The debt ceiling isn’t actually debt, it’s simply necessary spending. #1 Debts owed to oneself don’t have to be repaid, and if you don’t have a “deficit” you’re destined to go into a recession. Get real about the sovereign fiat money system we have and stop believing delusions that the private banking system wants to keep dominating everyone with. It’s stupid.
After 4 years of trump’s “deficits don’t matter” leadership the GOP wants to default. Not surprising coming from the insurrection party. They want power at any cost to the nation, the “loyal opposition” has mutated to insurrection & sabotage.
Call_Me
2 years ago
This is a soap opera. It’s poor acting by the ‘talent’ and a guarantee that the same storyline will return in the near future.
shamrock
2 years ago
The debt ceiling dates back 100 years in response to the Executive branch issuing debt and spending money not appropriated by congress. If the debt ceiling isn’t raised in time, supposedly spending will need to be cut by 40% so as to not go further in debt. Since debt service is only about 6% of federal expenditures there would be no reason at all to “default on the debt”, in fact, doing that would barely make a dent in the needed spending cuts.
Six000mileyear
2 years ago
What signal did Schumer send with his green tie? It’s not “Happy St. Patty’s Day.”
njbr
2 years ago
Why weren’t these deficit hawks out and about cheering the exit from the money pit of Afghanistan?
It seems that Biden’s military leaders did not want to exit (in retreat mode) from Afghanistan. Foolish Biden decided to do this himself, just another of his foreign relations failures.
One thing that makes the charade more obvious is that deficit hawks exist only in the Party that doesn’t control the White House, no matter which Party controls the White House.
ToInfinityandBeyond
2 years ago
Muppets! Each and everyone of our elected representatives. Long past the time for term limits – I can dream 😀
JeffD
2 years ago
But never a call to cut government waste by the end of the week.
thimk
2 years ago
I’m not sure of all the mechanics behind this issue but I hear disparate view points . It boils down to this : Is the debt ceiling increase for future spending or current spending ? thanks
Any spending that exceeds tax receipts, beyond the point when the debt ceiling is reached. The government would have to prioritize what they spend taxes on, as debt would not be available for spending.
Umm. It doesnt matter. That idea is a red herring. It is just an artificial limit that prevents Treasury from paying if the total debt goes above that amount. It is for all spending, regardless of past or future.
A commonsense point of view says the government should not consistently spend more than it takes in from taxes. Long term borrowing for capital projects, and short term borrowing to cover occasional cash shortfalls (eg covid) are appropriate financial management techniques.
We are currently at the point when a government must keep interest rates at zero in order to keep borrowing because it lives beyond its means. The next stage is bankruptcy.
StukiMoi
2 years ago
A bunch of thieves saying everyone else “needs” to let them steal more. How original!
Who is stealing? Like most other things it is just ‘made up‘ as they go along. (a little fiat play on words)
Does this handle belong to the original ‘Stuki’? If so, hope you enjoyed your sabatical!
Mackkenzie
2 years ago
Could the democrats use the debt limit bill as leverage to get Machin to agree to eliminate the filibuster? If Schumer refuses to put this through reconciliation and will only bring it to a normal vote in the senate then he can put the blame on Manchin if it fails and say that the only option is for Manchin to support removing the filibuster.
Doug78
2 years ago
Schumer will get nowhere with McConnell wearing a tie of that color. It’s a serious tactical mistake.
Oh no, green means money. The fed chairmen got theirs, now it is time for all the honorable senators to get paid!
Mackkenzie
2 years ago
I thought 60 votes were needed to overcome a filibuster? Are Republicans saying they are going to filibuster any debt ceiling increases? I didn’t know it was a “rule” that every piece of legislation needed to be filibustered. How is it a violation of “rules” for Republicans to just vote “no” on a debt increase bill but not execute a filibuster?
60 votes are needed to overcome a filibuster. This is all procedural stuff. And it really has nothing to do with the debt ceiling. It has to do with making Democrats use what is a theoretically limited number of Budget Reconciliation measures to do it, such that the odds of their being to pass the monster $3-10 trillion country-changing (country-destroying for the most part) bill behind it are lower. This is all about that bill. So whatever anyone says about debt ceiling, default, blah blah blah is utterly irrelevant. The whole point is to stymie the Democrats monster spending bill they are trying to pass, a bill which includes all kinds of stuff they couldnt get through otherwise, like Green New Deal and a whole bunch of other things.
