The war and its reverberations in the Asia-Pacific region – as well as the growing contest between the United States and China – will be overarching themes at the security summit, the sidelines of which have long provided a platform for top security officials to meet face-to-face.Īttendees are expected to include US Secretary of Defense Lloyd Austin, Chinese Defense Minister Li Shangfu, Australian Prime Minister Anthony Albanese and Ukraine’s Defense Minister Oleksii Reznikov. The grinding conflict in Europe may also accelerate trends in the Asia-Pacific region toward increased military spending and efforts to develop military capabilities, said a report released Friday by the International Institute for Strategic Studies (IISS), which hosts its annual Shangri-La Dialogue in Singapore this weekend. Because of that reduction in what’s known as “intragovernmental debt,” the payments have little net effect on the total amount of debt subject to the limit.China remains the “leading long-term challenge” to the existing international order and there is no evidence that Russia’s faltering invasion of Ukraine has changed Beijing’s thinking around “the timescale or methodology” for any potential attack on Taiwan, a top strategic think tank said ahead of a regional security summit in Singapore. But the payments reduce the balance in the trust fund, which consists of Treasury securities, according to the Congressional Budget Office. When it comes to Social Security, Treasury obtains cash to pay benefits by borrowing from the public. But since the nation hit its $31.4 trillion debt ceiling, it cannot add to its borrowing until Congress addresses the cap. Since the US takes in less revenue than it needs to pay its bills, Treasury must borrow to cover all its obligations. Though it’s not known exactly how the Treasury Department will handle making payments with the funds it has on hand, the agency may ultimately decide to prioritize Social Security benefits – though likely after it has paid interest and principal on the nation’s debt.Īlso, it’s possible the Treasury Department could continue making on-time payments because of the entitlement program’s trust fund, said Shai Akabas, director of economic policy at the Bipartisan Policy Center. It is possible that Social Security beneficiaries could be shielded somewhat from the full impact of the US defaulting on its obligations. “I am very, very concerned about what this will do to our financial industry, as well as to our benefits,” she said. Many are not only concerned about their benefits, but also that a potential stock market drop triggered by a default could decimate their retirement savings. Older Americans are more aware of the debt ceiling battle – and the potential delay in payments – this time than they were during the last major standoff in 2011, thanks to the internet, said Mary Johnson, Social Security and Medicare policy analyst for The Senior Citizens League. He has tried to reassure folks that they will receive their full benefits eventually. “If you depend on your Social Security for most of your living expenses, you’re not going to be able to pay your rent, buy your food, pay your utilities, the basics … pay out-of-pocket health care costs that may come up.” “A lot of people in Washington are not that in tune with what this could mean,” he said. But that’s not possible for many recipients. Max Richtman, the committee’s CEO, has been telling members to try to set aside some money to have a little cushion if their June benefits don’t arrive on time. The average benefit for retired workers is $1,827 a month in 2023. Many senior citizens are already growing worried, especially in the past week or so as the deadline grows closer, advocates say.Īlmost two-thirds of beneficiaries rely on Social Security for half of their income, and for 40% of recipients, the payments constitute at least 90% of their income, according to the National Committee to Preserve Social Security and Medicare.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |