Tag: Debt Ceiling

Today Is The Day!

Hold your breathe for today is going to be interesting….or even comical….either way the theater will be massive…..

Today’s a milestone day for the Treasury Department, though it’s one it had hoped wouldn’t arrive. Thursday marks when the United States is expected to hit its $31.4 trillion debt cap, a borrowing limit set by Congress that means Treasury will now have to get creative with other ways to pay the nation’s bills. Per the New York Times, the development is expected to set off a contentious debt-ceiling fight between Democrats, who want to lift the cap, and Republicans, who say no way unless President Biden OKs significant spending cuts. “At a moment of heightened partisanship and divided government, it is … a warning of the entrenched partisan battles that are set to dominate Washington in the months to come, and that could end in economic shock,” the paper notes. More on what’s ahead:

  • A feud that may ‘cross the Rubicon’: That’s how Axios paints the “fraught and perilous” debate, in which it anticipates neither side will do much negotiating. That’s not good news when the US is perched on the precipice of a recession. The outlet notes it could also be “an avatar of what some have argued is a US democracy that’s become increasingly polarized, ungovernable, incapable of tackling major challenges—and could be on the verge of outright destabilization.”
  • What it means for Americans: CNN notes that “every American could feel the pain” of what’s to come, and USA Today delves further into the ways the debt-ceiling fight could impact our finances, from how it will affect tax refunds and 401(k) accounts to what it means for Social Security, Medicare, and Medicaid.
  • What it means for investors: The New York Times offers its take on where to put your money during such turbulent times. One takeaway: Sticking with stocks and bonds over the long haul will probably serve you well.
  • Looking to the past for precedent: CNN takes a look back at other debt standoffs, including in 1995, when the debt was a mere $4.9 trillion. NPR, meanwhile, talks to two key players during the 2011 debt-ceiling impasse—Jason Furman, an economic adviser to then-President Obama, and Rohit Kumar, an adviser to Mitch McConnell, the Senate’s top Republican that year—to see if there are lessons to be gleaned.
  • But this isn’t 2011: Participants in a roundtable discussion at the Times note that things are very different than they were a decade ago—including “a worrying trend of edging closer and closer to red lines because lawmakers think there’s political benefit and that there won’t actually be consequences.” In other words, it’s become a high-stakes game of chicken that could have far-reaching repercussions.

Let the games begin!

House GOP will inflict as much pain as they can on Americans…..

Thursday, January 19, 2023 as the day the United States is likely to reach its debt limit, although she has also said that she can keep the federal government open through June by resorting to “extraordinary measures.” Yellen has stressed that the sooner Democrats and Republicans in the U.S. House of Republicans can reach some type of agreement on the debt ceiling, the better. But the two major parties appear to be at a stalemate in the House, where Freedom Caucus and Tea Party Republicans are demanding major spending cuts and Democrats are maintaining that vital programs like Social Security, Medicare and Medicaid should not be on the chopping block.

Meanwhile, countless economists are warning that if the U.S. defaults on its debt obligations, the results would be disastrous economically and trigger a painful recession. Liberal economist Paul Krugman, in his New York Times column, has warned that House Republicans are happy to risk a financial calamity in the hope of butchering Social Security and Medicare. And Never Trump conservative Charlie Sykes has argued that House Republicans aren’t being “fiscally conservative” when they play “chicken” with the U.S. economy and risk a default on the United States’ debt obligations — they’re being reckless and irresponsible.

https://www.alternet.org/debt-ceiling-2659280721/

May I suggest that you invest in some Vaseline and just bend over….for the Repubs are coming.

I Read, I Write, You Know

“lego ergo scribo”

Debt Ceiling–The Game

The big news other than abortion and congressional antics has been the debt ceiling….if it was not raised then the government would shutdown….and the game began……

The Repubs, as usual, played it tough before they cave and do a deal that would extend the functioning of government….at least for a short while……

As usual the game was all too predictable……

The Senate dodged a US debt disaster Thursday night, voting to extend the government’s borrowing authority into December and temporarily avert an unprecedented federal default that experts warned would devastate the economy and harm millions of Americans. The vote of 50-48 in support of the bill to raise the government’s debt ceiling by nearly a half-trillion dollars brought instant relief in Washington and far beyond. Congress has just days to act before the Oct. 18 deadline after which the Treasury Department has warned it will quickly run short of funds to handle the nation’s already accrued debt load. The House is likely to return to approve the measure next week. The White House signaled Biden’s support, with principal deputy press secretary Karine Jean-Pierre saying the president would sign a bill to raise the debt limit when it passed Congress.

