As things stand now, House Republicans will cause the United States to default on its debts

Given your original post there wasn't much of value to comment on.

 

If we default on our debt we may not be able to borrow one more dollar.

 

You & I understand that

Our elected leaders either don't or don't care.

 

Wrong as usual it will be Biden's failure to negotiate. Like it or not the deal is on the table, so it is in Joe's court whether he wants to make a counter proposal. The refusal to go long with raising the debt by half as the Democrats want is not only bad for the country it is horrible for the rest of the world.

 

So your idea of fixing things is to call the credit card company and asking them to raise your credit level.. Holy Moly, I don't live my life that way and I hope you don't either!

But I have a question, are you looking forward to the near future where you are issued a fed card and they then, control everything you buy and pay your debts BEFORE you have a chance to budget your money as you wish..

Because that's where we are headed

 

Suddenly, McCarthy came up with his spending cuts without giving the President a chance to negotiate. Is this something he came up with on his own, or did his caucus meet and agree to these proposals?

It sounds like the former. It sounds like McCarthy is on his own. That is not very bright.

CNBC reports, "House Speaker Kevin McCarthy, R-Calif., on Wednesday released his plan to raise the debt ceiling by $1.5 trillion for about a year while attempting to repeal major components of President Joe Biden’s agenda.

"McCarthy said the bill, called the Limit, Save, Grow Act of 2023, would save American taxpayers more than $4.5 trillion by limiting discretionary spending, retrieving unspent pandemic-related funds, eliminating Biden’s student loan forgiveness plan and cutting funds earmarked for the Internal Revenue Service.

"The cuts would be in exchange for a one-year debt ceiling increase. McCarthy called on Biden and Senate Majority Leader Chuck Schumer, D-N.Y., to “sit down, negotiate and address this crisis” but he did not mention whether the bill has enough support to pass.

"McCarthy did not say when he would bring the bill to a vote in the House. It still wasn’t clear whether he had support within his own caucus to pass the bill."

This is incredible. McCarthy called on the President and the Senate Majority Leader before getting the approval of his caucus, and he does not know when, or if, his bill will be voted on.

He has nothing. His bill is merely a political ploy for the benefit of the Republican base. In over five decades of covering politics, I have never heard of anything so stupid.

Extraordinary measures to avoid the first-ever U.S. sovereign debt default are on track to run out this summer, and the Republican Speaker is playing games.

 

Even if his bill somehow passes the House, it is dead on arrival in the Democratically-controlled Senate.

 

You quoted an earlier report. There are fast moving developments in this crisis created by House Republicans.

Do try to stay current.

 

The same old same old issue Republicans cannot come to agreement among themselves on anything but tax cuts.

 

Meaning the Federal Government would finally be forced to live within its means.

The horror....

 

Biden and Democrats need to wise up on this issue. They have not spent all of the Covid money, and they won't pull it back despite the fact that the Federal Government has declared that the crisis is "over."

The national debt has reached the point where the interest paid on it is soon going to be higher than the money we spend on national defense. With China, Russia, Iran and North Korea raising hell, do you think that is a good position for this nation?

 

It would work itself out over many years but the transient conditions will kill the country. That is why they need to get a handle on the spending issues before any debt default.

 

The obvious solution is to eliminate annual deficits. REDUCE SPENDING! It shoudn't be too difficult to do since about half (or more) of federal programs the federal government is not authorized to be involved in under their enumerated powers

 

That was as of the time I posted it. Biden refuses to deal therefore it is on him

 

Biden isn't the legislature.

The legislature has the duty of creating budgets, starting in the House.

McCarthy would love to ignore the Senate, I'm sure.

 

I read the proposal. It is the four big talking points of the GOP in the House since the GOP took over. They want to spend at 2022 levels. For the Freedom Caucus, that is not far enough. They are still trying to defund the $80 billion in IRS funding over the years. Their messaging of fear failed, so they are trying the debt ceiling gimmick to get it passed. The bill they passed earlier this year will not make it through the Senate. They want to get rid of the new green energy credits, the very same credits that were established in the Bush Administration in both the 2001 and 2003 Tax Acts, expanded under Obama, went away for the most part under Trump and JCTA, and then re-established in the infrastructure bill. The problem for the GOP, these credits are being used primarily in Red States, offering jobs, among other things, and being mostly claimed by the Big Oil Companies as well. Get rid of these credits, with the current EPA standards, and gas prices will go up. So its tricky. Third, they want to place work requirements or additional work requirements. The first attempt under the Welfare Reform Act didn't go well as GOP had hoped for, so this time isn't any different. And finally, unused Covid funds, which is something that both parties can generally agree on.

Given its current structure, and how much power, which has been almost all of it, that Speaker McCarthy has given away to obtain the speakership, it will be almost impossible to keep all the GOP in line and pass it. If it fails in a GOP-controlled house, that is just another notch in McCarthy's failure as speaker.

All in all, its a gimmick, a trick, a political trick so that by 2024, March, we will be in the same boat again, and the GOP thinks it can use that as a talking point in the upcoming 2024 elections. In fact, it will harm the GOP more than it will help or even help the country.

 

Well, the Senate could just pass a no thrills debt increase of $5 Trillion over three years and that will pass the Senate, maybe, but not the House. But for the Dems in the House, they are pretty much powerless given who is leading the budgetary committee, House Ways and Means Committee, and who the Speaker is. Both don't want to give in, but for different reasons. Democrats in the House have the incentive to sit back and deny, which is pretty much what the GOP did for two years. And the GOP is on a messaging campaign in Congress to keep their base happy. And this has been brewing since the Bush Administration, and is now culminating now. Both parties are at fault, yes, but more so with the GOP and their messaging crap than Dems.

