McCarthy Plans To Cut Debt By Gutting Funds For Veterans

[Tiberius]

Trump has sway, only some that wants to distort the truth would say so 

[B-Man]

7 hours ago, Tiberius said:

 

 

Nice response. 

 

Now try a complete sentence  with some logic in it.

 

(only some that wants to)

😉

[B-Man]

 

WHAT, EXACTLY, IS A “DEFAULT?”

Negotiations over the debt limit are still ongoing, and we are starting to hear a lot about the imminent prospect of a “default.” The term gets thrown around a lot in the press, usually attached to words like “unprecedented” and “catastrophic.” But the term creates confusion wherever it lands. Some of this reflects garden-variety misunderstanding. But I worry that some of it reflects a kind of intentional slipperiness by motivated actors who want to frame debt-limit issues a certain way.

There are at least two senses in which the term “default” gets used. The first, and probably the more intuitive usage, refers to a failure to make payments on the public debt securities of the United States, like bonds and Treasury bills. On this point I am not Pollyanna: If that kind of default happens it is likely to be a really bad thing. But as I’ll explain more below, I don’t think that outcome is particularly likely. (Though it’s not impossible.)

 

The second sense in which the word “default” gets used is something like: “Any failure by the United States to make any payment in full and on time.” I confess I find this usage of the term spectacularly unintuitive. But, putting intuitions aside for the moment, this second usage also covers a huge potential breadth of potential outcomes. What payments, exactly? And for how long? There is a big difference between a subset of federal salaries getting paid a day late (perhaps against the backdrop of a deal that has been struck but is still grinding its way through bicameralism and presentment), and large swathes of the federal budget going unfunded for many weeks as Congress and the President continue to flounder.

 

These distinctions are important. But the difference between usage one and usage two—and the important differences of degree within usage two—are sometimes obscured.

 

Well, that confusion is not at all by accident, of course. And honestly, given the political system’s utter inability to reduce spending in a rational way, “large swathes of the federal budget going unfunded” may be the best we can do:

 

Authorized and even appropriated spending isn’t “the public debt.” For constitutional purposes, promised benefits from Social Security, Medicare and other entitlements aren’t even property, as the Supreme Court held in Flemming v. Nestor (1960), and Congress has as much authority to reduce them as to increase them.

 

When lawmakers were drafting the 14th Amendment, they revised Section 4’s language to replace the term “obligations” with “debts.” If the Treasury ran out of money, the constitutional obligation to pay bondholders would trump all statutory obligations to spend. . . .

 

Ms. Yellen also said that “Treasury’s systems have all been built to pay all of our bills when they’re due and on time, and not to prioritize one form of spending over another.” But as the Journal has reported, department officials conceded in 2011 that the government’s fiscal machinery certainly could prioritize payments to bondholders, and the Federal Reserve prepared for such a contingency.

 

There’s no question enough money would be available: The government collects roughly $450 billion a month in tax revenue, more than enough to cover the $55 billion or so in monthly debt service.

 

Reducing spending in a rational way would be better, of course, but that’s not on the table.

 

https://reason.com/volokh/2023/05/25/what-exactly-is-a-default/

 

 

 

 

 

 

 

 

 

 

 

                                    

[B-Man]

 

 

PRIORITIES: Democrats to Biden: Get ‘off the bench’ in the debt limit fight.

 

“They need to use the power of the presidency. I don’t buy this argument that [public silence] helps the negotiation,” said Congressional Black Caucus Chair Steven Horsford (D-Nev.). “I need the American people to know that Democrats are here fighting, working, prepared to reach an agreement to avoid a default and only the White House, the president, can explain that in this moment.”

 

Biden is set to be even further out of sight this weekend when he leaves Friday for Camp David, and then travels to Delaware. Told Biden was planning to leave Washington for the weekend, one House Democrat expressed disbelief.

 

“Please tell me that’s not true,” said the lawmaker, who was granted anonymity for fear of angering the White House. “You’re going to see a caucus that’s so pissed if he’s stupid enough to do that.”

 

The GOP has already passed a debt limit increase. Biden has another weekend off.

 

https://www.politico.com/news/2023/05/25/democrats-to-biden-get-off-the-bench-in-the-debt-limit-fight-00098861

 

 

 

[BillStime]

trash “party”
 

 

[B-Man]

 

 

Members of House Freedom Caucus Warn McCarthy That 3 Urgent 'Actions' Must Be in Debt Ceiling Deal

By Becca Lower

 

https://redstate.com/beccalower/2023/05/25/members-of-house-freedom-caucus-warn-mccarthy-that-3-urgent-actions-must-be-in-debt-ceiling-deal-n751644

 

 

 

.

[B-Man]

 

Sad. 
 

