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Posts tagged ‘Debt Ceiling’

Treasury Department Invokes ‘Extraordinary Measures’ To Avoid Busting US Debt Ceiling


Reported by VARUN HUKERI, GENERAL ASSIGNMENT & ANALYSIS REPORTER | August 02, 2021

Read more at https://dailycaller.com/2021/08/02/treasury-department-janet-yellen-debt-ceiling-congress/

Senate Appropriations Considers Treasury Department's Budget Request
(Shawn Thew-Pool/Getty Images)

The Treasury Department will conduct emergency cash-conservation measures starting Monday to avoid busting the U.S. debt ceiling after a two-year deal to suspend the federal borrowing limit lapsed at midnight Sunday.

Treasury Secretary Janet Yellen warned House Speaker Nancy Pelosi in a letter July 23 that the Treasury would invoke the “extraordinary measures” if Congress didn’t raise the debt ceiling. Yellen noted that trillions in federal spending and COVID-19 response laws made it difficult to estimate how long the Treasury would sustain its measures.

“The period of time that extraordinary measures may last is subject to considerable uncertainty due to a variety of factors, including the challenges of forecasting the payments and receipts of the U.S. government months into the future, exacerbated by the heightened uncertainty in payments and receipts related to the economic impact of the pandemic,” she wrote.

The debt ceiling prevents the Treasury from issuing new bonds once a certain limit is reached. Congress had suspended the debt limit for two years as part of a budget deal in August 2019, when the ceiling reached $22 trillion, according to Bloomberg. A new debt ceiling would include additional borrowing since, reaching $28.5 trillion according to the Congressional Budget Office. 

US President Joe Biden sits alongside US Treasury Secretary Janet Yellen (R) as he holds a meeting with business leaders about a Covid relief bill in the Oval Office of the White House in Washington, DC, February 9, 2021. (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images)

President Joe Biden sits alongside Treasury Secretary Janet Yellen as he holds a meeting in the Oval Office of the White House February 9, 2021. (Saul Loeb/AFP via Getty Images)

Yellen’s cash-conservation measures would allow the Treasury to redeem certain investments in federal pension programs and halt new investments in order to generate revenue, CNBC reported. But payments on entitlement programs and interest on federal debt, among other things, would stop unless the federal government floats new Treasury bonds.

Economists said the measures allow the Treasury to pay off federal government obligations without accruing new debt for two to three months, CNBC reported. But Congress must raise or suspend the debt ceiling or risk the U.S. defaulting on its debt.

The federal government has never defaulted, as such a move would have far-reaching consequences for the economy. Although economists said they’re optimistic Congress will reach a deal on the debt ceiling, the prospect appears less certain in Washington.

A bipartisan group of lawmakers in the Senate are seeking to pass a trillion-dollar infrastructure bill while Democrats are considering a separate $3.5 trillion reconciliation bill later this year.

An aide to House Democratic leadership told CNBC that discussions about the ceiling are ongoing and congressional leaders do not want to risk the “full faith and credit” of the U.S. government.

President Joe Biden’s administration, on the other hand, may not get involved in discussions about the debt ceiling. A White House official told CNBC that “it is Congress’s responsibility to raise or suspend the debt limit in order to pay for the spending it has already authorized over the years.”

Additional Politically INCORRECT Cartoons for Thursday September 21, 2017


More Politically INCORRECT Cartoons for Wednesday September 6, 2017


Ted Cruz: ‘Hell Will Freeze Over’ Before Establishment GOP Listens To American people


http://www.breitbart.com/Big-Government/2014/02/13/Ted-Cruz-Hell-will-freeze-over-before-establishment-GOP-listens-to-American-people

by Matthew Boyle 13 Feb 2014

 Sen. Ted Cruz (R-TX) told conservative radio host Mark Levin on Thursday evening that establishment GOP politicians will “never” listen to the American people.

“If we wait on the entrenched politicians in Washington, hell will freeze over before that happens,” Cruz answered when Levin asked whether Republicans will ever listen. “This is nothing new. The answers come from America, from millions of people standing up and holding elected officials accountable.”

