Appreciate the reply. My question is can the house now refuse to raise the limit without cuts from the authorized omnibus spending, like the 87000 IRS hires for example? By not passing a debt limit increase, do we somehow regain power of the purse, through a spending freeze or otherwise?
The fact that I had to ask the question shows how ridiculously convoluted the government spending process has become...
The debt limit is part of the US law so it does give the House leverage to demand cuts to the Ominibus bill. My point was that this is all politics and not an actual threat to any default on US debt.
Modern Monetary Theory (MMT) is not a theory, its an observation of how the Fed and Treasury actually work to create money needed by the government. The “debt ceiling” club still works because most people, including Janet Yellen, either don’t understand MMT, or don’t want to let people in on the truth because it could create social unrest. The use of unemployment to curb inflation is actually an unnecessary form of punishment on wage earners to do what raising taxes on everyone would do more fairly.