Biden Has No Idea Who He Is Calling for at Event, as He Ditches Debt Deadline for Vacation

 

 

Joe Biden doesn’t seem to give a darn about debt negotiations or our economic status.

 

First, he refused to even talk with Republicans for 97 days. But since he has been talking, he doesn’t want to cut anything, he just wants to keep spending us into the poor house. He’s completely in the thrall of the leftist wing of his party and they don’t want him to agree with the Republicans.

 

Unfortunately for the Democrats, Americans want cuts and they see Joe Biden as the obstacle here. The Republicans already passed a bill, it’s Biden who isn’t getting it done and Americans see it. 

 

https://redstate.com/nick-arama/2023/05/25/biden-has-no-idea-who-he-is-calling-for-at-event-as-he-ditches-debt-deadline-for-vacation-n751673

 

[Tiberius]

Sabotaging the economy for The Party 

 

Conservative lawmakers have begun mounting a campaign against the emerging deal on the debt ceiling between President Biden and House Speaker Kevin McCarthy (R-Calif.), as objections from the right threaten to undermine an agreement even before its contents are publicly released.

On Thursday and Friday, in response to reports about the details of the agreement, leading conservative lawmakers and budget experts raised strong objections, arguing McCarthy had failed to extract sufficient concessions from the Biden administration in exchange for raising the debt ceiling. McCarthy pushed back in remarks to reporters on Friday, saying the criticisms were being leveled by people unaware of the substance of the deal.

 

https://www.washingtonpost.com/business/2023/05/26/debt-ceiling-deal/

[Westside]

On 5/24/2023 at 1:24 PM, B-Man said:

 

actually that was more lying, by Tibsy

 

 

 

.

You can tell when tibs is lying, his mouth moves. Or in this case, he posts anything.

[Tiberius]

8 minutes ago, Westside said:

You can tell when tibs is lying, his mouth moves. Or in this case, he posts anything.

Says the clown who repeats and defends every lie Trump ever told. 

[B-Man]

 

Funny thing is, you can read the same story about the Republicans

 

 

House Democrats Extremely Frustrated, Don't Like What They're Hearing on Debt Ceiling Negotiations

By Joe Cunningham 

 

https://redstate.com/joesquire/2023/05/26/house-democrats-extremely-frustrated-dont-like-what-theyre-hearing-on-debt-ceiling-negotiations-n751838
 

 

 

[Westside]

9 minutes ago, Tiberius said:

Says the clown who repeats and defends every lie Trump ever told. 

Trash poster ☝️

[B-Man]

 

WHY MCCARTHY IS WINNING THE DEBT CEILING SHOWDOWN

 

As of this writing Friday morning, the media reports that there is no debt ceiling deal yet, but that the two sides—meaning Biden and Kevin McCarthy—are close.

 

Strange how Sen. Majority Leader Chuck Schumer seems to be totally sidelined. Does the Senate not have any leverage at all? Apparently not.

 

Biden’s regular weekend trip to his beach house in Delaware for his vitamin injections and blood transfusions or long sleeps in his vampire casket or whatever his handlers are doing to prop him up has annoyed many Hill Democrats who think he needs to stick around and finish a deal.

 

https://www.powerlineblog.com/archives/2023/05/the-daily-chart-why-mccarthy-is-winning-the-debt-ceiling-showdown.php

 

 

 

 

 

 

 

 

Edited May 26, 2023 by B-Man

[B-Man]

3 minutes ago, SUNY_amherst said:

mccarthy lets em go on vacation early instead of working through this debt ceiling deal

 

 

Why do you give half true sentence, without a link ?

 

 

Forget the question, I have read your posts. I know why.

 

 

Those working on the negotiations are still there.

 

 

 

 

 

CNN — debt limit deal is still not yet close at hand for House Republicans and the White House as lawmakers leave the nation’s capital and the risk of a first-ever default grows.

 

With no bill to vote on, House lawmakers are leaving for the Memorial Day weekend, though they will be given 24 hours’ notice to return if and when a deal is reached.

 

https://www.cnn.com/2023/05/25/politics/debt-limit-talks-thursday/index.html

 

 

 

 

 

Washington Examiner: --As the deadline to raise the debt ceiling inches closer and negotiations progress in a positive direction, House members head home for Memorial Day, expecting to be called back early next week to vote on the bill.

 

House Speaker Kevin McCarthy’s (R-CA) two negotiators, Reps. Garret Graves (R-LA) and Patrick McHenry (R-NC), met among themselves late into the night on Wednesday, and neither answered questions as they left.

 

They will continue working until they have a deal and while most members go home for recess. Once a deal is in place and the 72-hour clock begins to tick, members will receive a 24-hour notice to come back to Washington, D.C., to vote on the bill. 

