into the Medicare system because SS takes about $125.00 per month from each check to pay for it, no check, no medicare payments! If I am reading the stats from Social Security there are about 55 million people receiving some kind of benefits.  I can’t find the numbers for vets but I’ll guess about another 5 million to give us a round number of about 60 million US citizens who won’t get paid in Feb/March in 2013.  That would be a lot of very angry as well as desperate people to try and contain. Not to mention all of that “money” that can’t be spent, would really hit the local business of towns and states very hard.

But lets just say the Bamster follows through and no checks go out and you, like me are on SS or vet benefits what are you going do to deal with no money hitting your bank account?  Do you have an “Emergency fund” that will cover your bills for at least a month or more? Rent, Utilities, because if you pay late you will get hit with higher fees. Perhaps they will charge you extra to reconnect your basic utilities.   Is your phone or cable/internet under a contract? There is usually a big penalty for canceling those items under contract. If you don’t pay your car insurance on time, you often have to pay a higher premium because the insurance lapsed.  It can get very expensive, very fast if you don’t pay your bills on time.  You don’t want to get caught by those payday/title loans because the the interest will just crush you and that’s if they accept that SS will start paying you again in a month or two.

I figure it is time to do another test this one will be financially based. While I don’t think the PTBs will follow through on this threat. Let us imagine you know the Stock market crashes and there is a bank run on Feb. 15th and you have about 30 days to get ready.  Think about what your plan would be to deal with all banks and ATM shut down for a week.

My Plan:

  1. I have already started paying a few bills a month early. Nothing big, just things like car insurance, Sat TV, my internet. None of these bills are under contract so I can cancel them if needed with no penalties.  I have plenty of DVDs, books and projects to keep myself entertained. Paying an extra $26.00-$50.00 a month is a lot easier than trying to make an extra house payment.
  2. Being debt free is a huge help in this situation but if you are still working on those debts an option could be to make a smaller payment and stash some cash away for next month’s payment so you don’t get hit on penalties or interest. Or you could pay ahead on next month’s payment and save some interest costs.
  3. I will make my power payment this month and I have a backups for heat and water. But my water and trash bill comes due in the middle of Feb. so I’ll pay that bill early.  I have added plenty of fuel for cooking, heat and lighting already on hand for a couple of months. I already planned to top off the gas tank this week and get another jug of gas so I should be able to go without buying any gas in Feb.
  4. Food: I have few little sale items I want to get like some canned dog food on sale at Family Dollar, add a little more Toilet paper from Big Lots and some more cold remedies from the Dollar stores.  The big item will be getting the grains to start my first 55 gallon drum as well as the cost of the drum itself.  I don’t see any reason to change that part of budget.
  5. I have an “emergency fund” and could pay all my bills for a couple of months. But I prefer to do everything I can without touching the “fund”. Because if the idiot PTBs do go through with this brilliant plan things could get real ugly, real fast! If you can keep  some “Mad Money” of a couple of 20 dollar bills in your wallet/purse just in case they are that stupid.
  6. Overall I don’t need to change all that much on my budget. I’m kinda sorta planning on getting my vet benefits on the 1st of February but just to cover paying a bit extra on some bills and if I find out I have missed something or sales. You can’t get crazy or go into a panic like have seen with guns and ammo. If you can’t get something you need on hand, suck it up that you missed it and start working on a way to mitigate the problem. I don’t think I will ever get everything I need or want, but I think I have enough for a short term disaster and the tools/skills on hand to keep working on long term solutions.

Even if you don’t get any of these benefits you need to plan ahead. These are people who tend to spend the money as soon as they get it and live paycheck to paycheck. They won’t be going to the store, the gas station, the local restaurant. Power companies and all utilities will also lose a lot of revenue and taxes won’t get paid. Hospitals and doctor offices won’t be seeing those patients, car insurance and garages won’t be seeing any work from these people either.  That is why I think this threat from Obama is stupid at best and dangerous at worse, because this could crush the US economy. Just look at Greece  for an example and all they did was reduce payments and people are cutting down trees in the park trying to stay warm and can’t buy an aspirin tablet at any price.


25 Responses to You getting paid next month?

  1. Craig Cavanaugh says:

    Just hollow threats from a hollow man, I reckon. Scare tactics. A sparklie to distract folks from the gun grab…

  2. Jamie says:

    Craig you might be right or the gun grab is just a distraction or Sparklie to distract from the economy.