Cruz, who coined the Twitter hash tag #MakeDCListen during the government shutdown episode, has often returned to a theme of forcing Washington D.C. insiders to listen to the public.

He noted that in the prelude to the shutdown, many Republicans preferred to push for spending cuts with the debt ceiling as leverage.

“A few months ago, when we were fighting trying to stop the disaster that is Obamacare, where a lot of Washington gray beards said, ‘we are going to fight on the debt ceiling. That’s where the fight will be,’” Cruz said. “It’s like they think the American people are a bunch of rubes, we don’t remember what they say.”

Wednesday, Cruz forced a procedural roll call requiring a 60-vote majority on the “clean” debt ceiling bill, despite Minority Leader Mitch McConnell’s forceful urging he allow the legislation to go through with only a bare-majority vote. Cruz said Republicans should have united against the cloture motion, preventing the debt ceiling from being raised.

“If 41 Republicans had stood together and just voted no, the clean debt ceiling, the blank check for President Obama and Harry Reid and Nancy Pelosi want would have been denied,” Cruz said. “And for all of them who say I am just a crazy rebel, the last 55 times the debt ceiling has been increased, Congress has attached meaningful conditions to it 28 of those times. It’s the only leverage point that has ever been effective.”

Cruz said earlier in the interview that many Republicans in the U.S. Congress wanted to increase the debt ceiling. “Make no mistake about it,” Cruz said. “This was their desired outcome. An awful lot of Republicans wanted exactly what Barack Obama, Nancy Pelosi, and Harry Reid wanted, which is to raise the debt ceiling. But, they wanted to be able to tell what they view as their foolish gullible constituents that they didn’t do it, and they’re mad because by my refusing to consent to [a bare-majority vote] they had to come out in the open and admit to that.”

Cruz’s move to force the 60-vote procedural tally forced a dramatic, hour-long vote in which McConnell and GOP Whip John Cornyn scrambled to find enough Republicans to join Democrats and invoke cloture. During the vote, the clerk abstained from a decades-long practice of announcing each vote into a microphone as it was cast, preventing the public from knowing who had already voted and thus, who was switching their votes. McConnell and Cornyn ultimately joined in voting for cloture, after which six of their GOP colleagues switched to join them, providing additional political cover.

Hear the conversation Mark Levine had with Senator Cruz here;

Levine

My Bank Laughed When I ask It to Raise My Debt Ceiling


Image converted using ifftoanyIf I went to my bank and asked for a loan without the equity to back it up and the ability to pay it back, I would not get the loan. If I told them that I could print some money to help with the pay down of the loan, they would most likely have called the police on me.

When you’re a politician, you’re almost legally untouchable. When you get elected to office at the federal level, there’s almost nothing you can’t do if you can get enough people to agree with you. It’s a matter of taking a vote. It’s that simple.

We’re seeing President Obama sidestepping the Constitution by threatening to issue 19 executive orders that would further restrict law-abiding Americans to exercise their Second Amendment rights.

If you don’t like what the Constitution that you took an oath to uphold, ignore it and legislate like a dictator. If you don’t have enough money; just print some more. If you want to take control of the healthcare of every person in America, pass a law based on 2700 pages that few congressmen or the president ever read. It doesn’t matter what it says since bureaucrats will eventually write the rules. It’s all for our good, don’t you know.

If you want to make sure every person in America gets to participate in the American dream, force banks to loan money to people who don’t have the means to pay it back. No problem. Create agencies for people who can’t repay them. When these government agencies go belly up, print more money.

This video by Tim Hawkins says it better than anyone else. You’ll laugh and cry at the same time: http://www.youtube.com/watch?feature=player_embedded&v=LO2eh6f5Go0

This can all be done because there are few boundaries when it comes to government.

There’s a particular scene in the 1946 film The Best Years of Our Lives[1] that stars Frederick March, Myrna Loy, Dana Andrews, and Teresa Wright that demonstrates the problem of feel-good economics.

