- Jun 6, 2007
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House Republicans and their enablers are obviously being completely irresponsible about raising the national debt limit insisting on federal spending cuts as a condition to passing the needed legislation. Much has been spoken about in the media regarding the devastating economic collapse the Republicans are playing with here but the media has not shown a spotlight on the full story. The media keeps saying both parties the Democrats and the Republicans are responsible for the deficit spending that has caused the huge and growing national debt which is true and the further line is if you charged up things on your credit card you got a pay the credit card bill when it comes due in this case lift the debt ceiling. But the media should stop giving the Republican Party a pass on this issue their culpability is much worse than this they are much much worse on this issue than the Democrats. The Republican Party is responsible for irreversibly ruining America's finances for putting America on a trajectory where one day economic Armageddon will ensue for our country when sovereign debt investors perceive U.S. Treasury bonds as undesirable investments and don't readily purchase them, and the Treasury bond market becomes permanently unstable and the foundation such bonds provide in the U.S. and World economy is removed! The absolute unchangeable truth is that the Trump/Republican Party 2017 Tax cuts proved the Republican Party as an untrustworthy partner with the Democrats in managing the national debt and budget deficit so as to not ruin America's finances; this legislation on its face would increase the national debt by two trillion dollars over the following ten years. This made all the sacrifice of the Democrats over the past eight years meaningless; the Democrats refraining from using the reconciliation process to pass a two trillion dollar stimulus bill in 2009 which the country truly needed to lift it out of the Great Recession because they tried to be financially responsible and not use the reconciliation process to increase the national debt and all the refraining from increasing needed social program spending resulting from their agreement to a sequestration budget spending control mechanism to also maintain fiscal responsibility was all a big waste. When the Republicans got into control in Washington they showed that they were not seriously committed to this effort they demonstrated that financial responsibility about increasing the national debt was expendable to the Republicans their policy priority of cutting taxes took priority they demonstrated to the nation that the Democrats were suckers with all their sacrifices to achieve a goal that the Republicans would stomp into nothing to advance their political agenda! Moderate Republicans knew the gravity of this matter that is why prior to Trump's Presidential campaign they were all about deficit neutral tax reform but once Trump won and him having a recklessness about following sound principles and the right wing of the Republican with its deep down desires of the heart to take a meat clever to or eliminate most social programs of the Federal government where this would be step one the moderate Republicans caved and happily went on the "tax cut" spending spree. Honest knowledgeable people know that before the Trump/Republican Tax cuts passed, America was a "Grand Bargain (equal spending cuts and tax increases agreement)" away from solving the nation's national debt/budget deficit problem afterward fixing the nation's finances was impossible and hopeless the Republican Party no longer had any credibility on the issue and the national debt would soon grow to a level that a Grand Bargain couldn't generate the revenue amount to eliminate the yearly budget deficits and keep the national debt balance at a size where the interest expense on that debt isn't utilizing an alarming percentage of the tax revenue the nation is collecting! Bottom line the Republicans have no credibility on this issue they are responsible for ruining the country's finances so they should stop their "holier than thou" stance they have no basis to claim to such a stance and lift the damn debt ceiling and do it quickly so to advert this economic crisis they're toying with!
The other thing that is infuriating about this whole debt ceiling issue is Treasury Secretary Janet Yellen's bizarre and frankly malfeasance behavior on this issue. Prior to Secretary Yellen's approach to this issue Treasury Secretaries when faced with running up against the debt ceiling would start their emergency money management procedures long before they hit the debt ceiling limit and they would report to Congress on such and such day the nation even utilizing these money management procedures will have exhausted its borrowing capacity it will have hit the debt ceiling and everyone considered this such and such day the critical deadline the date which Congress and the President must raise the debt ceiling by to avert a crisis. Mystifying and strange beyond words because this lady was a former FED Chairperson, she knows clearly the inner workings of the nation's and the world's economy she knows the catastrophic consequences of a default on U.S. Treasury bonds, and yet she allows the nation to run up against the nation's debt ceiling and then begins the financial emergency management procedures. The media and members of Congress should be telling the American public that today, not the beginning of June, we are in a state of economic crisis because the debt ceiling has not been raised and they should be demanding of their representatives in Washington that they get us out of this crisis by lifting this ceiling. Because as of today the way America's finances are operating is that money coming in the front door of the Treasury is going right out the back door to pay America's debts and there is no ordinary safety mechanism in the system meaning that ordinarily if one of the nation's debt is due and there is not incoming money available to pay that debt the Treasury can borrow the money by just issuing the needed number of bonds that is not an option when the debt ceiling is hit which is where America is at today. Currently and this is hard to write because I cannot believe our leaders let this occur the nation's full faith and credit reputation, its ability to avoid default on its 31 trillion dollars of debt is solely depending on revenue, largely tax revenue coming into the Treasury. America is currently in an interest rate hiking environment to bring the inflation rate to the needed level, companies are making huge layoffs bracing for a recession, the American consumer is cutting back on spending likewise bracing for a recession so tax revenue coming into the Treasury will be declining and significantly the level to which no one can know for sure and the American government is banking the welfare of the nation's and the world's economy on the Treasury staff's ability to time and apportion this unstable income stream to America's must pay bills. Coupled with it sure seems from Secretary Yellen's statement that she puts on par with Treasury debt obligations, Social Security obligations and Federal Government employee salary obligations which increases the likelihood there won't be incoming tax revenue in the Treasury to meet a Treasury debt principal and interest obligation when they become due which is probably every week; this is crazy irresponsible an honest assessment must conclude that the current system cannot possibly avoid a Treasury obligation default it is only a matter of time before that catastrophic event occurs!