 

I would love to see Biden negotiate with Republicans but that's not how Democrats roll. Buckle-up for default....

 

Republicans simply cannot understand that future spending is totally different from the debt limit increase. It amazes me that they are so uninformed that they think the two are connected simply because McCarthy says so.

They are not. Future spending involves future negotiations and future votes.

Raising the debt ceiling allows the United States to pay off debt that has already been approved by Congress. This includes Social Security and Medicare. The Republican Speaker is a threat to those two programs.

Since 1960, Congress has acted 78 separate times to permanently raise, temporarily extend, or revise the definition of the debt limit – 49 times under Republican Presidents and 29 times under Democratic Presidents, including three times while Trump was President.
McCarthy, who does not have a plan that has been approved by his caucus -- meaning he has nothing to negotiate -- wants to change all that. He wants to use the debt ceiling as a hostage. He is going to lose that one.
The Times reports, "House Republicans [meaning McCarthy} on Wednesday unveiled a bill that would cut billions in federal spending and roll back some of President Biden’s policy priorities in exchange for lifting the debt ceiling for one year.

"After trying and failing to coalesce lawmakers around a budget blueprint of their own, Republican leaders [meaning McCarthy] have instead framed the legislation as an opening offer to Democrats and a way to get the White House to come to the negotiating table.

"Mr. Biden has insisted that Republicans raise the debt limit without any conditions and said he would not meet with them to discuss spending cuts until they passed their fiscal plan.

"Speaker Kevin McCarthy said he would put the new legislation, which Republicans claim would save the nation $4.5 trillion, to a vote next week."

He is lying.

McCarthy is a proven liar. He says what he thinks the base of his party will applaud. Truth is not a requirement.

Speakers do not bring a bill to the floor unless they know it is going to pass. As reported, McCarthy's caucus does not agree with his plan. In other words, he has nothing.

 

The legislature hasn't created a budget at least since Obama was elected. Certainly not in the fashion it was prior to Gerald R. Fords veto of a massive pork barrel bill in 1973.

 

OK, but the same rules apply to spending bills, delaying budgets, and other financial maneuvers.

As it is today, McCarthy is having all the predicted problems of trying to lead his House Republicans.

 

This claim isn't Einsteinian by any means. The GOP had nothing to do with the fact that Dems FY 2022 spending plan exceeded the debt limit. They should have either raised the debt limit or lowered spending to the limit allowed by law.

Time for Biden and the Dems to learn to live within their means just like they have forced all of us to.

We've Taken a Pay Cut Every Month Since Biden Took Office


Under Biden, Americans Have Taken A Pay Cut every month.

'He also noted the average American family has lost the equivalent of more than $7,000 in annual income. There is a direct link between spending, borrowing and printing trillions of dollars, and these disastrous results for Americans. President Biden has spent trillions of dollars the nation didn’t have. These unchecked costs drove the deficit to record highs and pushed the debt over $31 trillion.'


House Speaker Kevin McCarthy has laid out the results of runaway government spending on the middle class.

'The Federal Reserve simply created the money for the government to spend, and that devalued the dollar with four-decade-high inflation. That incredible increase in consumer prices explains why workers feel poorer although they’re making more money.'

'According to the Bureau of Labor Statistics, average weekly earnings are up 9% since Biden took office, but consumer prices have risen 14.9% over that same time. The result is that real earnings (meaning earnings adjusted for inflation) are down 5.1% under Biden.'


The average working American family has lost $5,600 in purchasing power under Biden because of rampant inflation, according to reports.

'When runaway spending finally caused so much inflation that even the bureaucrats couldn’t ignore it, the Fed belatedly began raising interest rates to put out the fire. While that helped slow the rise in prices, it created other pain for families by raising borrowing costs.'

'Those higher borrowing costs on everything from mortgages to credit cards and auto loans to student loans have further increased the average family’s expenses by $1,500 per year.'

There massive overspending has caused us to tighten our belts, now they can tighten their's a little to help reduce the pressure on our real wages.

'The combined effect is the equivalent of a $7,100 cut in annual purchasing power. That’s more than a month’s pay for half the households in the country. And it’s worth noting that’s just the average — some people are even worse off.'

'If you’re trying to buy a home today, the monthly mortgage payment on a median-priced home is 82% higher than when Biden took office. If the pain is to end, the spending must be reined in.'

It was Dems who planned on spending more this fiscal year than the debt ceiling allowed.

Since Illegitimate Joe and Chuckles Schumer will not even hold a discussion with the House on raising the debt ceiling, the House should simply pass a bill that raises the debt ceiling by the amount they will need to accommodate fy 2023 deficit spending, along with the sensible reductions in spending for Biden and the Dems for the rest of the fiscal year which ends in just 5 months, and then adjourn and leave town.

That way, when Chuckles Schumer and Illegitimate Joe are ready to start spending money again, Chuckles can pass the bill and Biden can sign it, and they can start deficit spending again.

 

Economists point out causes for and methods of controlling inflation.

And, you are off by a million miles.

Biden is not responsible for world wide supply chain problems.

He is not responsible for world wide increases in oil price.

 

They have a plan.

Joe is just setting on his ass hoping the Republicans fold. That isn't leadership, that's dodging.