Republicans and the debt ceiling

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What happens when you default on your debts?

The banks raise your interest rates…

On $31 trillion dollars…

That will cost the United States more than any of the proposed spending cuts.

You have it backwards. All this debt makes inflation go higher and interest rates go higher.
On $31 trillion dollars.

The debt it already there. the inflation happened because of the recovery from COVID as evidenced by HIGHER inflation in other industrialized countries. If the Biden spending was the problem, the inflation would be higher in the US, but it isn't.

That said, we already have the debt. So causing an economic crash and driving interest rates higher and particularly the rates the US government pays, sim,ply means that that cost to service the debt goes up and the country gets less for its money, thus costing more than it does now.

We can lower the debt limit.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What happens when you default on your debts?

The banks raise your interest rates…

On $31 trillion dollars…

That will cost the United States more than any of the proposed spending cuts.

You have it backwards. All this debt makes inflation go higher and interest rates go higher.
On $31 trillion dollars.

The debt it already there. the inflation happened because of the recovery from COVID as evidenced by HIGHER inflation in other industrialized countries. If the Biden spending was the problem, the inflation would be higher in the US, but it isn't.

That said, we already have the debt. So causing an economic crash and driving interest rates higher and particularly the rates the US government pays, sim,ply means that that cost to service the debt goes up and the country gets less for its money, thus costing more than it does now.

We can lower the debt limit.

Yes by reversing Trump’s tax cuts for the ultra rich and corporations -

[Anonymous]

The fundamental problem here is that McCarthy does not have the votes for any deal he cuts with Biden, but he does not seem to recognize that fact. 30-50 of his members are extreme wackos who will vote against anything, and the Rs don't control the Senate (and there are probably 10 Rs in the Senate who are extreme wackos who will vote against anything). So he's got to cut a deal that will get 50 plus D votes in the House and 30 plus D votes in the Senate. But he's not offering the Ds anything at all. He won't reform prescription drug pricing, won't close the carried interest loophole, won't increase taxes on wealthy, and won't cut defense spending. Negotiation means both sides get something and give up something. But it's just demands from McCarthy with no give.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What happens when you default on your debts?

The banks raise your interest rates…

On $31 trillion dollars…

That will cost the United States more than any of the proposed spending cuts.

You have it backwards. All this debt makes inflation go higher and interest rates go higher.
On $31 trillion dollars.

The debt it already there. the inflation happened because of the recovery from COVID as evidenced by HIGHER inflation in other industrialized countries. If the Biden spending was the problem, the inflation would be higher in the US, but it isn't.

That said, we already have the debt. So causing an economic crash and driving interest rates higher and particularly the rates the US government pays, sim,ply means that that cost to service the debt goes up and the country gets less for its money, thus costing more than it does now.

We can lower the debt limit.

Yes by reversing Trump’s tax cuts for the ultra rich and corporations -

This 100%

[Anonymous]

Anonymous wrote:The fundamental problem here is that McCarthy does not have the votes for any deal he cuts with Biden, but he does not seem to recognize that fact. 30-50 of his members are extreme wackos who will vote against anything, and the Rs don't control the Senate (and there are probably 10 Rs in the Senate who are extreme wackos who will vote against anything). So he's got to cut a deal that will get 50 plus D votes in the House and 30 plus D votes in the Senate. But he's not offering the Ds anything at all. He won't reform prescription drug pricing, won't close the carried interest loophole, won't increase taxes on wealthy, and won't cut defense spending. Negotiation means both sides get something and give up something. But it's just demands from McCarthy with no give.

Which is why I submitted 5 pages ago the Dems should agree to vote for McCarthy for one round, if McCarthy agrees to a moderate deal on this.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The fundamental problem here is that McCarthy does not have the votes for any deal he cuts with Biden, but he does not seem to recognize that fact. 30-50 of his members are extreme wackos who will vote against anything, and the Rs don't control the Senate (and there are probably 10 Rs in the Senate who are extreme wackos who will vote against anything). So he's got to cut a deal that will get 50 plus D votes in the House and 30 plus D votes in the Senate. But he's not offering the Ds anything at all. He won't reform prescription drug pricing, won't close the carried interest loophole, won't increase taxes on wealthy, and won't cut defense spending. Negotiation means both sides get something and give up something. But it's just demands from McCarthy with no give.

