Republicans and the debt ceiling

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Here we go, folks.

“The Treasury Department on Friday said that it will begin “extraordinary measures” next week to prevent the United States government from defaulting on its payment obligations, as lawmakers in Washington prepare for a potentially devastating fiscal showdown.
In a letter to congressional officials, Treasury Secretary Janet L. Yellen said the administration would on Jan. 19 begin repurposing federal funds to extend the date by which the government will run out of money. Congress must pass a law raising the debt limit from its current total of $31.4 trillion or the Treasury can’t borrow any more, even to pay for spending lawmakers have already authorized.”
https://www.washingtonpost.com/us-policy/2023/01/13/debt-limit-extraordinary-measures-treasury/

I sure wish Democrats had taken care of this during the lame duck period in December. But—for some mystifying reason—they didn’t. Now we get to watch Joe Biden prostrate himself and agree to draconian cuts in Social Security in order to appease Republicans and avoid catastrophe.

No mystifying reason. They counted the votes. They needed 60 votes in the Senate and they passed everything that all 50 Democrats plus 10 Republicans would support.

It could have been attached to a reconciliation bill, which only requires 50 + a tiebreaker.

Manchin didn't sign off on that

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Here we go, folks.

“The Treasury Department on Friday said that it will begin “extraordinary measures” next week to prevent the United States government from defaulting on its payment obligations, as lawmakers in Washington prepare for a potentially devastating fiscal showdown.
In a letter to congressional officials, Treasury Secretary Janet L. Yellen said the administration would on Jan. 19 begin repurposing federal funds to extend the date by which the government will run out of money. Congress must pass a law raising the debt limit from its current total of $31.4 trillion or the Treasury can’t borrow any more, even to pay for spending lawmakers have already authorized.”
https://www.washingtonpost.com/us-policy/2023/01/13/debt-limit-extraordinary-measures-treasury/

I sure wish Democrats had taken care of this during the lame duck period in December. But—for some mystifying reason—they didn’t. Now we get to watch Joe Biden prostrate himself and agree to draconian cuts in Social Security in order to appease Republicans and avoid catastrophe.

No mystifying reason. They counted the votes. They needed 60 votes in the Senate and they passed everything that all 50 Democrats plus 10 Republicans would support.

It could have been attached to a reconciliation bill, which only requires 50 + a tiebreaker.

Which then would have passed because there weren’t 50 votes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Just a reminder that defaulting on debt does not “save taxpayers $$.” This is money already spent.

There is no defaulting being discussed. What would happen is the Treasury would not be allowed to borrow beyond a certain limit, so some spending would have to be withheld.
There would be an issue of having to pay debt that rolls over, and then they are not allowed to borrow again to make those payments.

Withholding spending money that has been appropriated would be a manner of default. The law requires the executive to spend appropriated funds for its purposes. It has a legal obligation to pay SS benefits, make grants to states, pay Medicare claims, pay employee salaries and benefits, pay veterans benefits, etc. The debt limit basically puts the executive in a situation where it has to violate a law because the law caps the amount the can be borrowed and the amount that can be raised via taxes to less than the amount that is required to be spent.

So we have to put up hostage-taking and extortion until the next revolution/constitution?

As I see, the president has to decide which law to break because it is impossible to comply with all of them. If I were Biden I’d do it in the most painful way possible for house republicans. Cut off grants and other spending in their states and districts first.

[Anonymous]

That actually sounds like a perfect plan for Biden.

If House Republicans manage to shove through things that would require cuts, direct all of the cutting to come from red states.

What better way to let red state constituents ACTUALLY understand what it is that they are voting for.

[Anonymous]

[Anonymous]

The republicans can’t pass anything but can break the system. This will be very painful for many Americans.

[Anonymous]

Anonymous wrote:The republicans can’t pass anything but can break the system. This will be very painful for many Americans.

Please forgive my ignorance. What are the implications?