  3. dee says:

    Amazing. All these decades we never made the debt ceiling passage an issue.The president was not the one trying to use this as abargaining point. It is Congress.Obama is telling us the result of such folly. These threats to shut down Congress(ie Marsha Blackburn R.-TN), are foolish. This for past spending, pay the bills. Then they should work on cutting future spending.

    • Jamie says:

      Now dee, Obama says we don’t have a spending problem and not passing a budget the last 3 years and keeping all spending at 2008 budgets plus TARP and add in Obamacare is no big deal.Which were all started in 2008 by GW Bush and Hank (Tanks in the street) Paulson. I think all the PTBs are at fault, but it was Obama who decide this would be a bargianing Chip for the debt ceiling fight. I don’t think the debt ceiling is nothing more than an BS for the Congress to placate the masses and pretend that they are doing “something” about spending.
      Both the Repubs/Democrats, Congress, the President as well as all of the government are guilty of being tax and spenders. This is the same game played by Clinton and Gingrich back in the mid 90’s except with a lot more debt.
      It’s not about Red team/ Blue team, R or D or liberal against conservative. The USA is beyond broke!
      I think we need at least a 5-10% cut in all benefits paid by the Government. A real cut, not a “we will not grow as fast in the future” cut. For everyone from the SS, to military to government workers to welfare. Of course it will be tough and some will be hurt, but it must start somewhere and it needs to be across the board. A flat tax of 10% for individuals and 20% for corperations and land/property taxes get an exemption. We waste to much time and energy filling out tax returns and most of loopholes are written by lobbyists to give those that can afford to buy congress critters, tax atty. and keep accountants a job. Stop all government subsidies to farmers, green companies, businesses and corperations.If this crap happen in the 1880’s we would be supporting the killing of whales and buggy whip manufacturers.

      • riverrider says:

        dee, obama used it as a bargaining chip when he was a rep. against fact he said it was “unamerican” to let the debt go beyond 4 trillion, now its 4 times that and he wants more. it has been used as such every since it began. its the only thing left keeping the dems from giving away more money like the “sandy relief” bill that has 40 BILLION in pork projects and 10 billion for the “victims”. obama thinks its okay, the taxpayers checkbook is unlimited. do some research before you drink the koolaid. should we be giving pelosi’s husband, a rum distiller, billions in taxpayer funds to promote his product? the “lady” from new hampshire got millions for her husband to improve his NASCAR track, another got billions for a fish hatchery in alaska, billions for the arbor foundation(a private charity) to plant trees, all added to the bill to “help the sandy victims”, who will never see any of the funds. and they went ballistic when a man of morals tried to add an amendment to demand cuts in other areas to pay for it…..does that seem right to you?

  4. Jamie says:

    dee, I figure you are an intelligent person and I bet you know where every dollar goes in you budget if not every penny. Yet the DOD loses track of several billion dollars spent on wars in Iraq and Afghanistan not munitions or fuel but “civil engineering/ democracy initiatives”. It’s just an oops for government workers or the pentagon. No biggie as Rumsfeld explained!
    Every person on the government dole costs about
    $60,000 per year, I don’t know about all the goodies others may get but I receive about $20,000 cash and health care payments per year in “benefits”. I’m darn cheap and will treat myself and buy medicine even if it is given away for free at the local health clinic. Though I did grab a couple of extra free masks at my local VA clinic over the last year.
    Just like the Hurricane Sandy bill passed in Congress over 50 billion dollars with money going to repair the Smithsonian Institute roof, Amtrak repairs/upgrades not in the NE and some dang fishing or other nonsense in Alaska. I’ll admit Sandy was a big storm and folks need help but I don’t think Alaska was hit by Sandy.
    I have to give back over $137.00 per month via my VA benefit check to pay back for the 10% disability rating the Army gave me when the kicked me out. So I’m still paying the the PTBs and my “tax” goes up directly with my COLA.
    I know my 5-10% idea of cuts for SS will effect me directly in an overall cut of $150.00-$200.00 per month and it will suck. I can handle it and still get by financially. But I much prefer eating 10% now rather than getting a cut of 25% or even 50% in another 5-10 years.

