"The most financially promising of those options would be to "disinvest" government trust funds that hold Treasury debt, most principally the Social Security Trust Fund. Essentially, the trust funds would redeem bonds they hold ahead of schedule, in exchange for a promise to be paid back later -- and such an IOU would not count against the debt limit. Because the trust fund balances exceed $2.5 trillion, this tactic could be used to run the government for several years without hitting the debt limit.
"This tactic works because the debt limit applies to gross debt, including trust fund holdings, which are debts the federal government owes to itself. The government's true indebtedness is better reflected by net debt, also called Debt Held by the Public. By reducing the amount of debt that the government owes to itself, the federal government can grow the net debt while staying within the gross debt cap." However, as Barro notes, a raid on the Social Security Trust Fund "would also be politically fraught; while the Social Security Trust Fund is an accounting fiction, most Social Security beneficiaries don't see it that way." I posted all this stuff to hopefully clarify some of what you are hearing now in the media and from politicians that like to obfuscate. I hope I have not added to the confusion.
White House "czars," or advisers would also be banned by prohibiting funds to be used to pay for so-called czars on health care, climate change, global warming, green jobs, automobiles, Guantanamo Bay Closure, Pay and Fairness Doctrine. Two amendments de-fund the president's health care law and take steps toward blocking the legislation they have already voted to repeal. The amendments, both introduced by Iowa Republican Rep. Steve King, would block funding to implement health care reform and prohibit agencies from hiring staff to implement the law, effectively rendering its protections against insurance companies unenforceable.
Another longtime Republican target, Planned Parenthood, would be banned from receiving funding under an amendment offered by Rep. Mike Pence (R-Ind.), which Democrats called an "all-out war on women." The measure would prevent the organization from receiving any federal funding because it performs abortions -- even though using government money for abortions is already illegal -- undermining programs for reproductive health and pregnancy prevention. Barney Frank attempted to restore $131 million in funds to the Securities and Exchange Commission, but that amendment also failed in a 160-270 vote. So this is the Republican agenda for everyone to see...anti-health care, anti-environment, anti-Planned Parenthood, anti-Wall Street regulation, anti-Obama...pro corporation. The next step is the Senate... But what about the $1.5 trillion deficit? Wow those Republicans sure know how to make a dent in that...$60 billion...and nothing about jobs.