Debt Ceiling

[UNLV2001]

Since 1960, Congress has raised, extended or revised the debt limit 78 separate times - 49 times under Republican presidents, 29 times under Democratic administrations.

 

When was the last time the U.S. was debt free?

January 1835 was the first and only time all of the government’s interest-bearing debt was paid off, according to the Treasury Department.

As a result, the government had a huge surplus of money, at $17.9 million, far greater than the actual government expenditures for the year. Congress divided the surpluses up among the states, which were bogged down with debt.

 

Understanding the Debt Ceiling

Congress had free rein over the country’s finances before the debt ceiling was created. In 1917, the debt ceiling was created during World War I to make the federal government fiscally responsible.

There has been controversy over whether the debt ceiling is constitutional. According to the 14th Amendment of the Constitution, “The validity of the public debt of the United States, authorized by law...shall not be questioned.”

 

[UNLV2001]

 

[bornontheblue]

I don't think they are going to get a deal done in time. A lot of Democrats are pissed that Biden is even talking with Republicans, and a lot of GOP will only hold out for draconian cuts that the democrats would never agree to under any circumstances. After we run out of cash it will be dueling press conferences of the blame game. 

We won't default on debt, but Social Security. Medicare payments are probably going to get delayed. 

 

 

[UNLV2001]

Democrats made the mistake to not pass the debt ceiling bill during the lame duck session in January when they had the majority & the votes...........but in typical timid & "reach across the aisle" fashion, thinking that republicans might be reasonable the democrats allowed the GOP clown show to do the same thing they tried under Obama 

The GOP goal is to crash the economy & hang it on Biden & dems 

[Akkula]

On 5/23/2023 at 4:03 PM, UNLV2001 said:

Democrats made the mistake to not pass the debt ceiling bill during the lame duck session in January when they had the majority & the votes...........but in typical timid & "reach across the aisle" fashion, thinking that republicans might be reasonable the democrats allowed the GOP clown show to do the same thing they tried under Obama 

The GOP goal is to crash the economy & hang it on Biden & dems 

That may be true but it is likely that Sinema would have held it hostage and not passed it in a show of "maverickiness."  She is horrible.

Biden is going to have no choice but to use the 14th amendment but he wants to put every effort forward to come to a reasonable accommodation but he is dealing with people who are not reasonable and want to shoot their hostage unless they get 100% of what they want.  

The constitution never intended to allow one party to drive us into default for spending that had already been authorized two houses and the president nor did it ever contemplate a filibuster where a minority could block everything.  These things are relics from an age where old white men in both parties were the only ones making decisions and it was easy for them to make back room deals on policies that mostly benefited other people like them.  We now need true democratic governance and the filibuster and debt ceiling do not fit into democratic governance.

[Billings]

On 5/23/2023 at 2:45 PM, bornontheblue said:

I don't think they are going to get a deal done in time. A lot of Democrats are pissed that Biden is even talking with Republicans, and a lot of GOP will only hold out for draconian cuts that the democrats would never agree to under any circumstances. After we run out of cash it will be dueling press conferences of the blame game. 

We won't default on debt, but Social Security. Medicare payments are probably going to get delayed. 

 

 

We will just let some poor people default and struggle while we play politics......

[grandjean87]

McCarthy just had a presser.  It's all the Ds fault.  Clean hands.

[NVGiant]

On 5/24/2023 at 9:10 AM, grandjean87 said:

McCarthy just had a presser.  It's all the Ds fault.  Clean hands.

McCarthy is so +++++ed. Lol. 

[Bob]

Democrats have no plan other than  "MORE". Those people are idiots.

[Akkula]

On 5/24/2023 at 11:10 AM, Bob said:

Democrats have no plan other than  "MORE". Those people are idiots.

I am 100% okay with getting a more balanced budget.  The problem I have is you faux populists right wingers want the budget to be balanced off the working man and the poor while giving the billionaires a free pass while simultaneously crying about all the power the "elites" have.  Stupid.  

