Obama: Default Would Interfere With Social Security Checks

Posted July 12, 2011 at 4:04pm

President Barack Obama warned Tuesday that Social Security and other payments to the public may be interrupted if the nation’s debt ceiling is not raised by Aug. 2.

“I cannot guarantee that those checks go out on Aug. 3 if we haven’t resolved this issue because there may simply not be the money in the coffers to do it,” he told “CBS Evening News.”

The Treasury Department forecasts that it will no longer be able to extend its borrowing authority and that the United States will default on its debt on Aug. 2 if lawmakers do not act to raise the ceiling. Social Security checks won’t be the only payments in jeopardy if that happens, Obama said. Disability and veterans payments would also be affected.

The show posted the interview clip on its website, and the full interview will air on television Tuesday evening.