Question: Can a US President borrow/print as much money as he wants to without Congress?

[kyzr]

MSNBC had Kamala on with Stephanie Ruhle and one of the questions asked was something like "what if Congress is divided and they don't approve all of your new taxes, what would you do? Would you print or borrow the money?"

I'm not sure how Treasury treats borrowing or printing of money regarding the Federal Budget.
I do know that Treasury cannot exceed the "Debt Limit", but what are their limitations below the Debt Limit?

These are the Budgets for the last several years. Can Treasury only borrow enough needed to cover approved Budget items, or does the President have discretion to have Treasury create money for his/her pet projects, like Student Loans, or Ukraine, or ________?
Biden’s 2025 Budget is $7.30T with a $1.8T deficit______TOTAL BIDEN $6.9T (in theory)
Biden’s 2024 Budget was $7.30T with a $2.0T deficit
Biden's 2023 Budget was $6.13T with a $1.7T deficit
Biden's 2022 Budget was $6.27T with a $1.4T deficit
Trump's 2021 Budget was $6.82T with a $2.8T deficit___ TOTAL TRUMP $7.6T (actual)
Trump's 2020 Budget was $6.55T with a $3.1T deficit
Trump's 2019 Budget was $4.40T with a $0.9T deficit
Trump's 2018 Budget was $4.10T with a $0.8T deficit

https://home.treasury.gov/news/press-releases/jy2054

• During the January – March 2024 quarter, Treasury expects to borrow $760 billion in privately-held net marketable debt, assuming an end-of-March cash balance of $750 billion.[2] The borrowing estimate is $55 billion lower than announced in October 2023, largely due to projections of higher net fiscal flows and a higher beginning of quarter cash balance.[3]
• During the April – June 2024 quarter, Treasury expects to borrow $202 billion in privately-held net marketable debt, assuming an end-of-June cash balance of $750 billion.[4]

 

[Concerned American]

MSNBC had Kamala on with Stephanie Ruhle and one of the questions asked was something like "what if Congress is divided and they don't approve all of your new taxes, what would you do? Would you print or borrow the money?"

I'm not sure how Treasury treats borrowing or printing of money regarding the Federal Budget.
I do know that Treasury cannot exceed the "Debt Limit", but what are their limitations below the Debt Limit?

These are the Budgets for the last several years. Can Treasury only borrow enough needed to cover approved Budget items, or does the President have discretion to have Treasury create money for his/her pet projects, like Student Loans, or Ukraine, or ________?
Biden’s 2025 Budget is $7.30T with a $1.8T deficit______TOTAL BIDEN $6.9T (in theory)
Biden’s 2024 Budget was $7.30T with a $2.0T deficit
Biden's 2023 Budget was $6.13T with a $1.7T deficit
Biden's 2022 Budget was $6.27T with a $1.4T deficit
Trump's 2021 Budget was $6.82T with a $2.8T deficit___ TOTAL TRUMP $7.6T (actual)
Trump's 2020 Budget was $6.55T with a $3.1T deficit
Trump's 2019 Budget was $4.40T with a $0.9T deficit
Trump's 2018 Budget was $4.10T with a $0.8T deficit

https://home.treasury.gov/news/press-releases/jy2054

• During the January – March 2024 quarter, Treasury expects to borrow $760 billion in privately-held net marketable debt, assuming an end-of-March cash balance of $750 billion.[2] The borrowing estimate is $55 billion lower than announced in October 2023, largely due to projections of higher net fiscal flows and a higher beginning of quarter cash balance.[3]
• During the April – June 2024 quarter, Treasury expects to borrow $202 billion in privately-held net marketable debt, assuming an end-of-June cash balance of $750 billion.[4]

Congress holds the purse strings. Budgets have to go through congress, require the approval of both houses and the signature of the POTUS.

 

[JohnDB]

MSNBC had Kamala on with Stephanie Ruhle and one of the questions asked was something like "what if Congress is divided and they don't approve all of your new taxes, what would you do? Would you print or borrow the money?"

