Obama: 70M Social Security, Vets & Disability Checks at Risk if No Deal

Same story, different day as the debt negotiations go on.

The congressional leaders from both parties are back late this afternoon at the White House, but this time facing a stark warning from President Obama, who  says he cannot guarantee that Social Security, veterans benefits or disability checks will go out on Aug. 3 if no deal is reached 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," Obama said in an interview with CBS Evening News anchor Scott Pelley set to air tonight.

Obama, who apparently has not played his lkast wild card in the high-stakes game of political poker, was asked specifically about Social Security, but said the problem is much bigger that that.

"This is not just a matter of Social Security checks. These are veterans checks, these are folks on disability and their checks. There are about 70 million checks that go out," Obama said.

As it stands, Obama won't do a short-term deal and the Republicans say they won't do a deal that includes tax increases.

There is evidence that the showdown over raising the debt ceiling is beginning to take a toll on the financial markets, as analysts blame a downturn in most of the global markets overnight, including Wall Street the past two days, on two main concerns: The growing debt crisis in Europe and the debt shenanigans in Washington.

Meanwhile, Senate GOP leader Mitch McConnell (R-Ky), is offering up a scheme that may allow Obama to raise the debt ceiling with a vote, a veto and override vote.

It is a complex plan that the Democrats will first have to review, but at face value it appears to require something that neither side has for the other: Trust.

Social Security, Medicare on the Table in Debt Negotiations

Updated at 3:45 p.m. edt

For the first time, GOP House Speaker John Boehner is telling members of his party there is a 50-50 chance there could be a deal in the next few weeks on raising the debt limit.

"We had a conversation. It was productive," Boehner said after returning to the Capitol from the White House meeting.

Sources disclosed the shift in Boehner's position after President Obama sweetened the pot in the debt-ceiling negotiations, floating a new plan to slash about $4 trillion in spending over the next decade, instead of the roughly $2 trillion in cuts that have been on the table until now.

According to The Washington Post, the President is prepared to offer a chunk of the savings in reductions or alterations to Social Security, Medicare and Medicaid, if Republicans abandon their refusal to eliminate corporate tax loopholes.

The President told all eight leaders from both parties of the House and Senate when they met today that he does not want to tackle the debt problem by only making the middle class and poor Americans feel the pain. They are expected to meet again Sunday.

"Everybody acknowledges that there's going to be pain involved politically on all sides," Obama said after what he described as a productive meeting.

But now the plan may be something he has to sell his liberal backers on, since Democrats and the progressives have said they haves said hands off the entitlement programs.

"Let us be clear, Social Security has not contributed one nickel to our deficit or our national debt. Social Security is funded by the payroll tax, not the U.S. Treasury," Vermont Independent Sen. Bernie Sanders said. "I am especially disturbed that the President is considering cuts in Social Security after he campaigned against cuts in 2008."

Obama wants a deal by July 22nd -- 10 days before the Aug. 2 drop-dead date when the U.S. starts defaulting on its bills and likely sends the financial markets into chaos.