Posted on 05/16/2023 7:29:50 AM PDT by ChicagoConservative27
Treasury Department Secretary Janet Yellen warned Tuesday that “time is running out” for Congress to lift the debt ceiling and avert a default on the nation’s debt, which the secretary says would be catastrophic for the economy.
“Time is running out. Every single day that Congress does not act, we are experiencing increased economic costs that could slow down the U.S. economy,” Yellen said in remarks to the Independent Community Bankers of America.
Yellen’s department has warned that its ability to stave off a default through the use of extraordinary measures could run out by June 1 unless Congress takes action, and the White House has been locked in debate with lawmakers on how to address the looming deadline.
(Excerpt) Read more at thehill.com ...
Yellen warns of catastrophic default: ‘Time is running out
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Biden will deal with it when he returns from his week long Italian vacation.
Give us unlimited power to borrow and print money or we will sink the country. That’s what she’s saying.
At some point an adult in the room will take the punch bowl away and end this orgy...we hope.
The Dems playbook has been used over and over:
—Close national parks and monuments
—Only “essential” federal employees report to work
Start name calling and finger pointing.
Yawn.
CONGRESS already passed a debt ceiling increase, the Pedophile President is holding it up.
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The House passed it, but the bill was DOA in the Senate. Congress refers to BOTH houses.
There are some favorite conservative positions that do not hold water on this matter.
First is — stop spending and thus stop borrowing. Total spending is $6.3T (2022). Of that, about 23% is borrowed each year.
Of the $6.3T, $1.2T is Social Security. Medicare is $0.75T. Interest listed as $0.5T but that number is nearly double now from last year given rate increases. DoD is $0.75T. Notice I have excluded Medicaid and Welfare. These items add to $3.2T.
Before noting Medicaid, keep in mind 62% of nursing home residents are funded by Medicaid. It’s not only inner city poor getting Medicaid for healthcare. The majority of those $120K/yr nursing home residents are Medicaid because the elderly can’t fund that from Soc Sec. And for the other 38%, keep in mind many Skilled Nursing Facility residents are in rehab for surgery and might be only 40 yrs old, so no, Medicaid is not paying that. Point being, Medicaid is going to have to pay for nearly everyone over 65 in an SNF at some point before death. Medicaid is $0.6T.
Income security (welfare, section 8, food stamps) $0.6T.
The point there is you could ZERO, not reduce, ZERO the total of Medicaid and Income Security and STILL be borrowing money. And be paying for your parents nursing home out of YOUR pocket.
Second, spending rises with population.
Third, interest rates are rising.
Fourth, no the Fed cannot simply print the required deficit. “Print” means buy bonds issued by Treasury. It is those bonds that cannot be issued because of the debt ceiling. The Fed can certainly buy bonds if issued, that is what printing money has been for 15 years, but if bonds cannot be issued because of debt ceiling, the Fed cannot do the bailout.
Extraordinary measures LOL. They might seem extraordinary to your typical low-IQ lazy ass dip chit government employee that never had an eff'n real job in his life. (written with minor condescension). Extraordinary to a government scumbag is everyday in the life of a small businessman. In the business world, it is called prioritization. Some bills get paid sooner than others, particularly in difficult economic times.
Defaulting on the debt will only occur when government does not prioritize paying interest on the debt over paying for all the bull chit government programs. There is on-going revenue to pay the bills, but not all the bills. The government and government programs are ripe for downsizing. The vast majority of the people would never miss a 30% cut in government. The vast majority of tax payers would never miss a 50% cut in government. Your lives would go on and you might just feel a bit more free.
She talks like my Econ 101 professor. That woman made no sense either.
either way, it is the demonrats holding it up
“if bonds cannot be issued because of debt ceiling, the Fed cannot do the bailout.”
There is a hidden assumption there.
Let us put in out in the open and inspect it.
The assumption is that the US Treasury must obey the law.
It is only valid is there is someone who will punish those officials if they break the law.
See the flaw?
Every single day that Congress does not act, we are experiencing increased economic costs that could slow down the U.S. economy,” Yellen said
Then cut that final 6 billion we never had in the first place to Ukraine. Shut the border and send those people back to wherever they come from.
That will ease the burden.
Stopping the spending beyond your means is the first step. But they have to continually “roll over” the existing debt.
What Clinton did back in the 90’s was to restructure our debt profile and how we use debt. In essence, he moved the payment of expenses to longer term bonds. This is akin to paying all of your living expenses with a credit card. This works until the cost of servicing the debt shoots up. Then you are screwed.
Long term debt should be used for capital expenditures, not short term expenses.
Anyone “shocked” by this hasn’t been paying attention. And they haven’t been paying attention for at least 35 years.
This isn’t an R or D problem. This is a “politician” problem.
Captain Kangaroo threatens Americans...
Why can’t a single reporter ask her, ‘Madam Secretary, which payments will you pay and which ones will get missed?’ Why? Anyone? Class? Bueller?
Can you imagine going into a car dealer and they tell you they want to negotiate the sale with you; only to find out that their position is not budging an inch and the negotiation is actually to bring you up to their price?
‘Can you imagine going into a car dealer and they tell you they want to negotiate the sale with you; only to find out that their position is not budging an inch and the negotiation is actually to bring you up to their price?”
sounds totally normal to me..
So tell the Senate to hurry up
They say this every year or two. In reality if the debt ceiling is not raised the administration will be forced to cut spending. They will not default on the interest payments on the debt.
In a prior life—she was captain of the Titanic.
I doubt anyone at Treasury would risk it. That’s a very long statute of limitations. Risking a GOP president and DoJ.
The issue is not Treasury obeying the law. It would be all individuals involved.
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