debt ceiling government shut down

[VitaMan]

In addition to all the maneuvering on the infrastructure bill, Congress needs to pass a bill this week to avoid a government shut down.


The Republicans have completely passed the ball to the Democrats to pass something, since they have majorities in both houses of Congress. A very tense atmosphere.



Luckily no name calling or insults or trolling like there is on eccie discussions.

[Tiny]

McConnell and the Republicans would be happy to pass a bill that would extend funding so there's not a shut down in coming weeks. They are not willing however to pass legislation proposed by the Democrats to raise the debt ceiling. This is because Democrats are passing bills that will cost trillions, bills that Republicans believe are bad for the country.

As I understand it, the Democrats' legislation would increase the debt ceiling not just enough to accommodate bills passed when Trump was president, but also enough to accommodate part of their 1.9 trillion COVID relief package, 1.1 trillion infrastructure bill, and 3.5 trillion reconciliation bill.

Please note that Pelosi and a Democrat-controlled house initiated spending bills during the last two years of the Trump administration. It wasn't just Trump and the Republicans that ran up the national debt with COVID relief.

The Democrats can increase the debt ceiling in their reconciliation bill without Republican support. They don't need the Republicans.

I'm with McConnell on this one. Unless the Democrats will negotiate a lower increase in the debt ceiling.

[Unique_Carpenter]

Just a thought.
They should lower the debt ceiling by a trillion a year to pay off the mortgage on our kids lives.
We are not the worlds police force.
We are not the worlds mom and dad.
We are not......

[VitaMan]

There is no one else

[Jacuzzme]

Originally Posted by VitaMan

There is no one else

Tough shit. Other countries can take care of themselves, or not.

I agree with UC, let the government live within its means like everyone else has to.

[Yssup Rider]

Originally Posted by Jacuzzme

Tough shit. Other countries can take care of themselves, or not.

I agree with UC, let the government live within its means like everyone else has to.

Tough shit?

Hope you don't hear that when you go to the doctor's office.

[winn dixie]

Originally Posted by Yssup Rider

Tough shit?

Hope you don't hear that when you go to the doctor's office.

That would be bad!

[VitaMan]

Originally Posted by Jacuzzme

Tough shit. Other countries can take care of themselves, or not.

I agree with UC, let the government live within its means like everyone else has to.

That is the isolationist ideology that had a strong following prior to WW2, and kept the United States out of the war for so long. America first is what I think their slogan was. Maybe we should have stayed out of WW2.

[Salty Again]

Originally Posted by VitaMan

That is the isolationist ideology that had a strong following prior to WW2, and kept the United States out of the war for so long. America first is what I think their slogan was. Maybe we should have stayed out of WW2.

Hee Hee! I do love that new saying "America First".
With Biden on its been "America LAST".
Thanks, mate - for making the point.

### Salty

[eccieuser9500]

Duplicate

[eccieuser9500]

Originally Posted by Tiny

As I understand it, the Democrats' legislation would increase the debt ceiling not just enough to accommodate bills passed when Trump was president, but also enough to accommodate part of their 1.9 trillion COVID relief package, 1.1 trillion infrastructure bill, and 3.5 trillion reconciliation bill.

Pretty soon, we're talking real money.

https://www.desmoinesregister.com/st...rs/5885974001/

Every few years it seems that another argument erupts over raising the national debt ceiling. So, let’s explore this oft-misunderstood macroeconomic metric. According to the Treasury Department, the "Debt Limit" (or ceiling) “is the total amount of money that the United States government is authorized to borrow to meet its existing legal obligations, including Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds, and other payments.”


These “existing legal obligations” were incurred during past administrations of both parties. They were duly enacted by Congress and signed into law by the president at the time. But authorizing an increase in the debt ceiling does not give a green light to whichever political party is in charge to spend taxpayers’ money on whatever their new pet projects happen to be.


The partisan rhetoric claiming that increasing the debt limit will give the other party a “blank check” to keep on spending on their particular favorite policies is not only not true, it is dangerous talk. The alternative to increasing or suspending the debt limit would be disastrous for the nation. If the federal government defaults on paying its bills, especially its interest payments, the result on the U.S. economy would be catastrophic. According to Moody’s Analytics, default on the federal debt would wipe out some 6 million American jobs, cut stock prices by a third, and reduce household wealth by $15 trillion. That is what a catastrophe looks like.


Now, if you think I am crying wolf, think back to when the Republicans played chicken with the debt ceiling during Barack Obama’s administration. You may recall that, even though the Republicans came around and approved the increase in the debt ceiling at the last minute, the consequences of their folly were rather expensive for us all. For the first time in history, Standard and Poor’s reduced the credit rating of the U.S. government from its highest rating of AAA to AA+ because, according to S&P, the "effectiveness, stability, and predictability" of American policymaking and political institutions had weakened at a time of ongoing challenges.