Which is why I submitted 5 pages ago the Dems should agree to vote for McCarthy for one round, if McCarthy agrees to a moderate deal on this.

He'd lose his speakership. and he knows it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The fundamental problem here is that McCarthy does not have the votes for any deal he cuts with Biden, but he does not seem to recognize that fact. 30-50 of his members are extreme wackos who will vote against anything, and the Rs don't control the Senate (and there are probably 10 Rs in the Senate who are extreme wackos who will vote against anything). So he's got to cut a deal that will get 50 plus D votes in the House and 30 plus D votes in the Senate. But he's not offering the Ds anything at all. He won't reform prescription drug pricing, won't close the carried interest loophole, won't increase taxes on wealthy, and won't cut defense spending. Negotiation means both sides get something and give up something. But it's just demands from McCarthy with no give.

Which is why I submitted 5 pages ago the Dems should agree to vote for McCarthy for one round, if McCarthy agrees to a moderate deal on this.

He'd lose his speakership. and he knows it.

I'm having a hard time seeing how he comes out of this fight without losing the speakership.

[Anonymous]

Anonymous wrote:The fundamental problem here is that McCarthy does not have the votes for any deal he cuts with Biden, but he does not seem to recognize that fact. 30-50 of his members are extreme wackos who will vote against anything, and the Rs don't control the Senate (and there are probably 10 Rs in the Senate who are extreme wackos who will vote against anything). So he's got to cut a deal that will get 50 plus D votes in the House and 30 plus D votes in the Senate. But he's not offering the Ds anything at all. He won't reform prescription drug pricing, won't close the carried interest loophole, won't increase taxes on wealthy, and won't cut defense spending. Negotiation means both sides get something and give up something. But it's just demands from McCarthy with no give.

Agree with your analysis -

Do you think there is any hope for 14th amendment or other solution to resolve this crisis?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What happens when you default on your debts?

The banks raise your interest rates…

On $31 trillion dollars…

That will cost the United States more than any of the proposed spending cuts.

You have it backwards. All this debt makes inflation go higher and interest rates go higher.
On $31 trillion dollars.

The debt it already there. the inflation happened because of the recovery from COVID as evidenced by HIGHER inflation in other industrialized countries. If the Biden spending was the problem, the inflation would be higher in the US, but it isn't.

That said, we already have the debt. So causing an economic crash and driving interest rates higher and particularly the rates the US government pays, sim,ply means that that cost to service the debt goes up and the country gets less for its money, thus costing more than it does now.

We can lower the debt limit.

Yes by reversing Trump’s tax cuts for the ultra rich and corporations -

That will reduce revenues.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The fundamental problem here is that McCarthy does not have the votes for any deal he cuts with Biden, but he does not seem to recognize that fact. 30-50 of his members are extreme wackos who will vote against anything, and the Rs don't control the Senate (and there are probably 10 Rs in the Senate who are extreme wackos who will vote against anything). So he's got to cut a deal that will get 50 plus D votes in the House and 30 plus D votes in the Senate. But he's not offering the Ds anything at all. He won't reform prescription drug pricing, won't close the carried interest loophole, won't increase taxes on wealthy, and won't cut defense spending. Negotiation means both sides get something and give up something. But it's just demands from McCarthy with no give.

Agree with your analysis -

Do you think there is any hope for 14th amendment or other solution to resolve this crisis?

The GOP destroyed the emoluments clause and now they are destroying the 14th Amendment. At what point is the Constitution meaningless?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The fundamental problem here is that McCarthy does not have the votes for any deal he cuts with Biden, but he does not seem to recognize that fact. 30-50 of his members are extreme wackos who will vote against anything, and the Rs don't control the Senate (and there are probably 10 Rs in the Senate who are extreme wackos who will vote against anything). So he's got to cut a deal that will get 50 plus D votes in the House and 30 plus D votes in the Senate. But he's not offering the Ds anything at all. He won't reform prescription drug pricing, won't close the carried interest loophole, won't increase taxes on wealthy, and won't cut defense spending. Negotiation means both sides get something and give up something. But it's just demands from McCarthy with no give.