  5. riverrider says:

    as far as the check, well i saved about a years worth of cash from when i cashed out my tsp plan. btw, they announced this a.m. they were raiding the retirement accounts again to prolong the debt ceiling. i told you so. not directed at you, but my buds who still have tsp accounts. they just won’t give up on the chance to make a dollar, refuse to believe they could lose it all. ….when that runs out, i’ll eat everything in the fridge, cut the power, cut the landline,cable, maybe cell if i can keep the net. drop the car insurance,maybe homeowners. selling off my assault rifles and mags would give me another year of normal or several of shtf. then i guess since they are intent on making a criminal out of me i’ll have to oblige them by knocking off armored cars and hitting the federal reserves. si vi pacem, para bellum

  6. dee says:

    Thanks for the rational retorts or replies. I agree that the politicians grease the palms of their supporters and lobbyists. I agree that it has been done in previous administrations. Don’t agree with the flat tax rationale. My point was that the debt ceiling leverage nonsense was not initiated by the president, it is being used by repubs. The man modeled many of his starting first term agendas trying to be bi-partisan, and all he gets is opposition and vitriol. Been a political animal since I was active in teen political clubs in high school. Have voted for both parties. Perhaps because of the onset of social media, there has never been this level of divisive commentary and disrespect.
    As a small business woman (pharmacy), RN, and spouse of a veteran, daughter of an army retiree, I see the importance of those dollars being spent wisely. Thankful for Tricare for my widowed mom, and her SS. My hubby and I employ ten and yes I must watch all my dollars, and yet still donate to those in need,like riverrider, we have prepped for contigencies, paid business loan a year in advance, and have cash and unused line of credit on hand. If the govt shuts down, it will hit us with medicare, third party payors. It will
    still kick our butt, because of the trickle-down effect..
    The 51bil in the Sandy aid, SHOULD NOT have been loaded with pork , and I listened to Rep McIntyre’s defense of his failed bill to balance payments. Like the guy’s reasoning. he used fed assistance when business was flooded back in the ’90’s. The states of NY/NJ have been “donor” states all these years, and they should have been afforded faster funding than the 70+ days they waited. As a resident of LA, we have taken our share. I helped clean up after, Katrina,twice, and recently for Issac, and I have never seen such destruction and despair as citizens have to run the gauntlet to get assistance from insurance and to a lessor extent ,govt. We need massive overhaul of taxation process, etc, I like some of Simpson/Bole. I believe we should increase retirement age, and I am 60, and make around 200k. like you got clipped by the spayroll cut, but I knew that furlough was temporary, so I never counted the extra.
    Lastly, I don’t drink koolaid (okay I’m lying, just a little bit, watching the empty calories), but I’m a pragmatist, and know corruption will ever be with us, until He returns.

    • Jamie says:

      dee, I didn’t know about NY/NJ being donor states. That makes the bill even worse but I figured they would get something because they got “the power” to give it to themselves. After seeing how disasters last year were treated in flyover country I still get a bit peeved even though I was not affected.

      • riverrider says:

        yeah, we had 750,000 affected homes/businesses and were denied assistance except for a few bucks to the cities for cleanup overtime.they wouldn’t even fund the national guard to clear the roads…. gov’ner mcD had to resubmit twice to get that little bit. so you see Va is a “donor state” too.

    • Jamie says:

      dee, I’m glad you have your backups in place as you are in the cross hairs of getting hammered on your income because you are “rich” HA! I bet you don’t feel rich, comfortable maybe, but not rich! Yes I know you have “more” income than I do but I bet you have a heck of a lot more out go than I have as well. It’s all relative. It’s going to suck for the medical profession as Obamacare starts kicking in hard in 2014.

      If I could ask and you don’t have to answer, because it’s some professional advice that I can’t pay you for, but besides OTC medicines and getting healthy would you recommend anything specific in the first aid area for the average prepper should have on hand?
      I can get some plaster for casts for low cost and I already have a lot of soft splints, braces and bandages. Beyond the basic 1st aid kit but below a paramedic type kit. I have blood sugar meters, BP cuffs,stethoscopes and a few other scopes for trained medical personnel to use. I know enough to know I don’t know enough!
      I have thought about getting some adult diapers to aid a person if the become bedridden. What about old fashioned hot water bottles and ice packs? I have a lot of the chemical types packs if I lose power already on hand.

