I understand the liquidity issues that go into cutting those millions of checks, but I think stating this as he did is a major miscalculation by Obama. Progressives have been arguing for months and months that Social Security does not directly impact the debt. Yet one of the first things Obama admits will be impacted by not raising the ceiling is… Social Security. That’s going to pop all sorts of balloons among the punditry and the blogosphere. Social Security, theoretically, is drawing its funds from an independent trust that its recipients have already paid into. To admit that there won’t be money in the federal budget to cover those checks is a concession to the Republican arguments that Social Security is the federal budget’s pair of concrete slippers they say it is, a concession to their argument that Social Security ‘coffers’ are filled with IOUs. I’m, frankly, surprised that conservatives haven’t jumped all over this.