 

https://www.washingtonexaminer.com/news/house/deadline-to-raise-tdebt-ceiling-inches-closer-members-head-home

 

 

 

[All_Pro_Bills]

1 hour ago, B-Man said:

 

 

Why do you give half true sentence, without a link ?

 

 

Forget the question, I have read your posts. I know why.

 

 

Those working on the negotiations are still there.

 

 

 

 

 

CNN — debt limit deal is still not yet close at hand for House Republicans and the White House as lawmakers leave the nation’s capital and the risk of a first-ever default grows.

 

With no bill to vote on, House lawmakers are leaving for the Memorial Day weekend, though they will be given 24 hours’ notice to return if and when a deal is reached.

 

https://www.cnn.com/2023/05/25/politics/debt-limit-talks-thursday/index.html

 

 

 

 

 

Washington Examiner: --As the deadline to raise the debt ceiling inches closer and negotiations progress in a positive direction, House members head home for Memorial Day, expecting to be called back early next week to vote on the bill.

 

House Speaker Kevin McCarthy’s (R-CA) two negotiators, Reps. Garret Graves (R-LA) and Patrick McHenry (R-NC), met among themselves late into the night on Wednesday, and neither answered questions as they left.

 

They will continue working until they have a deal and while most members go home for recess. Once a deal is in place and the 72-hour clock begins to tick, members will receive a 24-hour notice to come back to Washington, D.C., to vote on the bill. 

 

https://www.washingtonexaminer.com/news/house/deadline-to-raise-tdebt-ceiling-inches-closer-members-head-home

 

 

 

There's absolutely no need for a default.  Most of that talk is fear mongering.  

There are options not yet discussed.

When you can't fund your expenses through cash flow you have several choices.  One is to sell assets to raise funds to pay obligations.  The US government can do this by the Treasury instructing the Federal Reserve  to sell some or all of the Treasury's 800 ton gold reserve held at Ft Knox and the NY Fed.  By my math that's about $51.2 trillion dollars (800 tons 2000 lb/ton, 16 oz/lb at around $2,000/oz).

Problem solved assuming it's all still there as the last real physical audit was in the 1950's.

Other central banks, institutions. Investors, and others would be happy to trade the Treasury bonds they hold for the metal.  And of course take physical custody.

Perhaps pay off a portion of the National debt while they're at it?

Edited May 26, 2023 by All_Pro_Bills

[B-Man]

 

 

WH, House Democrats Threaten to Blow up Debt Deal Over 'Work Requirements' Provision

 

 

Biden Administration Treasury Secretary, Janet Yellen seemed to give in to conservative Republican members’ demands on a “hard deadline” for when President Joe Biden, House Speaker Kevin McCarthy (R-CA), and congressional Democrats like Leader Hakeem Jeffries (D-NY), would need to complete a deal on the debt ceiling.

 

Yellen said the target date is now June 5.

 

It was one of three “actions” the House Freedom Caucus warned McCarthy that would need to be a part of any deal in order to garner the House Republicans’ support.

 

https://redstate.com/beccalower/2023/05/26/breaking-wh-house-democrats-threaten-to-blow-up-debt-deal-over-work-requirements-provision-n752284

[BillStime]

Fn clowns 

 

 

[BillsFanNC]

 

[Tiberius]

Deal reached? But will it pass congress? 

[JDHillFan]

13 minutes ago, Tiberius said:

Deal reached? But will it pass congress? 

Do you expect the democrat controlled senate to defy a good American president? Could be that Schumer and crew are upset that Biden negotiated after months of saying he wouldn’t. 

[Tiberius]

4 minutes ago, JDHillFan said:

Do you expect the democrat controlled senate to defy a good American president? Could be that Schumer and crew are upset that Biden negotiated after months of saying he wouldn’t. 

No, I expect the Freedom Caucus to be angry there isn't more pain being inflicted on poor people 

[Wacka]

FU Tibs. All you want to do is inflict pain.

[JDHillFan]

1 hour ago, Tiberius said:

No, I expect the Freedom Caucus to be angry there isn't more pain being inflicted on poor people 

And when you are wrong? 

[Over 29 years of fanhood]

1 hour ago, JDHillFan said:

Do you expect the democrat controlled senate to defy a good American president? Could be that Schumer and crew are upset that Biden negotiated after months of saying he wouldn’t. 

Think it needs to get through Congress again too because it’s different 

1 hour ago, Tiberius said:

No, I expect the Freedom Caucus to be angry there isn't more pain being inflicted on poor people 

More pain, as in do something for all these free hand outs. 

[JDHillFan]

8 minutes ago, Over 29 years of fanhood said:

Think it needs to get through Congress again too because it’s different 

More pain, as in do something for all these free hand outs. 

