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US to max out on debt soon, setting up political fight
AP ^ | 11 Jan 2023 | FATIMA HUSSEIN and JOSH BOAK

Posted on 01/11/2023 5:34:05 AM PST by blueplum

WASHINGTON (AP) — The federal government is on track to max out on its $31.4 trillion borrowing authority as soon as this month, starting the clock on an expected standoff between President Joe Biden and the new House Republican majority that will test both parties’ ability to navigate a divided Washington, with the fragile global economy at stake.

Once the government bumps up against the cap — it could happen any time in the next few weeks or longer — the Treasury Department will be unable to issue new debt without congressional action. The department plans to deploy what are known as “extraordinary measures” to keep the government operating. But once those measures run out, probably mid-summer, the government could be at risk of defaulting ....

(Excerpt) Read more at apnews.com ...


TOPICS: Constitution/Conservatism; Government; News/Current Events; Politics/Elections
KEYWORDS: debt; deficit; house; inflation; nationaldebt; treasury
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1 posted on 01/11/2023 5:34:05 AM PST by blueplum
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To: blueplum

As Bannon has explained on his show, don’t let them worry you with all their “we can’t let this happen because it will destroy the full faith and credit of the US monetary system” BS.

There’s still plenty of money left to pay those obligations, without raising the debt, as the debt always paid FIRST. There is NO chance of default. And they all know it.

If you catch anyone, whoever it is, making that claim, immediately strike them from your trustworthy list, if they happened to be there somehow.


2 posted on 01/11/2023 5:42:24 AM PST by Golden Eagle (The LGBT indoctrination agenda is designed to outlaw the Bible, and anyone who follows it.)
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To: blueplum
Of course a 1.7 trillion omnibus doesn't factor in at all.
Neither do billions allocated overseas to be laundered back into numbered accounts.
Trying to tee things up to raise the debt limit.
How about 'no'?

Notice the ones always pushing this don't actually produce anything except hot air and BS?

3 posted on 01/11/2023 5:42:26 AM PST by Tench_Coxe
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To: blueplum

1) Wild inflation on food - Check

2) Gasoline STILL higher than when President Trump left office - Check

3) WalMart and Amazon cancelling billions of dollars of orders - Check

4) Nancy Pelosi and Chuck Schumer spend ANOTHER $1.7 trillion dollars - Check

5) National Debt over $31 Trillion dollars - Probably $33 Trillion dollars - Check

6) Unfunded Liabilities - more than $173 Trillion dollars - Check

7) Jobs report wasn’t really what jobs report was supposed to be - Check

8) Paul Krugman says everything is fine - Check

9) California Democrats ban 70,000 diesel trucks used for shipping - Now in effect after legislation from 15 years ago - Check

10) Illegals invading America at the Southern Border - Check

What could possibly go wrong?


4 posted on 01/11/2023 5:42:28 AM PST by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: blueplum

“the government could be at risk of defaulting”
_____________________________

How many times have we heard this? Oh no..... They better raise the debt ceiling. They didn’t realize this was coming when they just passed the omnibus bill which they didn’t read?
The bill 18 Republicans (who didn’t read it either) signed on to.

Why do we let them get away with this stuff?


5 posted on 01/11/2023 5:43:39 AM PST by xenia ( “The further a society drifts from truth the more it will hate those who speak it” George Orwell)
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To: blueplum

Sounds like we are going to find out, pretty soon, whether are not the new republicans in the house are up to the task.


6 posted on 01/11/2023 5:46:56 AM PST by farmguy
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To: blueplum

“The validity of the public debt...shall not be questioned.”

After a default, courts will almost certainly require on time debt payouts and the Treasury will require all Treasury payout decisions to be consistent with timely debt payment.

This is the time to fight. There’s nearly two years to the next Congress.


7 posted on 01/11/2023 5:48:18 AM PST by Brian Griffin
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To: blueplum

As long as Uncle Sam pays more than Woke Corporation, Uncle Sam will be able to borrow, eventually at a lower rate than any other US entity.


8 posted on 01/11/2023 5:52:44 AM PST by Brian Griffin
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To: xenia
Why do we let them get away with this stuff?

Because we don't have the balls to pick up the pitchforks and torches!!

9 posted on 01/11/2023 5:53:33 AM PST by Roccus (First we beat the Nazis........then we defeated the Soviets....... Now, we are them.)
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To: Brian Griffin

There’s ZERO chance of default. It’s just an obvious scare tactic. Debt payments are always paid first. Debt ceiling increases are always made to pay the last junk they just added.