[Anonymous]

Anonymous wrote:

They can write all the plans they want, but Biden has no obligation to follow them. If they don’t raise the limit, prioritization will be up to Biden, not the House GOP. They should consider the consequences of that.

[Anonymous]

Liberal spending has made the USA broke. Now all we can do is inflate the currency until hyper inflation brings down the hammer

[Anonymous]

Anonymous wrote:Liberal spending has made the USA broke. Now all we can do is inflate the currency until hyper inflation brings down the hammer

You don’t know history or math.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The republicans can’t pass anything but can break the system. This will be very painful for many Americans.

Please forgive my ignorance. What are the implications?

DP. A debt ceiling crisis is nothing like budget sequestration. It doesn’t trigger across the board cuts in spending. A debt ceiling crisis would mean the Treasury can’t issue new Treasury securities to pay off the Treasury securities and interest that are due. They are toying with inciting a panic of international and institutional investors that could blow up the entire U.S. financial system.

[Anonymous]

Kevin McCarthy made a secret deal with Chip Roy-led branch of the Freedom Caucus to get their votes for Speaker.

Congress won't raise the debt ceiling and then will dictate what government programs won't get funded. For example, Congress will still allow interest payments, social security, Medicare, the VA and the military to be funded. But then cut funding for, I don't know, school lunches, or the DOJ, or National Parks - whatever offends their delicate sensibilities - so the debt limit isn't breached.

The stupid hurts.

https://www.washingtonpost.com/us-policy/2023/01/13/debt-ceiling-gop-plan/

[Anonymous]

Anonymous wrote:Kevin McCarthy made a secret deal with Chip Roy-led branch of the Freedom Caucus to get their votes for Speaker.

Congress won't raise the debt ceiling and then will dictate what government programs won't get funded. For example, Congress will still allow interest payments, social security, Medicare, the VA and the military to be funded. But then cut funding for, I don't know, school lunches, or the DOJ, or National Parks - whatever offends their delicate sensibilities - so the debt limit isn't breached.

The stupid hurts.

https://www.washingtonpost.com/us-policy/2023/01/13/debt-ceiling-gop-plan/

They want to pretend it is a budget, appropriations, and taxes vote. It isn’t. It is a pay your bills vote.

Debate the budget and appropriations and taxes in the budget, appropriations, and tax bills.

[Anonymous]

Anonymous wrote:Liberal spending has made the USA broke. Now all we can do is inflate the currency until hyper inflation brings down the hammer

Couldn't POSSIBLY be the trillions of dollars we pumped into bullshit wars in Iraq and Afghanistan, which the Republicans supported because hooah Murka military big dick something something
Couldn't POSSIBLY be the trillions in Republican tax cuts for billionaires and megacorporations who didn't need the tax cuts.

Nah, none of those could have had any possible impact.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The republicans can’t pass anything but can break the system. This will be very painful for many Americans.

Please forgive my ignorance. What are the implications?

Higher interest rates as debt is downgraded
Inflation
Feds not being paid (and we won’t work for free for long). This includes the military.
SS benefits being cut or not going out— disability and retirement
Medicare and Medicaid not being paid. Doctor’s stop seeing Medicare/ Medicaid patients
Rural Hospitals that are already in trouble fold
Food and drug safety inspections stop
Local public schools not receiving funding already allocated and in their budgets— including for SPED and Title 1. Teachers being laid off
Inability to process students loans or VA or FHA loans
4 hour lines at TSA and flights cancelled by FAA
No disaster assistance if there is an extreme weather event
Hold on aid to Ukraine (which I suspect is what Rs are aiming for with this)
Increased homelessness as Section 8 housing vouchers cease
Hunger as school lunch, WIC and TANF cease

I could keep going, but you get the idea.

And last time we got this close, they looked at prioritization of programs and paying 100% of some and 0% of others. In many cases it can’t be done because the federal budget is too complicated to do a line item decision on pay/no pay.
And not, they ca