The fact that the statutory debt limit can inject such chaos into the American political system and economy is truly odd. The debt limit measures nothing coherent and has no relationship to any serious measure of the economic burden imposed by the nation’s debt. It has as much relevance to the nation’s objective economic health as today’s horoscope. Yet if it’s allowed to bind, disaster would result.
A debt ceiling deal that included steep budget cuts was almost the entire reason why the economic recovery from the 2008–09 recession was the slowest in post-war history.If Congress will not raise the debt limit without a damaging deal on spending, the Biden administration should pursue work-arounds—including potentially minting a trillion-dollar coin—to keep the debt limit from binding.The U.S.
Finally, these are just the “mechanical” effects of hitting the debt ceiling. The ripple effects stemming fromthat would be sparked by missing interest payments on Treasury bonds could be extreme as well. But these mechanical effects are useful to keep in mind when some misleadingly claim that Treasury can “reprioritize” payments to bondholders and hence the United States can avoid technical “default.
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Yellen rejects GOP’s outlandish ‘emergency’ debt ceiling planEven if the Treasury Dept. were to take the GOP’s suggestion seriously, it wouldn’t prevent the dire economic consequences: Republicans would still cause a crash. (via MaddowBlog) Retired Top FBI Counterintelligence Agent Who Led Trump-Russia Probe Is Arrested Fucking Figures We are already in dire economic consequences. We need to CUT SPENDING and BALANCE THE BUDGET. This will help ALL AMERICANS. Just Republicans?
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Schumer: Republicans should reveal 'draconian' debt-limit demands to votersHouse Speaker Kevin McCarthy and other Republicans have demanded combining cuts to spending with raising the debt limit. Senate Majority Leader Chuck Schumer called the approach “dangerous” and “destabilizing” in his remarks. You just want to spend every dime you can Chuckie. Go find your favorite thing, a microphone, and complain that you can’t add more trillions to the debt. no what’s dangerous is continuing to mortgage the livelihoods of future generations. the time to cut the fat is now. do it now. No more debt!
Source: MarketWatch - 🏆 3. / 97 Read more »
Dem leadership, GOP approach impasse over refusal to negotiate cuts in exchange for debt limit boostDemocrats are digging in on their refusal to negotiate with House Republicans on cutting spending in exchange for raising the $31.4 trillion debt limit.
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Schumer prods House GOP to reveal spending cuts they want in exchange for debt limit hikeSenate Majority Leader Charles E. Schumer on Monday dared House Republicans to make public the spending cuts they want to see implemented in exchange for helping raise the federal debt ceiling. How about the Dems lay out their spending priorities when the debt ceiling isn’t lifted. Shutting down the ATF is a good start. $1.7 Trillion that Democrats passed just last month. For starters. Then all that DEI and CRT crap in our schools. Then anything related to “COVID relief” or vaccines.
Source: WashTimes - 🏆 235. / 63 Read more »