Senate Majority Leader Chuck Schumer said Thursday an agreement has been reached with Republicans to extend the government’s borrowing authority into December, temporarily averting a debt crisis. “We’ve reached agreement,” Schumer announced as he opened the Senate, reports the AP. “Our hope is to get this done as soon as today.” Senate GOP leader Mitch McConnell had offered to accept a short-term extension on Wednesday, shortly before Republicans prepared to block legislation to suspend the debt limit until December of next year.

The agreement sets the stage for a sequel of sorts in December, when Congress will again face pressing deadlines to fund the government and raise the debt limit before heading home for the holidays. McConnell and Senate Republicans have insisted that Democrats would have to go it alone to raise the debt ceiling and allow the Treasury to renew its borrowing so that the country could meet its financial obligations. Further, McConnell has insisted that Democrats use the same cumbersome legislative process called reconciliation that they used to pass a $1.9 trillion COVID-19 relief bill and have been employing to try to pass Biden’s $3.5 trillion measure to boost safety net, health, and environmental programs.

McConnell said in his offer Wednesday that Republicans would still insist that Democrats use the reconciliation process for a long-term debt-limit extension. However, he said Republicans are willing to “assist in expediting” that process, and in the meantime Democrats may use the normal legislative process to pass a short-term debt-limit extension with a fixed dollar amount to cover current spending levels into December. Democratic Sen. Chris Murphy’s take: Assuming final details in the emergency legislation are in order, “for the next three months, we’ll continue to make it clear that we are ready to continue to vote to pay our bills and Republicans aren’t.” McConnell: “This will moot Democrats’ excuses about the time crunch they created and give the unified Democratic government more than enough time to pass stand-alone debt-limit legislation through reconciliation.”

Does all that sound the least bit familiar?

The end result was all too predictable….it is the same game with the same result year after year.

Another waste of time because it is not something that needs the wasting of this valuable time….a ploy all too familiar……especially with the approach of an election year.

These are the games politicians play to avoid the heavy lift the country needs badly.

Turn The Page!

I Read, I Write, You Know

“lego ergo scribo”

Here Comes The “Shutdown” Again

September is quickly approaching and if you know you government then you will realize the the debt conversation is looming….and while it does so the whole subject of a “Shutdown” awaits this years debate.

Every year there is a back and forth over the debt and every year there is the rumblings of a governmental shutdown.  And every year it is Right versus Left in these deliberations.

Since the installing of this Trump person there seems to be some clear skies in DC…..some …wait for it…..bi-partisanship…..something that has been missing for decades.

A bipartisan group of House members is working on a proposal to address the most urgent issue facing Congress when it returns in September: how to keep the government open and avoid the first-ever default on the nation’s debt.

Members of the Problem Solvers Caucus are drafting proposals to present to the entire 43-member caucus when Congress returns after Labor Day, said caucus co-chairman Tom Reed, R-N.Y.

Treasury Secretary Steven Mnuchin has warned congressional leaders that the government will run out of money to pay its bills by Sept. 29 unless lawmakers vote to raise the debt limit. Funding to keep the government open is set to expire two days later, on Oct. 1, unless Congress can agree on a spending deal during the approximately three weeks it will be in session in September.

Source: Bipartisan group of House members drafting proposal to avert shutdown, default

Is this the beginning of the return to bi-partisanship….the beginning of the Congress working together to solve out problems….or is it just a fluke?

Me? I believe that any bi-partisanship will be temporary….soon it will be beack to the “trench warfare” of American politics.

What’s That Sound?

While I was otherwise distracted with gathering my wits for the legal battle I had yesterday……there was a story blowing in the wind…….

Sounds like a heavy sigh to me…….after many months of speculation on the approaching debt limit….there were all too many opinions on how it would play out……and Tuesday it played out in a way that few could have foreseen…….

House Republicans backed away from a battle over the government’s debt cap today and permitted Democrats to drive quick passage of a measure to increase the government’s borrowing cap without any concessions from the White House. The 221-201 vote came hours after Speaker John Boehner announced that his fractured party would relent and not seek to add other items to the must-pass legislation. Twenty-eight Republicans voted yes. The bill would permit Treasury to borrow normally for another 13 months; the Senate is expected to pass it tomorrow.

