Money tree getting bare

Last Friday, Treasury Secretary Janet Yellen warned the United States is projected to hit its $31.4 trillion debt borrowing limit by the end of this week. In short, due to unchecked federal spending, Congress will need to raise the nation’s debt limit to prevent the United States from defaulting on its financial obligations. Current law constrains the U.S. Department of the Treasury from issuing debt to meet the government’s ongoing cash needs by creating a statutory ceiling called the debt limit.

Once the debt limit is reached, the Treasury cannot borrow more money and will not have enough revenue to meet all its obligations unless Congress passes new legislation raising or suspending the debt limit. Once the debt limit is reached, Secretary Yellen can exercise some limited accounting moves, known as “extraordinary measures,” that can buy some time. But the government will eventually run out of cash if the debt limit is not raised by Congress.

House Speaker Kevin McCarthy has warned that he will consider using the debt ceiling to force cuts to critical programs: “You can’t just continue down the path to keep spending and adding to the debt. … [Y]ou got to change your current behavior. We’re not just going to keep lifting your credit card limit, right?”

With a Democrat President Biden promising to veto every law passed by the Republican House and the Senate maintaining a slim Democrat majority, the House Republicans need to take advantage of every opportunity to use the leverage they do have. When asked what changes in spending might be needed for Republicans to support raising the debt limit, McCarthy said he would not “predetermine” anything. In other words, all spending and entitlements are on the table for consideration.

It’s clear that eventually, the House will have to act to raise the debt limit. If they don’t, the nation would go into default with clear disastrous consequences. It always has. Congress has raised the debt limit seventy-eight times since 1960, under both Republican and Democratic presidents. It was raised while President Trump was president, but that didn’t stop him from suggesting that House leaders use the debt limit to move forward with needed change. Writing on Truth Social, Trump asserted, “Republicans can get almost everything back…by simply playing tough in the upcoming debt ceiling negotiations.”

What happened to all the fiscal conservatives? :zipper_mouth_face: :sleeping: :sleeping:

Remember the left will use the seniors and the poor as cannon fodder to ensure they get ore money to waste on their fav items like resettling millions of future voters. The the media will have a field day at the rights expense.

Congress Urged To Raise Theft Ceiling

Politics · Jan 17, 2023 ·

WASHINGTON, D.C. — With the deadline fast approaching to increase the amount of money that can be legally stolen from the American people, Congress is being urged to come together and raise the nation’s theft ceiling without conditions.

“We need to end the partisan bickering,” said House Speaker Kevin McCarthy. “The American people need us to reach across the aisle to steal more and more wealth from them and their future generations. If we don’t do this quickly, Congressional pay might be suspended and national parks might close. In other words, we’re all gonna die if we don’t get this done.”

Republicans have sparked showdowns over the theft ceiling in the past, often demanding mild spending cuts so that Americans’ stolen wealth will be used more responsibly. Economic experts say this is because they’re evil and want people to die. Democrats, however, insist there should be no limit to how much money can be stolen from Americans since Americans are all racist and don’t deserve money anyway. It remains to be seen whether any theft ceiling compromise will be made between the two parties before the deadline.

At publishing time, Republicans had already agreed to raise the theft ceiling without conditions.

Countless times too !!! :face_with_symbols_over_mouth: :face_with_symbols_over_mouth: :face_with_symbols_over_mouth: :face_with_symbols_over_mouth:

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Vote maga next time :clap::clap::clap:

It appears we only have 1 party now . RINO’s show no fiscal responsibility . Trump is responsible for making the majority of RINO’s . :clown_face:

GO RON D 2024

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Afr the complete disaster of Biden he would still win over Trump today so say the polls.

When a utter moron beats you time to hung it up and stick to being a carnival barker ! :rofl: :rofl: :rofl: :clown_face: :clown_face: :clown_face:

GO RON D 2024

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U.S. hits debt ceiling as partisan standoff sparks economic worries

By David Morgan

and David Lawder

WASHINGTON, Jan 19 (Reuters) - The U.S. government hit its $31.4 trillion borrowing limit on Thursday, amid a standoff between the Republican-controlled House of Representatives and President Joe Biden’s Democrats on lifting the ceiling, which could lead to a fiscal crisis in a few months.

Treasury Secretary Janet Yellen informed congressional leaders including House Speaker Kevin McCarthy that her department had begun using extraordinary cash management measures that could stave off default until June 5.
Republicans, with a newly won House majority, aim to use the time until the Treasury’s emergency maneuvers are exhausted to exact spending cuts from Biden and the Democratic-led Senate.
Corporate leaders and at least one credit ratings agency warned a long standoff could rattle markets and unsettle an already shaky global economy.

Yellen warned that the June date was subject to “considerable uncertainty” due to the challenge of forecasting payments and government revenues months into the future.

Latest Updates

“I respectfully urge Congress to act promptly to protect the full faith and credit of the United States,” Yellen told congressional leaders in a letter Thursday.

But there was no sign that either Republicans or Biden’s Democrats were willing to budge.
Republicans are trying to use their narrow House majority and the debt ceiling to force cuts to government programs, and argue that the Treasury could avoid default during a standoff by prioritizing debt payments. This idea has been explored in past standoffs, but financial experts have questioned its feasibility.
The White House is rejecting the idea out of hand.

“There will be no negotiations over the debt ceiling,” White House deputy press secretary Olivia Dalton reiterated Thursday aboard Air Force One. "Congress must address this without conditions as they did three times under (Republican former President) Donald Trump,”


The prospect for brinkmanship has raised concerns in Washington and on Wall Street about a bruising fight over the debt ceiling this year that could be at least as disruptive as the protracted battle of 2011, which prompted a downgrade of the U.S. credit rating and years of forced domestic and military spending cuts.

