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Thursday, May 19, 2011

Social Security Law: US Congress Undecided on Raising Debt Limit

The clock is ticking and will soon strike deadline, yet the US Congress has remained undecided on raising the debt limit.

A few days ago, US Treasury Secretary Timothy Geithner has announced a probable default on paying creditors should Congress fail to raise US legal debt limit. Geithner warned legislators to act on or before August 2 to resolve credit dues. However up until now, Congress has remained indecisive on how to address the fiscal mishap.

Geithner have set in motion measures to give Congress more time to adjust the debt limit. He presented proposals on how to secure payments for retirees and creditors. The adjustment on debt limit is expected to allow Social Security Administration to provide basic health care and allowance without neglecting paying credit dues.

The $14.3 trillion debt is expected to surge by $2 trillion more in 2012. The 11-week reform deadline aims to prevent a default and exhaustion of Medicare Trust Fund. Also, the adjustment seeks to halt an impending exhaustion of Social Security fund reserves by 2036.

Geithner reported $49 billion as Social Security's spending for 2010. It hit the highest record since 1983. He informed Congress that Social Security can only pay disability benefits until 2018. He explained that current long-run SS programs are no longer sustainable. He reiterated on the necessity of legislative modification to regain income and control spending.

The current buzz on Social Security bankruptcy has sparked bad remarks from Social Security claimants. Critics commented that Social Security should manage to provide cost-effective health care without compromising credit obligations.
Should Congress remain indecisive on raising the US debt limit and fail to meet Geithner’s deadline, the economy will further collapse and end Social Security benefits.

Seems like a do or die option for legislators, but as majority has known it— the country is at the brink of economic catastrophe. Expect the worse, hope for a reform.

To learn more on Social Security claim, you may call Mesriani Law Group number at 1-866-772-2889 toll free. You may also send an email at for free case analysis.