Here’s a look at how it’s being played:

  • New York Times: “It effectively ended a three-year, Tea Party-fueled era when a series of budget showdowns raised the threat of debt defaults and government shutdowns, rattled economic confidence and brought serious scrutiny from an international community questioning Washington’s ability to govern.”
  • Wall Street Journal: It’s “a tactical retreat by Republicans stymied by their internal divisions.”
  • The Hill: “Boehner’s decision drew heavy criticism from conservative groups, many of whom said Boehner needs to be replaced. Many noted that the so-called ‘Boehner rule’ now appears dead—that was the informal name for Boehner’s effort to extract spending cuts in exchange for debt ceiling hikes.”
  • Politico: “It’s also a clear sign of the House Republican Conference’s inability to move beyond fiscal fights and lays in plain view the leadership’s inability—or unwillingness—to corral votes for their priorities.”

Step back and think about what happened Tuesday……could this be a dawn of a new day in DC?  Or was this just a momentary lull…..time to decide on the next fight to pursue?

John Boehner ended the debt ceiling wars, but his fellow Republicans didn’t exactly throw him a parade. The Washington Post today has an excruciatingly awkward account of how Boehner broke the news to his caucus at a private breakfast yesterday morning. “Listen—we’re going to move forward,” he said, standing before a room of drowsy Republicans. “We’re going to get this done.” He said he wouldn’t even consider floating another proposal—he had made up his mind to go with a clean bill. The Republicans sat up, stunned, and silently stared at him. No one booed. No one cheered. Boehner stood waiting for any reaction at all, then finally shook his head and walked to his seat. “I’m getting this monkey off your back, and you’re not going to even clap?” he said as he went, after which one House veteran says there was “how do I say it, a polite golf clap.” Meanwhile, at a private lunch yesterday, Senate Republican leaders were urging their members to drop any filibuster attempts and let a vote take place today, Politico reports. One GOP senator said that most at the lunch were more concerned about “getting the hell out of town” before the coming snowstorm arrived. The response from the right has mostly been muted. The Wall Street Journal today ran an editorial urging Republicans to repeal the debt ceiling entirely and “finally end this periodic self-torture.”

Thoughts?

Is The Ceiling Falling?

Why don’t we talk economics and politics in the same breath?

What’s that sound?  Is that everyone’s butt slamming shut?

I know economics is about as exciting as watching paint dry…..but unfortunately it is everywhere…there is NO way to avoid it.

Next month there will be a huge deal in the media about the debt ceiling…..the questions will be asked if the GOP will play the usual game?  Will the economy be held hostage to ideology?  That will be the common thread in the media and we know what that means…….politico after politico will dash out to the nearest camera and have their say…a say that will have been scripted during the meetings being held the last week of January.

Will an act of sabotage be perpetrated?  Economic sabotage that is……..

But who will be the point people?  My guess is that Cruz and Paul will be the most vocal in the beginning…..and then a bunch from the House will chime in….people like Lee, Stockman and some of those retiring soon……the rhetoric will be that it is the prez that is at fault….of course it will…he is ALWAYS at fault……there will be a concerted effort along these lines as to put the idea into the heads of the people that it is somehow the Dems fault for the failure……and as I look at the building storm…it could be effective….remember there is an election this year and any help that can be gleamed out of the debt ceiling debate will be lagnappe…..(something extra for those that do not speak Cajun)……..

All in all, the debt ceiling will be messy and chaotic……can hardly wait!

Why We Must Reset the Fiscal Debate: 15 Charts | Center for American Progress

A Week is all that is left for the snails running this country….will they find a deal in the 11th hour or will the pricks allow the government to shut down?

Congress has NOTHING to use if government shuts down….they still get paid while most over government employees do not….this is why I despise these worthless bastards!

Why We Must Reset the Fiscal Debate: 15 Charts | Center for American Progress.

Debt Debacle

Okay ladies grab your bloomers…..the debt theater is set to begin…we will hear all about spending, debt ceiling and anything else they care to throw at the cameras…….we will hear person after person on the Tube tell us all about how crappy the other side’s position is……and we will pick our sides by what our fav commentator has to say on the subject…….

But before we do that…..do you know what the debt ceiling is?

