Debt Ceiling Crisis

[Rodimus]

I believe they have already made an agreement on this a long time ago and this debt crisis is fake drama. The government and media do this every time this issue comes up.

 

[Jessica-stormlover]

If I was president I sure as hell would use the 14th! Fuck the cut, slash and burn republicans in their unAmerican ass

 

[multivita-man]

The issue is that the government is running out of cash. If that happens, this will become a day-to-day thing where the government waits for tax receipts and disburses the money that it can -- or maybe not at all.

Meanwhile the markets freak the fuck out because they have no way of knowing whether debt obligations will be serviced, or whether funds for Medicare, Social Security, military pensions, etc. will get disbursed. It'll be total chaos, and it'll get ugly quick.

And I don't know if the US economy ever fully recovers either because investors will now have all the evidence they need that America's political crisis has become an "uncontained failure" that threatens national and global economic stability. We'd definitely see some capital flight from foreign investors, hedging against the dollar, and higher interest rates - possibly for months onward.

If the goal for the GOP is to kill Biden's re-election hopes, honestly, I think it would succeed. There are already doubts about Biden's fitness due to his age and just general dissatisfaction about the direction of the country, and this would be another nail in that coffin. But it would be at potentially tremendous cost to the country and I think voters would be furious with both parties. Maybe a 3rd party candidate gets bankrolled then, who knows...

 

[multivita-man]

If I was president I sure as hell would use the 14th! Fuck the cut, slash and burn republicans in their unAmerican ass

Nah, this won't work, sorry. This is fantasy-land, unicorn thinking.

Congress, not the Executive, has the power of the purse and that includes the power to issue debt.

 

[shockedcanadian]

I believe they have already made an agreement on this a long time ago and this debt crisis is fake drama. The government and media do this every time this issue comes up.

Blame Manchin among others. I wonder what the media believes now about massive debt increases? Still a great idea that won't cause inflation? If the U.S doesn't shrink government it is going to be difficult to reign in spending. It is the same response required in bankrupt Ontario, stop delaying the inevitable.

 

[Esdraelon]

If I was president I sure as hell would use the 14th! Fuck the cut, slash and burn republicans in their unAmerican ass

You do understand that our debt load is unsupportable, right? Makes no difference who spent more or when they did it. We are at about 32 TRILLION dollars in debt and we are spending nearly 1.5 $T more in every year. That means we are headed for bankruptcy and at this point, there will be no stopping it regardless of trying to save a few bucks. Add to that fact the reality that when we go down, the rest of the global economy does also.

The "great reset" is being set up and there is no stopping it. We are about to become Venezuela. Those who are unable to feed themselves are going to go full terminator on their neighbors. In my little part of paradise, that will only cause a "target rich environment"...

 

[tyroneweaver]

If I was president I sure as hell would use the 14th! Fuck the cut, slash and burn republicans in their unAmerican ass

geeze, you have to be paid to post trash like this

 

[multivita-man]

You do understand that our debt load is unsupportable, right? Makes no difference who spent more or when they did it. We are at about 32 TRILLION dollars in debt and we are spending nearly 1.5 $T more in every year. That means we are headed for bankruptcy and at this point, there will be no stopping it regardless of trying to save a few bucks. Add to that fact the reality that when we go down, the rest of the global economy does also.

It's not the debt that's the problem -- we've carried debt for all but maybe 5 years of our nation's 230+ year history. We carried a lot of debt after the close of WWII.

The difference is we had adults in the room who weren't trying to focus on their political 'base'. So each election the Republicans promise their megadonors tax cuts for corporations and really wealthy people, or at minimum, that these already-low taxes won't increase. And then Democrats, of course, promise canceled student debt (which is lost revenue* now) and they promise other shit that their base wants. And there's an increasing unwillingness for either side to compromise.

*Going back to the debt, we don't necessarily have a debt crisis just yet -- we will if we continue like this, but the debt situation is still manageable at present, if we can get both sides to accept that gravity is real. Right now, we have a revenue-over-expenses problem. We have a much lower-than-predicted level of tax receipts because 2022 was a worse year for income than 2021, and we have higher debt servicing costs due to interest rates. And yes, we probably do have more spending now due to legislation from last year. Consequently, the Treasury's General Account balance is quickly heading toward 0.

And I have a bad feeling that after the close of business on Monday, there's going to be a genuine panic, as in recent weeks, Monday tends to be day when that balance declines the most. The so-called x-date might get here even before June 1.