Today, we're hearing the same types of rhetoric. For example, in a recent email, Rep. Ashley Hinson, who represents northeast Iowa, proudly proclaims, "America's credit card is maxed out and suspending the debt limit until December 2022 is essentially ignoring the overdue balance in our already depleted bank account for over a year. At the same time, Democrats are trying to find every single nickel and dime under the couch cushions to spend on their radical agenda, and then they want to come after taxpayers for even more. I'm not going to write them a blank check to keep spending on socialist policies."


Note how Hinson distorts the truth about the debt limit. It is not true that suspending the debt limit will give Democrats “a blank check to keep spending on socialist policies.” The truth is that suspending the debt limit must be done not only to pay for the Trump tax cuts but also to make Social Security payments, not only to pay the salaries of all government employees including the military but also to pay all of the obligations already incurred by the federal government.


Raising the debt ceiling has almost never been a partisan issue, like the Republicans have made it during the past two Democratic administrations. It has been raised or suspended over 100 times with barely a peep since being established in 1917.


So, what happens now? As of this writing, Democrats added increasing the debt ceiling to the Continuing Resolution Bill, which would effectively kick the issue down the road until December 2022, after the midterm elections. This bill, which is what will keep government running until December 2022, has already been passed by the House. But, although this bill also contains emergency spending provisions for things such as evacuating Americans from Afghanistan and relief to victims of Hurricane Ida, Sen. Mitch McConnell has stated that Senate Republicans will not support it, and Republican votes will be needed to pass it in its current form. McConnell has suggested that the Democrats include the debt ceiling provisions in a budget reconciliation bill instead, which they can pass without any Republican votes.


So, once again the Republicans are playing chicken with the debt ceiling, a very dangerous game. The debt ceiling must be increased so that the bills can be paid.


Hans Isakson is an economist retired from the University of Northern Iowa. He has published over 45 articles and has taught at the University of Texas at Arlington, Washington State University, the University of Georgia, and the University of Wisconsin-Milwaukee. He lives in Cedar Falls.

[SecretE]

The only reason why the US Dollar has remained the main world reserve currency was because the US Government was only slightly less reckless spending money it didn't have (and printing fiat currency to cover expenses) than other nations. No recent POTUS other than Trump was willing to say "no" (remember the last federal government "shutdown")...and even he caved after enormous pressure.

[rexdutchman]

disaster

[dəˈzastər]



NOUN

disaster (noun) · disasters (plural noun)

1. a sudden event, such as an accident or a natural catastrophe, that causes great damage or loss of life.
   "159 people died in the disaster" · [more]New content will be added above the current area of focus upon selection
   
   "disaster struck within minutes of takeoff"
   
   synonyms:
   catastrophe · calamity · cataclysm · tragedy · act of God · holocaust · accident · mishap · misadventure · mischance · setback · reversal · [more]New content will be added above the current area of focus upon selection
   
   reverse of fortune · contretemps · stroke of ill luck · problem · difficulty · heavy blow · shock · buffet · adversity · trouble · misfortune · ruin · ruination · tribulation · woe · distress · casualty · bale · mishanter
   
   
   
   antonyms:
   blessing
   
   
   
   
   • denoting a genre of films that use natural or accidental catastrophe as the mainspring of plot and setting.
     "a disaster movie"
   • an event or fact that has unfortunate consequences.
     "a string of personal disasters" · [more]New content will be added above the current area of focus upon selection
     
     "reduced legal aid could spell financial disaster"
     
   • informal
     
     a person, act, or thing that is a failure.

[Jacuzzme]

Originally Posted by VitaMan

That is the isolationist ideology that had a strong following prior to WW2, and kept the United States out of the war for so long. America first is what I think their slogan was. Maybe we should have stayed out of WW2.

Yeah because staying out of wars is a bad thing. SMFH

In reality that’s wouldn’t have been a horrible idea, and exactly what we had planned, until Pearl Harbor. The allies would’ve put down Germany without the US, as long as they still had American manufacturing backing them up. Japan would’ve been harder, purely for logistical reasons. That part of the world would likely look different than it does today.

[rexdutchman]

^^ Because they have NEVER had to live in reality
Just look to what Jen,Jen said about tax's and prices , its either there insane or the dumbest people on the planet .
Anyone with 2 brain cells understands that if amazon's tax's go up 5 % the cost of well EVERYTHING is going up at least 5 %

So we are going to Pay one way or the other