month, the united states is going to take in something like $203 billion in revenue. but it s going to fall about $160 billion short of all of its obligations. 100 million, half of our revenue goes to the major entitlement programs right away, medicare, medicaid, social security, still another 50 billion or so will take care of the people who do business with the pentagon. and service on our debt. and basically we re going to be, if you start the calculations on august 3rd, the day after the deadline is met, and there is no deal in place, you are looking at 135 billion in the red. so who would we pay first? much as it might go against our grain, we would pay the debt service first. and so the saudis and the chinese and the other foreign creditors would be the first people to get a check from the treasury just because everyone agrees republicans and democrats alike that the future, if we don t service that debt, is very bad for us indeed. after that, social security would probably get p
consequences, well, they ve been described a whole bunch of different ways. james rosen, we ve heard dire, armageddon, chaos, and we ve also heard may not be that bad. reporter: no one is using the word sugary, we should point that out. through the eyes of president obama and be what happens if he and lawmakers fail to raise the debt ceiling before august 2nd. as the president surveyed, what the country is taking in and bills it s paying out, he could face a slew of agonizing decisions. first, the revenue side. treasury data from august 2009 and 10 was used to project what uncle sam will take in next month, about $203 billion for the month. but let s look at what we have to pay out, about $100 billion gets gobbled up by medicare, medicaid and social security. another $60 billion roughly would take care of the people who do business with the pentagon and the interest we owe
month of august, coming up next month, the united states is going to take in something like $203 billion in revenue. but it s going to fall about $160 billion short of all of its obligations. 100 million, half of our revenue goes to the major entitlement programs right away, medicare, medicaid, social security, still another 50 billion or so will take care of the people who do business with the pentagon. and service on our debt. and basically we re going to be, if you start the calculations on august 3rd, the day after the deadline is met, and there is no deal in place, you are looking at 135 billion in the red. so who would we pay first? much as it might go against our grain, we would pay the debt service first. and so the saudis and the chinese and the other foreign creditors would be the first people to get a check from the treasury just because everyone agrees republicans and democrats alike that the future, if we don t service that debt, is very bad for us indeed. after that, soci
and lawmakers fail to raise the debt ceiling before august 2nd. as the president surveyed, what the country is taking in and bills it s paying out, he could face a slew of agonizing decisions. first, the revenue side. treasury data from august 2009 and 10 was used to project what uncle sam will take in next month, about $203 billion for the month. but let s look at what we have to pay out, about $100 billion gets gobbled up by medicare, medicaid and social security. another $60 billion roughly would take care of the people who do business with the pentagon and the interest we owe on our debt. but you ve also got federal salaries and benefits, about 15 billion. how about a helping hand to the 14 million unemployed people out there? tuition money, temporary assistance for needy families, paychecks for our active duty soldiers, veterans programs, that s about six billion for the
everybody, including you. and i m not worried about that. but, i am worried about some citizens, believing this is a phony deal. that the united states will not suffer economically if no debt ceiling rise comes. in and i wanted to get your opinion on that. look. here is the reality. the federal government is anticipated to receive $203.3 billion in revenues in august. the outflows, the entire federal budget is programmed to spend $362.7 billion. that means if you don t have a deal, and you have to live within the $203 billion you get, you have to cut $159.6 billion out of the federal budget in one month alone. that means, look, you can pate interest on the debt. so we don t default. can you pay social security checks. can you pay the checks of the active military. but you cannot find 45% of the federal budget that you can cut overnight without having consequences. i mean, brit hume for example i