Posted on 05/02/2023 8:52:58 PM PDT by SeekAndFind
On Monday, a brief glimmer of hope emerged that Joe Biden might set his arrogance and senility aside to do what’s right for the nation. As RedState reported, the president invited House Speaker Kevin McCarthy to the White House in a move that seemed like a path back toward sanity.
Unfortunately, that hope has been dashed. Biden is apparently planning to tell McCarthy what he’s already told him. Namely, that he won’t negotiate any deal to raise the debt ceiling (Yahoo News).
WHITE HOUSE: BIDEN WILL MAKE CLEAR TO CONGRESSIONAL LEADERS HE IS NOT GOING TO NEGOTIATE ON DEBT CEILING
— *Walter Bloomberg (@DeItaone) May 2, 2023
President Joe Biden will not negotiate over the debt ceiling during his meeting with four top congressional leaders on May 9, but he will discuss starting “a separate budget process” to talk about spending priorities, the White House said on Tuesday.
Biden on Monday summoned the four Senate and House of Representatives leaders — two fellow Democrats and two Republicans — to the White House next week, after the U.S. Treasury warned the government could run short of cash to pay its bills as soon as June 1.
“He is not going to negotiate on the debt ceiling,” White House press secretary Karine Jean-Pierre said. But the president “is willing to have a separate conversation about their spending, what they want to do with the budget.”
What an absolute cluster this has turned into. Why did Biden call a meeting if he plans to just reiterate his stubborn, economically suicidal position? And to be clear, that’s what this is. House Republicans have already passed a debt ceiling increase that includes a one percent spending increase on top of 2022 (i.e. already sky-high) spending levels. It also requires the government to take back unspent COVID-19 aid money, which seems like common sense three years on, and it cancels Biden’s student loan ploy, which has already been halted by the courts anyway.
In other words, Biden could offer a few concessions to McCarthy, solidify a bi-partisan deal, and basically lose nothing as far as his agenda goes. There is no risk here for the White House. Yet, the president refuses to even negotiate while the financial futures of millions of Americans hang in the balance. It’s an inexplicable decision given the tenuous nature of the economy, which has seen growth slow to a trickle as interest rates have risen.
On second thought, I take that back. It’s not actually inexplicable because I think the explanation is pretty simple when you think about it. Biden knows he’s already run the economy off a cliff. It’s just a matter of time before the remains slam into the ground and burst into flames. With that in mind, what better way to obfuscate from the damage he’s done than to force a debt default? Then he can blame the massive economic downturn that was going to happen anyway on Republicans.
That makes a heck of a lot more sense, doesn’t it?
Destroy the economy? It wouldn’t take much more to put over the tipping point.
No, its because that’s been his plan all along.
For the same reason why he put troops on the border.
For show.
And so what can we as average citizens, expect this to look like?
How is it going to affect us?
His BS plan is working.
He doesn’t fear it because he knows he won’t be blamed if it happens. I don’t think he cares about the consequences.
>> I don’t think he cares about the consequences.
I don’t think he understands how to change his Depends, let alone the consequences of his demented policies.
(Which, of course, aren’t his policies at all. It’s handy for his handlers to have a demented octogenerian as “president”.)
1) The government will be shut down.
2) The “hate America news media” will blame it on the republicans.
3) The republicans will cave in.
GOP will cave. They ALWAYS do. I guarantee it 100%.
I created keyword BidenDestroysEconomy a few months ago. I didn’t mean to prognosticate.
RE: How is it going to affect us?
I’m not sure what this “it” you are referring to is.
I am assuming that by “It”, you are referring to the debt deiling not being raised...
Let’s see, what the consequences are:
* The law will require the U.S. to continue payments for entitlement programs such as Social Security and Medicaid, while at the same time denying the government the ability to borrow in order to pay for them. Even with the most extensive cuts imaginable to domestic discretionary spending, the government would have to prioritize spending and likely halt many cherished programs.
* Higher Interest Rates. Already, the bond market has seen yields plummet on the shortest term debt, such as one-month Treasury bills, as the risk of default increases. Sell-offs of U.S. Treasury bonds will likely see rates become volatile across the board, according to economists. That could mean higher mortgage rates and borrowing costs for everyone, adding to inflation and placing further drag on an economy now in slowdown. And even if the default is only temporary, it could mean higher borrowing costs for the government, further worsening the nation’s fiscal situation.
* As interest rates are skyrocketing and debt holders are unloading their bonds, it could create a market panic similar to the stock market crash of 2008 – but possibly worse. No one knows for sure what would happen – the U.S. government has never gone into default – and the unpredictability would fuel the market unrest.
* If a large fund has to halt redemptions, as happened in that instance, it would worsen the panic and possibly require the government to step in to stabilize the markets. One complication: There has already been a massive switch into money markets from bank deposits following the failure of Silicon Valley Bank in mid-March.
* Even if Congress eventually resolves the fiscal impasse, a default could lead credit rating agencies to permanently downgrade U.S. debt, and the impasse could have long-standing effects on America’s economic standing in the world, as well as the dollar’s status as the world’s reserve currency. The dollar has come under pressure recently, largely as a result of the Federal Reserve’s interest rate hikes and geopolitical realignments stemming from Russia’s invasion of Ukraine. Foreigners are major holders of U.S. debt and they could choose to sell, putting further pressure on the bond market.
OK. Interest rates would go up.
Hyperinflation? The price of goods and services?
Availability of goods and services? Price of gas and home heating oil?
The value of the dollar?
RE: the value of the dollar
As I said, a default could lead credit rating agencies to permanently downgrade U.S. debt, and the impasse could have long-standing effects on America’s economic standing in the world, as well as the dollar’s status as the world’s reserve currency.
Well, then, I hope McCarthy has the backbone to say fine, you close the Government down if you want.
And short of the screaming news reports, no one will notice, at least for a few weeks. Most people can get along just fine without the federal government operating. Sadly, government workers get paid for that time off.
And to say to every camera, “We tried for months to get Biden to negotiate, and now, when backed into a corner at the last minute, he wants to have a conversation?!”
The Republican controlled House already passed a bill that raises the debt limit. All they have to do is show video clips of the main stream media reporting that. I don’t agree that the Democrats will escape blame. Biden miscalculated this.
Here we go again...Mom and Dad (divorced) fighting over the estate finances while Chad and Karen pretend not to notice...
Nauseating at this point....
>> As I said, a default could lead credit rating agencies to permanently downgrade U.S. debt, and the impasse could have long-standing effects on America’s economic standing in the world, as well as the dollar’s status as the world’s reserve currency.
Harsh, but maybe that’s just the wake-up call that fat, lazy, dumb, ignorant and happy America requires.
SHUT OFF THE MONEY TAP. It’s all phony “money” anyhow.
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