Agree with your analysis -

Do you think there is any hope for 14th amendment or other solution to resolve this crisis?

The GOP destroyed the emoluments clause and now they are destroying the 14th Amendment. At what point is the Constitution meaningless?

When our militias cease to be well-regulated, obviously.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Not sure why pp contends this crisis is a total win for KM. He has a paper thin majority and is being held hostage in his negotiating powers by know nothing right wing extremists. How is this inability to lead in a rational good faith way a win?
I hope Biden finds a way to move forward with 14th Amendment .

Despite what Biden, McCarthy, and the media say, the 14th amendment says debts authorized by law must be honored. If Congress doesn't raise the debt ceiling, then any debts incurred by Biden do not have to be paid. Also, Biden is required by the 14th amendment to make payments on the current debt.

14th amendment does not abrogate separation of powers between the executive and legislative branches. The House plays a pivotal role in spending.

Even the lawyers at 1600 Pennsylvania Ave recognize that fact.

The House already did that when they passed various budgets and unfunded tax cuts. The Congress has already obligated that the USG spend this money.

Unfunded tax cuts? No.There's no such thing. Taxes fund spending, not the other way around. The tax payer earns money through work and the govt takes it. Just to clear up your confusion.

The House passed a bill to cut spending. Biden doesn't want to sign it.

[Anonymous]

IOW, totally manufactured threat and crisis from the right

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Not sure why pp contends this crisis is a total win for KM. He has a paper thin majority and is being held hostage in his negotiating powers by know nothing right wing extremists. How is this inability to lead in a rational good faith way a win?
I hope Biden finds a way to move forward with 14th Amendment .

Despite what Biden, McCarthy, and the media say, the 14th amendment says debts authorized by law must be honored. If Congress doesn't raise the debt ceiling, then any debts incurred by Biden do not have to be paid. Also, Biden is required by the 14th amendment to make payments on the current debt.

14th amendment does not abrogate separation of powers between the executive and legislative branches. The House plays a pivotal role in spending.

Even the lawyers at 1600 Pennsylvania Ave recognize that fact.

The House already did that when they passed various budgets and unfunded tax cuts. The Congress has already obligated that the USG spend this money.

Unfunded tax cuts? No.There's no such thing. Taxes fund spending, not the other way around. The tax payer earns money through work and the govt takes it. Just to clear up your confusion.

The House passed a bill to cut spending. Biden doesn't want to sign it.

Because most of the spending that they want to cut is not discretionary. And....that is a BUDGET issue. This is a debt issue, two different things, so stop conflating them.

And yes, if you are going to have tax cuts, then you need to cut spending, otherwise, you run up debt. So the GOP has cut taxes multiple times without corrpesonding cuts in spending, and then they blame the Dems.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The fundamental problem here is that McCarthy does not have the votes for any deal he cuts with Biden, but he does not seem to recognize that fact. 30-50 of his members are extreme wackos who will vote against anything, and the Rs don't control the Senate (and there are probably 10 Rs in the Senate who are extreme wackos who will vote against anything). So he's got to cut a deal that will get 50 plus D votes in the House and 30 plus D votes in the Senate. But he's not offering the Ds anything at all. He won't reform prescription drug pricing, won't close the carried interest loophole, won't increase taxes on wealthy, and won't cut defense spending. Negotiation means both sides get something and give up something. But it's just demands from McCarthy with no give.

Agree with your analysis -

Do you think there is any hope for 14th amendment or other solution to resolve this crisis?

The 14th amendment idea seems dumb to me. Not a lawyer so I don't know what the courts would ultimately say, but I don't really think that matters because the market reaction would very likely be bad because the debt may turn out to be illegal. That would cause many of the same problems as a default.

If I'm the admin, I'm looking at two options. First is stopping payments to contractors, hospitals, state governments, and big businesses. These folks have the ear of republicans and stopping those payments won't immediately have too bad economic outcomes. Second is trying to find some more "extraordinary measures" that would let me push the X date into the fall past Sept. 30. That would drive this into the regular budget season where it could be resolved under the normal government shutdown threats, and where Biden will have a strong hand to blame the Rs for the shutdown.