[Akkula]

The MAGAs say they will not vote for ANYthing unless it is their bill they previously passed.  If that is the case, McCarthy will need a sizable number of Democrats to support the bill in order to get it to pass the house.  But...if McCarthy makes a deal with Democrats and gets their votes, he will be thrown out of the speakership by furious MAGAs who want us to default.  McCarthy, like most Republicans, like personal and party power over country so we know he will not have the courage to deny the MAGAs and sacrifice his speakership.

We are heading for default.

[bornontheblue]

On 5/24/2023 at 12:23 PM, Akkula said:

The MAGAs say they will not vote for ANYthing unless it is their bill they previously passed.  If that is the case, McCarthy will need a sizable number of Democrats to support the bill in order to get it to pass the house.  But...if McCarthy makes a deal with Democrats and gets their votes, he will be thrown out of the speakership by furious MAGAs who want us to default.  McCarthy, like most Republicans, like personal and party power over country so we know he will not have the courage to deny the MAGAs and sacrifice his speakership.

We are heading for default.

I highly doubt they will get a deal done. 

We won't default on Gov Debt, but Social Security and Medicare are going to get delayed.

 

[toonkee]

On 5/24/2023 at 3:05 PM, bornontheblue said:

I highly doubt they will get a deal done. 

We won't default on Gov Debt, but Social Security and Medicare are going to get delayed.

 

Don't old people vote R?

 

[Akkula]

On 5/24/2023 at 4:05 PM, bornontheblue said:

I highly doubt they will get a deal done. 

We won't default on Gov Debt, but Social Security and Medicare are going to get delayed.

 

Upon a default the congress basically is giving the executive the authority to pick and choose which bills get paid.  Biden should make sure not hand out any money to districts and states whose representatives are not in support of a clean debt bill.  Democrats spend too much time trying to shield these idiots from the consequences of their voting decisions.  These idiot voters in those districts need to have some chickens come home to roost for them and everyone who lives there needs to know how they are voting on default.

[UNLV2001]

On 5/24/2023 at 3:16 PM, toonkee said:

Don't old people vote R?

 

Hopefully when the R's screw them along with military retirees & personnel .......their future support of R's might not be guaranteed -- But that might depend on how strong their gun & abortion fetishes are, think some would starve before giving up the ship on those two issues 

[Spaztecs]

On 5/24/2023 at 11:26 AM, Akkula said:

I am 100% okay with getting a more balanced budget.  The problem I have is you faux populists right wingers want the budget to be balanced off the working man and the poor while giving the billionaires a free pass while simultaneously crying about all the power the "elites" have.  Stupid.  

Yep, they also want to extend the Trump Tax cuts which  grew the deficit.

Gravy for the rich, phuck you to working class retirees.

[sactowndog]

On 5/24/2023 at 5:35 AM, Akkula said:

That may be true but it is likely that Sinema would have held it hostage and not passed it in a show of "maverickiness."  She is horrible.

Biden is going to have no choice but to use the 14th amendment but he wants to put every effort forward to come to a reasonable accommodation but he is dealing with people who are not reasonable and want to shoot their hostage unless they get 100% of what they want.  

The constitution never intended to allow one party to drive us into default for spending that had already been authorized two houses and the president nor did it ever contemplate a filibuster where a minority could block everything.  These things are relics from an age where old white men in both parties were the only ones making decisions and it was easy for them to make back room deals on policies that mostly benefited other people like them.  We now need true democratic governance and the filibuster and debt ceiling do not fit into democratic governance.

I don’t think this has anything to do with the executive branch.   The critical question here is can one Congress simply choose to ignore and not pay select spending authorized by another Congress.    Biden saying Congress is bound by actions of previous Congresses should be clearly enunciated.   
 

If so, then investors should think hard investing in any US bond that extends past the term of the current Congress.   

[SJSUMFA2013]

On 5/24/2023 at 10:10 AM, Bob said:

Democrats have no plan other than  "MORE". Those people are idiots.

No matter how much you parrot his opinions, your father will never love you.

[sactowndog]

So should be an interesting weekend.  What are the odds a hardline R is unhappy with McCarthy’s deal and makes a motion to vacate the Speaker? 

[UNLV2001]

Remember when the republicans were going to work on the economy -- Now it's just endless culture war investigations over their perceived fantasies