One idea I’ve heard is the House may just approve a flat dollar figure for what’s approved for 2023, that matches what was spent in 2022, and send that to the Senate saying “that’s all you’re getting, so send us back how you will distribute things to make it fit and we’ll vote on that.”


10 posted on 01/11/2023 5:56:12 AM PST by Golden Eagle (The LGBT indoctrination agenda is designed to outlaw the Bible, and anyone who follows it.)
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To: SaveFerris

Don’t forget:

China real estate bubble
US real estate bubble
Credit Suisse and Deutsche Bank health
TSMC cut chip production by 50%
Neocons perpetual war footing
Etc.


11 posted on 01/11/2023 5:56:41 AM PST by EEGator
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To: blueplum

Lots of bills

Reform A, $100 billion increase
Reform B, $200 billion increase
Reform C, citizenship renunciation after 9 instead of ten years, $500 billion
....
Reform P, PPACA part-time threshold 30 to 31 hours, $500 billion

Let’s give the Democrats lots of choices.


12 posted on 01/11/2023 5:58:55 AM PST by Brian Griffin
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To: Golden Eagle

The US Treasury rakes in approximately +/- $11B a day. Day in, day out. They got money. OUR MONEY.


13 posted on 01/11/2023 5:59:48 AM PST by central_va (I won't be reconstructed and I do not give a damn...)
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To: blueplum

In order to avoid default all Deep State has to do is continue paying interest on our debt.

That can easily be done with incoming revenue.

This article is as big a load of bushwa as the government shutdown scaremongering articles are.


14 posted on 01/11/2023 6:05:02 AM PST by mewzilla (We will never restore the republic if we don't first secure the ballot box.)
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To: EEGator
If the Debt Ceiling isn't raised then the government will have to Shut-Down and we won't get OUR:

Social Security checks
Welfare checks
Food Stamps and WIC
Aid for Ukrainian War
PAY CHECKS AND RAISES FOR GOVERNMENT WORKERS

15 posted on 01/11/2023 6:05:48 AM PST by KC Burke
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To: xenia

There is no risk of default.

Fedzilla NEVER shuts down.

Deep State is trying to snooker us.

Again.


16 posted on 01/11/2023 6:06:04 AM PST by mewzilla (We will never restore the republic if we don't first secure the ballot box.)
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To: blueplum
There’s a simple way to avoid this. Stop spending money they don’t have. I’ve already heard Republicans rationalize the need to raise the debt ceiling. They lie. They say raising the debt ceiling is needed only for money already spent. Bull crap. If government stopped spending today, it wouldn’t need the debt ceiling raised tomorrow. These eff’n RINOs and Democrats don’t use logic and expect people to believe them.

They have appropriated more money than there is revenue (taxes & tariffs). Appropriating is not spending. It is the authorization for spending. Who authorizes the spending? Congress does. If they can authorize it, they can unauthorize it. The debt limit need not be raised. Spending simply needs to be lowered.

It’s not all spending that needs to be cut. The delta between authorized spending and current revenues needs to be cut. I’m sure these fiscally irresponsible politicians will lie and say that can be done. That’s bull crap. Anyone of Free Republic can make a list of government agencies and programs to cut that will far exceed solving the debt limit problem. In fact, it will improve the economy by cutting regulators and concurrently increase freedom and liberty. It’s not a crisis. It’s an huge opportunity.

Yes, a partial government shutdown will probably be required since it will take them forever to agree to cuts. That’s okay, a shutdown achieves the same goals. I don’t give a damn about lazy ass government employees being laid off. They cause our economic problems. They are the enemy.

17 posted on 01/11/2023 6:06:33 AM PST by ConservativeInPA (Stupidly is a moral problem, not an intellectual problem. )
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To: KC Burke

I have a feeling that it will be raised.(over and over again)


18 posted on 01/11/2023 6:07:12 AM PST by EEGator
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To: KC Burke

During a so-called shutdown anything Deep State wants to keep running gets deemed essential and continues running.

If something is closed it’s because Deep State is trying to stick it to us.

When did we become such a nation of fricking pantywaists?!


19 posted on 01/11/2023 6:07:47 AM PST by mewzilla (We will never restore the republic if we don't first secure the ballot box.)
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To: EEGator; dpetty121263

Crypto-currency failings (I’ve lost count - we need a perpetual thread to track them all)

Digital Currency now becoming a thing in jolly old England too


20 posted on 01/11/2023 6:14:22 AM PST by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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