I'm not sure how Treasury treats borrowing or printing of money regarding the Federal Budget.
I do know that Treasury cannot exceed the "Debt Limit", but what are their limitations below the Debt Limit?

These are the Budgets for the last several years. Can Treasury only borrow enough needed to cover approved Budget items, or does the President have discretion to have Treasury create money for his/her pet projects, like Student Loans, or Ukraine, or ________?
Biden’s 2025 Budget is $7.30T with a $1.8T deficit______TOTAL BIDEN $6.9T (in theory)
Biden’s 2024 Budget was $7.30T with a $2.0T deficit
Biden's 2023 Budget was $6.13T with a $1.7T deficit
Biden's 2022 Budget was $6.27T with a $1.4T deficit
Trump's 2021 Budget was $6.82T with a $2.8T deficit___ TOTAL TRUMP $7.6T (actual)
Trump's 2020 Budget was $6.55T with a $3.1T deficit
Trump's 2019 Budget was $4.40T with a $0.9T deficit
Trump's 2018 Budget was $4.10T with a $0.8T deficit

https://home.treasury.gov/news/press-releases/jy2054

• During the January – March 2024 quarter, Treasury expects to borrow $760 billion in privately-held net marketable debt, assuming an end-of-March cash balance of $750 billion.[2] The borrowing estimate is $55 billion lower than announced in October 2023, largely due to projections of higher net fiscal flows and a higher beginning of quarter cash balance.[3]
• During the April – June 2024 quarter, Treasury expects to borrow $202 billion in privately-held net marketable debt, assuming an end-of-June cash balance of $750 billion.[4]

Treasury Department has to be complicit.
So does the Federal Reserve.

 

[shockedcanadian]

The day you are a monarchy lead by a king or queen.

What is a priority to them is that the "important ones" aren't holding their billions in U.S dollars when it collapses.

 

[TroglocratsRdumb]

the house appropriates spending

 

[JWBooth]

Treasury prints bonds and sells them to the Federal Reserve (and anybody else fool enough to buy) who prints the notes, and moves decimal points in accounts of major banks.

 

[JWBooth]

the house appropriates spending

In theory

 

[Concerned American]

Treasury prints bonds and sells them to the Federal Reserve (and anybody else fool enough to buy) who prints the notes, and moves decimal points in accounts of major banks.

Cart before the horse. If it doesn't pass both houses, it doesn't add to the debt and wouldn't require bonds. Bonds are just a way of financing the existing debt.

 

[jotathought]

No, the president cannot unilaterally 'print' or 'borrow' money. The authority to print money is with the Federal Reserve. The president can influence policy but does not have direct control over printing money. Borrowing money is the responsibility of Congress.

 

[Leviticus]

the house appropriates spending

No. They control the budget. But not exactly how each penny is spent, except in very specific cases. They give each department money buts up it's t o the office to decide how yo spend any excess after mandatory expenses are covered.

 

[The Irish Ram]

The Federal Reserve, a corporation of elite Bankers and "stakeholders" determine what our Treasury prints.

 

[kyzr]

Treasury Department has to be complicit.
So does the Federal Reserve.

So when the USSC says that Biden can't forgive student loans, and Biden forgives student loans, there is no fiscal cop to say "can't do that"? If Yellen at Treasury pays off student loans that is the way it is?

Not sure how the Federal Reserve fits in? They print money for Treasury?

 

[kyzr]

the house appropriates spending

True.
Then the senate signs the "appropriations Bills" and the president signs the Budget

But they haven't passed all of the appropriations Bills for many years, they just do "continuing resolutions".

When Biden pays off student loans and the USSC says he can't do that, there is no one to stop it. In theory Kamala could spend whatever she wants to as long as Treasury funds it. That to me is a Constitutional Crisis.

 

[kyzr]

No, the president cannot unilaterally 'print' or 'borrow' money. The authority to print money is with the Federal Reserve. The president can influence policy but does not have direct control over printing money. Borrowing money is the responsibility of Congress.