What we need is for the House GOP to agree to a debt limit raise now that will fund the budget until the appropriations bill comes up for debate, with the condition that the Dems agree to renegotiate spending. The GOP in return must also agree to consider taxes on the wealthiest, starting with the repeal of at least some of the Trump tax cuts.

The fear among the House GOP is obviously going to be that the Dems might renege on any pledge to renegotiate. If they want to test them, they could offer a shorter window between now and the fall when the budget talks usually start.

The "great reset" is being set up and there is no stopping it. We are about to become Venezuela. Those who are unable to feed themselves are going to go full terminator on their neighbors. In my little part of paradise, that will only cause a "target rich environment"...

What's more likely is either an end of, or massive cuts to, Social Security and Medicare. Maybe not the end of the world to those of us with money but people who don't have a great retirement nest egg are gonna feel it hard. Elderly poverty will skyrocket without those programs, and life expectancy will go down. It's already going down, in fact, but for other reasons.

 

[Dekster]

Biden should request some foreign aid. Tell them the post apocalpytic world will be bad for the environment so all those Paris Treaty people need to be sending us some cash.

 

[KissMy]

Withhold Politicians Pay if they Default on Budget

 

[progressive hunter]

 

[leftwinger]

Again: There are no CUTS. Spending will increase every year. ************

This “deal” normalizes record high spending started during the pandemic. It sets these historically high spending levels as the baseline for all future spending. The bill then grows govt even more each year at about ~1%.
After factoring in a small cut to discretionary spending over the next 2 yrs, we are still talking about ~$6T more or less in spending bc of large increases in spending elsewhere. In other words, it’s a wash spending-wise.
Govt grew massively over the past 3 years. This growth was supposed to be emergency funding only during COVID. During this time, govt grew 40% or by $2 trillion from 2019 to 2023. We went from spending just over $4T to spending just over $6T.

This deal keeps that record high spending intact and makes it the baseline for all spending. Wild.
The bill doesn’t actually set a debt limit. Rather it suspends the debt limit entirely until Jan. 2, 2025 and there is no actual amount capping the debt ceiling.
Some say there will be a $2T deficit in 6 years, but that CBO guesstimate relies on spending caps that do not exist and are not binding in any way in this deal.

And only in DC is a bill clawing back small amounts of unspent COVID funds considered a cut.
They tell us this bill cuts $41b in its first year; about the same amount as the unspent COVID funds. Pretty convenient. Also not a cut.
And on that note, do we really think the states will send back unspent COVID funds or will they find a way to use the money so they don’t have to send it back?

Fauchi Flu Same as Obiden 1.0 housing Meltdown: Congress Creates a crisis, Adds in ~$1T stimulus.....then bake that stimulus into the budget for the remaining 7-8 years.

 

[progressive hunter]

Ben Shapiro weighs in on the debt ceiling deal…

Ben Shapiro put out his two cents worth this morning on the debt ceiling deal negotiated by Kevin McCarthy and the White House. In short, he suggests the deal is a success compared to Biden’s…

therightscoop.com

 

[Blaster]

Tax cuts didn't go far enough in this deal. It could have been much better.

 

[leftwinger]

Ben Shapiro weighs in on the debt ceiling deal…

Ben Shapiro put out his two cents worth this morning on the debt ceiling deal negotiated by Kevin McCarthy and the White House. In short, he suggests the deal is a success compared to Biden’s…

therightscoop.com

Shapiro:
I fail to understand why conservatives are more agitated over McCarthy's deal than they were with the fact that with Trump as president and full control of Congress, Republicans increased spending.

 

[progressive hunter]

Shapiro:
I fail to understand why conservatives are more agitated over McCarthy's deal than they were with the fact that with Trump as president and full control of Congress, Republicans increased spending.

one thing you can depend on that republicans will do is stab their supporters in the back,,

just one of many reasons I never vote for them or democrats,,

 

[Blaster]

one thing you can depend on that republicans will do is stab their supporters in the back,,

just one of many reasons I never vote for them or democrats,,

I usually only vote for 3rd party candidates.

 

[leftwinger]

Tax cuts didn't go far enough in this deal. It could have been much better.

In totality the Spending increases each year? That is not any "CUT"? Cut to the planned rate of increase perhaps?

 

[progressive hunter]

In totality the Spending increases each year? That is not any "CUT"? Cut to the planned rate of increase perhaps?

chip explains it in detail on the beck video,,

 

[Blaster]

Just another cave in by Republicans.