Yea. The democrats are in a tuff spot. They can raise the debt ceiling on their own and if they don’t the republicans can rightfully say they had the power to do it on their own and didn’t get it done. They control both the house and senate. The republicans were in a similar spot a few years back and Pelosi and Schumer said the exact opposite of what they’re saying now. It’s entirely political theater trying to assign blame. Has nothing to do with what’s best for the country.
No. They will filibuster, KILLING the ability to do the debt limit bill through normal order. This forces the Democrats to use the Budget Reconciliation tool to do it, which is limited use, maybe. Hoping that they then cant ALSO use reconciliation for the other massive bill. It is the same thing the Democrats did to the GOP when THEY had both houses of congress and the white house in 2018. Dems used filibuster to force Republicans to use reconciliation apparently to raise the debt limit at that time. I have read this but not verified the whole thing. In any event. As McConnell the idiot says, if Dems are going to govern on their own (no consultation with GOP on anything) then they can raise the debt limit on their own. Same thing happened in reverse. No one works with the other side any more. Either way.
The child tax credit will end after this year. If the Dems were a real left-wing party (which they are not), they would put forward a bill extending the tax credits, and funded by raising taxes on corporations and the rich. And when the Republicans vote against it, the Dems run the 2022 elections on that issue – that the Repubs voted to raise the taxes of the middle class and cut taxes on the rich.
But they are not a left-wing party. They are too afraid of angering their corporate bosses. So they won’t do it.
Well. I am writing what will wind up being about a 1200 page book that touches on this. I have a 15 page outline and hundreds of links, sources and spreadsheets so far. Talked the whole thing through with my dad, top schools, fortune twenty top 5 exec yada yada over the course of hours
The Dems today are NOT your fathers Democrats. And that is really too bad, because though I have never voted for any Democrat, ever, it will be the policies formerly associated with the left (the reasonable left, not todays variety) that will be required to fix what is wrong with our country going forward. Some of those policies have actually migrated to what is considered the right. But not nearly enough of them. Nor will they
If I can get it done. The research is mountainous. Just a tidbit as to one of the main theses (destruction of middle class). Cursory review of IRS tax returns since 2000 (I really need to go back into the 50s) indicate the proportion of returns with Income between $50k and 100k has dropped by over 10% during that time frame. Now the ones above have risen so I have to really look hard at that, but China into WTO being one of the big drivers (it all started with my 5 reasons why there is persistent low inflation). It started before that though. Basically, I am concerned about the rise of despair (drug use, suicide) which I posit is related to hollowing out of the economy. Ken Griffin recently stated just this also at Economic Club of Chicago (see ZH). But I think more and more people are looking at their future set of possibilities and saying, well hell, I cant really afford a home or a family, the two bedrocks of a middle class society. So then what?
Democrats are hypocrites, far worse than Republicans. E.g. subsidizing abortions and having children. ‘Stopping’ global climate change and subsidizing having more children. Subsidizing children while increasing the future burden on the same children by out-of-control deficits.
Always so much theater but it never fails. In the end the Republicans and Democrats embrace and we fall further into debt. Remember that time, Trump kicked the GOP out of the room and made the deal with bozos Schumer and Pelosi? He didn’t even manage to get a dime of funding for his big beautiful wall paid for by Mexico in the deal…
“Let me be clear about the task ahead of us: we must get a bill to the president’s desk dealing with the debt limit by the end of the week. Period,” Mr. Schumer (D., N.Y.) wrote in a letter to his Democratic colleagues.
…
The cynic in me thought hmmm (since various reports had fedgov able to hold out to end of month, early November) … and I was RIGHT.
Senate scheduled to be off next week. Don’t Ever Mess with our vacation / fundraising.
Cheap shot by Cornyn, who knows the debt ceiling has to be raised one way or another. Playing to his base with nothing to lose politically. I hope these fools crash the markets. It would serve them right. It won’t happen though. It’s all theater, when it comes down to it.
I don’t give them good odds now of holding majorities in either the House or the Senate. But I don’t think anybody will crash the markets unless there is a serious miscalculation of just how far this little stand-off can last before it does start to affect markets. It would be an accident…caused by the ridiculous arrogance of our fearless leaders.
Manchin now says, “nothing is off the table” (regarding a compromise on the spending bill) and the market goes up 500 points. Reminds me of the great days of Trump manipulating the market on a daily basis.
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But they are not a left-wing party. They are too afraid of angering their corporate bosses. So they won’t do it.
link to breitbart.com