      • dee says:

        Obviously, I am sure you have glucose strips that go with those meters. Also ignore the expiration date on those strips, they will do an accurate job post expiration. Do you have those cinninsulin tablets? They have some efficacy in lowering blood sugars.( I am also a CDE- certified diabetes educator) Definite on those hot water bottles that can be used as ice packs too. Have bandanas they are great for so many purposes, splints, strainers/filter, etc. I go to at least one diabetes/ pharmacy business meeting yearly. I ALWAYS get the freebie samples they give out, and restock my 72 hr kit or medicine kit. So my drugs don’t expire, as readily. Sanitary pads are very absorbent, use as a drsg. Good thought about those diapers, i like the pull-up types better, my mom uses. Get burn lotions, there is a french one I used a while back, it helped a LOT for a burn I received , second degree -BIAFINE- french fire fighters carried it on their engines , they swore by it. Not sure if it is still available, though.
        Keep things to ward away unsanitary conditions. Learn rehyration techniques for dehyration/ GI distress. As we were cleaning moldy homes in LA, wearing those N-95 masks probably saved our lungs from infestation. I have IOSTAT for thyroid protection. Studies and experts I have talked to say they are still good after expiration dates. I hope I answers some of your questions.Oh yes, get a poison/ivy cream like-ZANFEL- not cheap but it works (cutting brush during Katrina clean-up)!
        I keep it stocked in our household, now. Caladryl is a waste of time. Benadryl tabs are always present for allergic reactions, it could save your life. I also like collodial silver, and started using essential oils, they are worth the investment.

  7. dee says:

    “Donor” meaning they give more money to the federal coffers, and rarely requested or need to take money for emergencies. I was not speaking of of greasing palms.

  8. riverrider says:

    just discovered thermite, the survival equivilant of duct tape:) check it out, then get some, lots of uses. (like burns thru tank hulls)

  9. Jamie says:

    river, I get darned upset when I think how DC claimed they were broke and had no money for all the disasters from the floods in ND to the tornado swarms and you own little Wind Tsunami and the wild fires in the west. I will agree we are beyond broke as a country. But then Hurricane Sandy’s total help is over 58 billion appropriated by congress in the last 30 days really torque’s me off.
    You be carefully with that stuff I hear it can be kind of dangerous though it’s really impressive what a person find out with a little research.

    • riverrider says:

      they passed 10 bil one day, then 60 bil this last time. total 70 bil. i guess they owe all these folks for stuffing the ballot boxes. funny, the original bill was 50 bil. their hypocrisy knows no bounds.

      • dee says:

        The first 9 bil was for replenishing the federal flood programs. They were out of money. I pay flood insurance on both a rental bldg we have, and our business site. I f i flood (not really likely) I want my money my premiums pay for. the 50bil was for Sandy damage. There were small bus owner who were needing those funds, inorder to be able to reopen for the spring tourist season. Because they waited so long, some of those owners can’ do it in time.

      • riverrider says:

        d, yes the first 10 was all the real vicims will ever see, in payments from the program…40 of the 50 bil was PORK. only 10 was actually for the victims, and now they are passing a law that only UNION contractors can get the money!!! we know how that goes. some mobster lines his pockets, nothing ever gets fixed. outright theft of taxpayer money. and the 70% non-union contractors are locked out of work. hardly seems like relief to me. i’d want every man on the job i could get.

  10. Jamie says:

    dee, thanks for those first aid ideas! I have never heard about “cinninsulin tablets”. My meter was when I was on the steroids after I got home from the VA so I never had a blood sugar problem it was more of a double check!
    I got a few of the of the other items like benydryl, but for skin irritations I went with a zinc oxide. I will start looking for those other items.

    • dee says:

      Checked out the BIAFINE, it is expensive and at times hard to get. I like zinc oxide, also have used LANASEPTIC skin protectant, white cream, little messy, but it does a good job. My hubby likes icthammol ointment for skin abrasions, cuts, boils, etc, it is cheap, brown and greasy, little goes a long way. Yeah, you don’t have to worry about diabetes, unless you are out of shape. Oh yeah! get a flu, pneumonia, shingles shot.
      You are welcome!

    • riverrider says:

      j, cinnamin capsules.

  11. Jamie says:

    dee, I saw the price on that Biafine I think I’ll stick with the zinc oxide for my preping on the cheap! On a lot of other prepping/survival blogs I know a lot of diabetics fear losing power and getting insulin so adding some of the “Real” cinamon tablets for type 2 would still be a good thing to stock. I know it’s a make do and not a perfect solution but better than nothing.
    I have quite a bit of oragel, clove oil, and Hydrogen peroxide for treating oral issues. I store powders for chafing and prickley heat/rashes and keeping feet dry. Though I need to get some more corn starch it’s a good multi-tasker from a dry shampoo to cooking.

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