March’s character, Al Stephenson, is a loan officer at a bank. Stephenson gets his job back at the back. He greets a customer who turns out be a returning solider like him. The would-be farmer wants a loan:

“[March’s character] asked him what kind of collateral he can provide. The young veteran looks back with a blank stare; he has no collateral. Al explains the bank needs to have some kind of security, a guarantee of sorts so they know they can get their money back. Dejected, the vet still could not understand why he was being refused. Al is painfully uncomfortable telling the young vet all this.

The bank officials are made to look like money grubbers for not loaning money to this genuinely sincere ex-G.I. The bank was right. Al, as much as he believed in the would-be farmer, was wrong. If he really believed in the man’s abilities and the soundness of the business venture, then he should have loaned him some of his own money. It was easy for Al to loan money that wasn’t his. There was no risk to him.

Congress and the President don’t care about debts and deficit spending. It’s not their debts and deficits. All they have to do is raise the debt ceiling. Some in the liberal brain trust are saying that there is no need for a debt ceiling. The sky’s the limit.

Try that at your bank and let me know how far you get. I bet you either get laughed out of the building or men with white coats are called to drag you out.
Notes:

  1. The film won seven Academy Awards including Best Picture, Best Director (William Wyler), Best Actor (Fredric March), Best Supporting Actor (Harold Russell), Best Film Editing (Daniel Mandell), Best Adapted Screenplay (Robert Sherwood), and Best Original Score (Hugo Friedhofer). []

More Evidence Of President Obama Wanting to be “Dictator” Obama


Obama: Give Me Debt Ceiling Power Or I’ll Veto My Own Tax Proposal

Barack-Obama-as-Buzz-Lightyear-86467In case there is still anyone out there that continues to believe that the 2008 campaign lines that Barack Obama gave about changing the way Washington works, stopping “politics as usual,” and providing more transparency in government are true, then get a load of this. On Wednesday, Obama demonstrated just how partisan and how much of a power grabber he is. He indicated that if he were not given unlimited powers to raise the debt ceiling, apart from Congressional approval, that he might just veto his own tax hike proposal should it come to his desk.

As Obama addressed corporate CEOs at the Business Roundtable, he told them that business leaders “should not accept going through” another debt-ceiling crisis like the one that occurred in 2011, which caused stocks to fall and ended with the first U.S. credit rating downgrade.

He said that the Republicans using the debt ceiling as leverage, in order to get more spending cuts, is not only a “bad strategy for America,” but he was adamant that it was a game he would not play.

The Hill reports,

The president told the CEOs that a fight over the debt ceiling would cause more uncertainty for business. “We can’t go there again,” Obama said.

He also quoted Business Roundtable President John Engler, the former Republican governor of Michigan, who said the debt ceiling was “not a good weapon for anything except destroying our own credit rating.”

Obama’s comments drew a sharp rebuke from Republicans, who argue Congress’s role in raising the debt ceiling serves as a key check on excessive government spending. GOP leaders noted proudly they were able to force some $2 trillion in cuts during the debt-ceiling showdown last year.

“The president wants to have the ability to raise the debt ceiling whenever he wants, for as much as he wants, with no responsibility or spending cuts attached,” said spokesman for Senate Minority Leader Mitch McConnell (R-KY) Don Stewart. “This is an idea opposed by Democrats and Republicans alike; it’s a power grab that has no support here.”

We already know that Obama and the Democrats are not willing to compromise on anything. They even rejected House Speaker John Boehner’s proposal on Tuesday, which was blasted by conservatives. Obama is going to play hardball and the Republicans had better wake up to that. You’ve been dealing with the man for four years now.

Consequently, Obama’s own proposal could not pass either the House or the Senate, but apparently he wants to be the “Buzz Lightyear” of debt and demand the power, given to Congress in Article 1, Section 8 of the U.S. Constitution, and go from $16 trillion to “infinity and beyond!” Congress must keep him in check or it will most certainly spell the end for the U.S. economy.

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