Moderate Republicans in the House got to get together with Democrats in the House as fast as humanly possible do that thing the media tells us that can be done involving issuing a discharge petition and pass a lifting of the debt ceiling bill through the House so the Senate can pass it and President Biden can sign it and remove America from this crisis. Also, President Biden should fire Janet Yellin from her Treasury Secretary job immediately because of her wacko, insane, dangerous beyond words policy she promulgated in regards to the debt ceiling allowing the Treasury to hit the debt ceiling limit than beginning emergency money management procedures thereby trashing a few months of borrowing capacity the nation could have had to manage its finances!
The other thing that is infuriating about this whole debt ceiling issue is Treasury Secretary Janet Yellen's bizarre and frankly malfeasance behavior on this issue. Prior to Secretary Yellen's approach to this issue Treasury Secretaries when faced with running up against the debt ceiling would start their emergency money management procedures long before they hit the debt ceiling limit and they would report to Congress on such and such day the nation even utilizing these money management procedures will have exhausted its borrowing capacity it will have hit the debt ceiling and everyone considered this such and such day the critical deadline the date which Congress and the President must raise the debt ceiling by to avert a crisis. Mystifying and strange beyond words because this lady was a former FED Chairperson, she knows clearly the inner workings of the nation's and the world's economy she knows the catastrophic consequences of a default on U.S. Treasury bonds, and yet she allows the nation to run up against the nation's debt ceiling and then begins the financial emergency management procedures. The media and members of Congress should be telling the American public that today, not the beginning of June, we are in a state of economic crisis because the debt ceiling has not been raised and they should be demanding of their representatives in Washington that they get us out of this crisis by lifting this ceiling. Because as of today the way America's finances are operating is that money coming in the front door of the Treasury is going right out the back door to pay America's debts and there is no ordinary safety mechanism in the system meaning that ordinarily if one of the nation's debt is due and there is not incoming money available to pay that debt the Treasury can borrow the money by just issuing the needed number of bonds that is not an option when the debt ceiling is hit which is where America is at today. Currently and this is hard to write because I cannot believe our leaders let this occur the nation's full faith and credit reputation, its ability to avoid default on its 31 trillion dollars of debt is solely depending on revenue, largely tax revenue coming into the Treasury. America is currently in an interest rate hiking environment to bring the inflation rate to the needed level, companies are making huge layoffs bracing for a recession, the American consumer is cutting back on spending likewise bracing for a recession so tax revenue coming into the Treasury will be declining and significantly the level to which no one can know for sure and the American government is banking the welfare of the nation's and the world's economy on the Treasury staff's ability to time and apportion this unstable income stream to America's must pay bills. Coupled with it sure seems from Secretary Yellen's statement that she puts on par with Treasury debt obligations, Social Security obligations and Federal Government employee salary obligations which increases the likelihood there won't be incoming tax revenue in the Treasury to meet a Treasury debt principal and interest obligation when they become due which is probably every week; this is crazy irresponsible an honest assessment must conclude that the current system cannot possibly avoid a Treasury obligation default it is only a matter of time before that catastrophic event occurs!
Moderate Republicans in the House got to get together with Democrats in the House as fast as humanly possible do that thing the media tells us that can be done involving issuing a discharge petition and pass a lifting of the debt ceiling bill through the House so the Senate can pass it and President Biden can sign it and remove America from this crisis. Also, President Biden should fire Janet Yellin from her Treasury Secretary job immediately because of her wacko, insane, dangerous beyond words policy she promulgated in regards to the debt ceiling allowing the Treasury to hit the debt ceiling limit than beginning emergency money management procedures thereby trashing a few months of borrowing capacity the nation could have had to manage its finances!
