1. Dire

    Obama Warns of Debt Stalemate

    FILE - In this Feb. 11, 2005 file photo, trays of printed social security checks wait to be mailed from the U.S. Treasury's Financial Management services facility in Philadelphia. Big job losses and a spike in early retirement claims from laid-off seniors will force Social Security to pay out more in benefits than it collects in taxes the years 2010-2011, the first time that's happened since the 1980s. The deficits _ $10 billion in 2010 and $9 billion in 2011 _ won't affect payments to retirees because Social Security has accumulated surpluses from previous years totaling $2.5 trillion. But they will add to the overall federal deficit. (AP Photo/Bradley C Bower, File)

    Bradley C. Bower, File / AP Photo

    President Obama will not promise that Social Security checks will go out on August 3 unless a deficit-reduction deal is struck. "I cannot guarantee that those checks go out … There may simply not be enough money in the coffers to do it,” he told Scott Pelley of CBS News on Tuesday. “This is not just a matter of Social Security checks,” he explained. "These are veterans’ checks, these are folks on disability and their checks. There are about 70 million checks that go out.” Meanwhile, Senate Republican leader Mitch McConnell said that he does not think a significant reduction deal can be reached as long as Obama is in power. He said, “After years of discussions and months of negotiations, I have little question that as long as this president is in the Oval Office, a real solution is probably unattainable.”

    Read it at CBS News