True, but if Kamala wants her $25,000 new house plan, and student loans paid, and child credits, and money for illegals, and reparations, and green initiatives, and has a Treasury secretary that ignores congress and funds them, who is to stop her?

 

[kyzr]

The Federal Reserve, a corporation of elite Bankers and "stakeholders" determine what our Treasury prints.

True, that's called the "money supply" M1, M2, and M3.
The Fed can "monetize the Debt", buy back bonds, lend banks money, etc. That is different than Treasury spending approved or unapproved Budget items. Too bad that the Fed doesn't make recommendations into fiscal matters other than Powell saying "the current path is unsustainable". Congress & the president never listen to them.

Does Rising National Debt Portend Rising Inflation?

While many people worry about the size of the national debt, the key is whether inflation remains tolerable or rises for a prolonged period.

www.stlouisfed.org

 

[KissMy]

Trump increased Federal Government Spending by 50%.

MAGA Loves BIG Government!!!!!!
MAGA Loves BIG Inflationary Deficits & Debt!!!!!!

 

[WorldWatcher]

So when the USSC says that Biden can't forgive student loans, and Biden forgives student loans, there is no fiscal cop to say "can't do that"?

Just a slight clarification.

The SCOTUS didn't say Biden can't forgive student loans.

The said the Biden couldn't reduce or forgive students loans under the HEROS Act which is the authority that the Biden Administration claimed as authorizing such action. They did NOT say that other actions couldn't be taken, only that they lacked authority under the HEROS Act.

So a different approach was attempted. Under Congressionally authorities repayment programs there is an Income Driven option where borrowers pay X% for Y years (typically 10% for 20 to 25 years) and after that the loan is forgiven. There is no question about the REPAY Plan which were the rules operating for years for Income Driven repayment plans. Given the loss in Nebraska v. BIden tried a different approach with a modification to Income Driven repayment called the SAVE Plan. Under the SAVE plan payments were lowered from 10% of discretionary income to 5% making the payments lower. The loans are not "forgiven" just payments lowered, once the same number of qualifying years of payments is reached (20-25) the remaining balance is then waived.

WW

 

[AntonToo]

True, but if Kamala wants her $25,000 new house plan, and student loans paid, and child credits, and money for illegals, and reparations, and green initiatives, and has a Treasury secretary that ignores congress and funds them, who is to stop her?

…you were just explained multiple times how it works.

There is only Congress approved spending. PERIOD.

A president can’t directly use monetary policy (“money printing”) to fund something outside of Congress approved spending.

 

[WorldWatcher]

Just a slight clarification.

The SCOTUS didn't say Biden can't forgive student loans.

The said the Biden couldn't reduce or forgive students loans under the HEROS Act which is the authority that the Biden Administration claimed as authorizing such action. They did NOT say that other actions couldn't be taken, only that they lacked authority under the HEROS Act.

So a different approach was attempted. Under Congressionally authorities repayment programs there is an Income Driven option where borrowers pay X% for Y years (typically 10% for 20 to 25 years) and after that the loan is forgiven. There is no question about the REPAY Plan which were the rules operating for years for Income Driven repayment plans. Given the loss in Nebraska v. BIden tried a different approach with a modification to Income Driven repayment called the SAVE Plan. Under the SAVE plan payments were lowered from 10% of discretionary income to 5% making the payments lower. The loans are not "forgiven" just payments lowered, once the same number of qualifying years of payments is reached (20-25) the remaining balance is then waived.

WW

Forgot to say. Biden’s actions for a SAVE plan are on court hold pending litigation.

WW

 

[kyzr]

…you were just explained multiple times how it works.
There is only Congress approved spending. PERIOD.
A president can’t directly use monetary policy (“money printing”) to fund something outside of Congress approved spending.

Let's hope that's how it works.
Kamala obviously didn't understand that her tax & spending initiatives would need congressional approval for funding, and if Republicans controlled the House or Senate her plans would probably not be appropriated.