Once a little-known aspect of the U.S. government’s fiscal management process, the debt ceiling exploded into the public consciousness following the intense debate that took place in the summer of 2011. As its name would suggest, the debt limit is simply the maximum amount that the U.S. government can borrow at any given time. Currently, the limit is set at $16.394 trillion. Each year, the government spends more than it takes in, and this gap must be funded with debt, or more specifically, bonds issued by the Treasury. By law, however, the Treasury can’t issue new debt once the country is at its borrowing limit – and this limit, or ceiling, needs to be agreed to by Congress.

The debt limit doesn’t authorize new spending; instead, it provides the funding to pay for spending commitments that Congress has already made. Since the Treasury can’t issue new debt once the limit has been reached, the government would be forced to slash spending if it exceeds the borrowing limit. The result would be a partial government “shutdown” and a debt default (or the failure to make interest and/or principal payments on time).

Let me emphasize one point…….

The debt limit doesn’t authorize new spending; instead, it provides the funding to pay for spending commitments that Congress has already made….have you got this?

Just thought I would help you understand the debt ceiling issue before it becomes an endless stream of one liners, and sound bites…….

Personally, I do not see the need for the debt ceiling…..I mean since it has been around it has NOT done anything to curb spending….and that is a whole other post……but to tie debt ceiling to spending talks is just a political game…….and all it will do is give the media something to fixate over for a couple of months and in the end…….after all the drama they will kick it down the road (damn…I hate that term….but in this case sums up the antics really well)……and we will await the next round of total lack of seriousness by our politicians…….makes me proud.

People! Wake The Hell Up!

The deal is done!  Tuesday the Senate made it official and voted for the pathetic debt deal and immediately the Congress ran to the exits and on to the airport so they could go home and put on the latex gloves and knee pads and meet with their donors……the temp on Tuesday in Washington was 96 and it will be 87 on Wednesday….if that does not prove that the people are large sources of hot air, then nothing will…….

But I digress……..Did you know in their rush for the exits and the failure to do something about the FAA bill will cost the country about a billion dollars in noncollectable revenue?  Just thought you would like to see just how these people are screwing the country……..but wait!  There is more!

After the deal vote Senate minority leader said….”Americans do not believe that raising job killing taxes is best for the country….” (a paraphrase)…..but according to the Economic Policy Institute, a non-partisan think tank that deals with facts and figures….the deal is a job killing bill in itself…..

According to the EPI analysis the debt ceiling act will, in the long run, cost about 1.8 million jobs and will increase the debt by $241 billion…..but do not take my word for it….read the analysis for yourself…….http://t.co/9n2GZID………

Or another analysis from the EPI…….http://bit.ly/qoxWDk

I ask my readers to please read both analyses and then pass on these stories to others and maybe we can get somewhere when the losers return from their donor-a-thons in September.

What are you paying these people for?  Apparently, they have NO inclination to help you or your family, then why keep putting your trust in their crap?  It is time for us, the people, to take back our country from the windbags we have elected….I am all for giving Alfred E. Newman a shot….he could do no worse!

Let’s Do Lunch…..My Treat

After many months of back and forth, talking points, finger pointing, lies and BS the whole debacle of the debt negotiations is over.  The minute the final vote was in the Reps sprinted to the airport so they could start their recess after pulling out their knee pads and shower caps…..and the Prez?  Well he started immediately after the vote on his newest talking point….Jobs.  And for being loyal supporters the Prez took his staff out to lunch to celebrate……

The WSJ is reporting……..

The lunch group included Mr. Obama’s budget director, Jack Lew; Vice President Joe Biden‘s chief of staff, Bruce Reed; the director of the National Economic Council, Gene Sperling; the White House’s top laison to Congress, Rob Nabors; and deputy White House Chief of Staff Nancy Ann DeParle. Mr. Obama sat at the table with a burger, fries and a salad in front of him, according to a pool report. The president was apparently in a good mood, sharing his spread with fellow diners, including 11-year-old Andrew Parker, who said Mr. Obama told him to choose any milkshake he wanted from his table.

A joyous lunch no doubt…….but my question is…..what the Hell are they celebrating?

The Dems got zero out of the deal….the GOP got just about everything they wanted……the the American people got a screwing that they soon will begin to feel…..and it was without Vaseline……so it will begin to hurt almost immediately….the markets tanked…….the debt will increase and jobs will be lost……I do not see much to celebrate…but then I am not a gutless politician!

If there is any of my readers that want to defend what the Dems and the Prez has done….please feel free to let us all know…..just what is the celebration for?