Moody’s Investors Service on Thursday said it believed Congress would reach a deal to avert default, but that negotiations would go down to the wire, contributing to market volatility.
We’re not going to default on the debt. We have the ability to manage servicing and paying our interest. But we similarly should not blindly increase the debt ceiling," Representative Chip Roy, a leading conservative, told Reuters.

Roy dismissed concerns about unsettling markets and risking a recession.

“That’s what they say every time. It’s like clockwork,” Roy said in an interview. “We’re already barreling toward a recession. The question is what it’s going to look like - unless the combination of monetary policy and fiscal policy saves us from our stupidity of having spent so much money.”

But corporate leaders expressed concern over the standoff.

“I’m concerned and I’m going to take any opportunity that I can, and we can as a firm, to engage with people in Washington to try to make sure they understand that we don’t think that this is something that should be played with,” Goldman Sachs Group Inc (GS.N) Chief Executive David Solomon said in an interview on Thursday.

Senate Republican leader Mitch McConnell predicted that the debt ceiling would be lifted sometime in the first half of 2023 under conditions negotiated by Congress and the White House.
“It’s always a rather contentious effort,” McConnell told reporters at the University of Louisville.

“The important thing to remember is that America must never default on its debt. It never has, and it never will,” McConnell said, adding, “The very basic business of funding the government has become very controversial in my party.”

Congress adopted a comprehensive debt ceiling, the statutory maximum of debt the government can issue, in 1939, intending to limit its growth. The measure has not had that effect, as, in practice, Congress has treated the annual budget process – deciding how much money to spend – separately from the debt ceiling – in essence, agreeing to cover the costs of previously approved spending.

The Republican plan calls for balancing the federal budget in 10 years by capping discretionary spending at 2022 levels.

In the meantime, House Republicans are vowing to reject sweeping government funding bills from Senate Majority Leader Chuck Schumer, akin to the $1.66 trillion bipartisan omnibus package that Congress passed late last year.
Schumer, the Senate’s top Democrat, said in a statement: “Political brinkmanship with the debt limit would be a massive hit to local economies, American families and would be nothing less than an economic crisis at the hands of the Republicans.”

“We are optimistic that Democrats will come to the table and negotiate in good faith,” said Republican Representative Ben Cline, who leads a conservative task force on the budget and spending. “There’s a lot of room to negotiate when it comes to steps that can be taken to address the fiscal crisis that we find ourselves in.”

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The federal government faces an unsustainable fiscal future. If policies don’t change, debt will continue to grow faster than the economy. This year’s review of the nation’s fiscal health found:

  • Large annual budget deficits drive debt growth, as the government borrows money to finance spending that exceeds revenue
  • Medicare and Social Security costs drive spending increases, especially as the population continues to get older
  • Interest costs are projected to grow and could increase even faster if interest rates rise more than expected

Difficult policy decisions are needed to address the growing debt and change the government’s fiscal path.

What GAO Found

The federal government faces an unsustainable fiscal future. At the end of fiscal year 2021, debt held by the public was about 100 percent of gross domestic product (GDP), a 33 percent increase from fiscal year 2019. Projections from the Office of Management and Budget and the Department of the Treasury, the Congressional Budget Office, and GAO all show that current fiscal policy is unsustainable over the long term. Debt held by the public is projected to reach its historical high of 106 percent of GDP within 10 years and continue to grow at an increasing pace. This ratio could reach 217 percent of GDP by 2050, absent any change in fiscal policy.

Debt Held by the Public Projected to Grow Faster Than GDP

The underlying conditions driving this unsustainable fiscal outlook existed well before the COVID-19 pandemic and continue to pose serious challenges if not addressed.

**Federal Budget Deficit in Fiscal Year 2021 was Second La rgest in History

The fiscal year 2021 federal budget deficit of $2.8 trillion was the second largest in history, after the fiscal year 2020 deficit of $3.1 trillion. These historically large deficits were due primarily to economic disruptions caused by the COVID-19 pandemic—which decreased revenues in fiscal year 2020—and the additional spending by the federal government in response to the pandemic. Federal debt held by the public grew by about $5.5 trillion during fiscal years 2020 and 2021, reaching $22.3 trillion at the end of fiscal year 2021.
Increasingly Large Deficits Drive Unsustainable Debt Levels

In GAO’s simulation, starting in 2024, debt held by the public grows faster than GDP in every year. In most years, debt held by the public grows more than twice as fast as the economy, in real terms. The growing debt is a consequence of borrowing to finance increasingly large annual budget deficits. The total budget deficit is composed of two parts:

  • The primary deficit: the gap between non-interest (program) spending and revenue and
  • Spending on net interest: primarily the cost to service the debt.

Primary Deficit and Total Budget Deficit, Actual and Projected

In GAO’s simulation, increasing primary deficits are driving spending and revenue trends.

  • Spending: Medicare, other federal health care programs, and Social Security are requiring an increasingly large share of federal resources. Under GAO’s simulation, spending for both major federal health care programs and Social Security would account for 85 percent of projected revenue in 2050, up from 63 percent in 2019.
  • Revenue: Average annual revenue as a share of GDP was lower over the last 20 years than in prior decades. From 2000 to 2021, revenue averaged 16.8 percent of GDP annually, compared to annual average of 17.9 percent of GDP between 1980 and 2000.

Further, certain fiscal risks are not fully accounted for in the simulations. Consistent with CBO projections, GAO’s simulations assume that interest rates will increase over the next 30 years to 4.6 percent in 2051, from the historically low levels over the last 20 years. Interest rates higher than projected would further increase interest costs and debt. Other fiscal risks include potential delays in raising the debt limit and additional potential spending from certain fiscal exposures, such as such as potential global or regional military conflicts, public health crises, and natural disasters and climate change.

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