Yes and there’s a good chance Freedom Caucus members vote against. Will house dems defy Biden? Surely some will but the dems can’t risk non-passage. 

[B-Man]

 

 

 

Nice touch with the "Biden" in the headline, like he was involved.

 

 

 

Biden, McCarthy reach debt ceiling deal to avoid default

The Hill [DC], by Mike Lillis

 

Top leaders in both parties reached a long-sought deal on Saturday to avoid an unprecedented government default, announcing an agreement on a plan to lift the debt ceiling immediately and apply new caps on federal spending in the name of curbing deficits, according to sources familiar. To get there, negotiators had to iron out their differences on a small but crucial list of outstanding issues that had dogged the talks in recent days, including lower spending levels, new work requirements for social benefit programs and permitting reforms to expedite approval of energy infrastructure projects

 

https://thehill.com/homenews/house/4023783-debt-ceiling-deal-reached/amp/

[Tiberius]

21 minutes ago, Over 29 years of fanhood said:

Think it needs to get through Congress again too because it’s different 

More pain, as in do something for all these free hand outs. 

Some people need help, why does that stir your hate? 

[B-Man]

 

 

 

MCCARTHY GETS DEBT-CEILING DEAL — WITH WORK REQUIREMENTS:

 

“Biden and Chuck Schumer lost this weeks ago, and now they just caved.

 

It would not surprise me if the Democrats knew this was coming all along, and they merely waited for a holiday weekend to give them enough cover to pull the trigger.”

 

 

https://hotair.com/ed-morrissey/2023/05/27/auto-draft-89-n553964

[Over 29 years of fanhood]

2 hours ago, JDHillFan said:

Yes and there’s a good chance Freedom Caucus members vote against. Will house dems defy Biden? Surely some will but the dems can’t risk non-passage. 

Interesting point 

[Over 29 years of fanhood]

1 hour ago, Tiberius said:

Some people need help, why does that stir your hate? 

Slow down there mr dichotomy good guy bad guy,

 

I’m opposed to paying for institutionally enabling sloth. it’s a good thing to make people do SOMETHING for these handouts. 

[B-Man]

 

 

Reminder:  Mis-Named Thread.

 

 

 

Hey where's the president? Out of curiosity?

[Gene Frenkle]

McCarthy caved lol

[Pokebball]

19 minutes ago, Gene Frenkle said:

McCarthy caved lol

Agree. He should have gotten more cuts

[Joe Ferguson forever]

This was a stupid, dangerous political game but in the end a reasonable compromise was found.  Gives me some hope for a more functional government.

[sherpa]

1 hour ago, redtail hawk said:

This was a stupid, dangerous political game but in the end a reasonable compromise was found.  Gives me some hope for a more functional government.

 

I am not confident.

This "government" would never survive in the objective, corporate world, or as any business I can imagine surviving.

 

The only solutions occur in crisis mode, when horrible consequences are the threat.

There is no attempt at "governing."

 

It is completely pathetic, and a literal, legislative civil war.

 

[All_Pro_Bills]

7 minutes ago, sherpa said:

 

I am not confident.

This "government" would never survive in the objective, corporate world, or as any business I can imagine surviving.

 

The only solutions occur in crisis mode, when horrible consequences are the threat.

There is no attempt at "governing."

 

It is completely pathetic, and a literal, legislative civil war.

 

There are rumblings about whether or not certain cacus group on either side of the aisle will support the deal when it comes to a floor vote.

[sherpa]

8 minutes ago, All_Pro_Bills said:

There are rumblings about whether or not certain cacus group on either side of the aisle will support the deal when it comes to a floor vote.

 

Ya, and we need that.

Complete dysfunction.

[Tiberius]

 

[Tommy Callahan]

7 minutes ago, Tiberius said:

 

great news for all Americans. 

 

SMH

 

 

Here's what's in it;

The deal raises the debt ceiling by roughly $4 trillion for two years, and is consistent with the structure of budget deals struck in 2015, 2018 and 2019 which simultaneously raised the debt limit.

According to a GOP one-pager on the deal, it includes a rollback of non-defense discretionary spending to FY2022 levels, while capping topline federal spending to 1% annual growth for six years.

After 2025 there are no budget caps, only "non-enforceable appropriations targets."

Defense spending would be in-line with what Biden requested in his 2024 budget proposal - roughly $900 billion.

The deal fully funds medical care for veterans, including the Toxic Exposure Fund through the bipartisan PACT Act.

The agreement increases the age for which food stamp recipients must seek work to be eligible, from 49 to 54, but also includes reforms to expand who is eligible.

Claws back "tens of billions" in unspent COVID-19 funds

Cuts IRS funding 'without nixing the full $80 billion' approved last year. According to the GOP, the deal will "nix the total FY23 staffing funding request for new IRS agents."

The deal includes energy permitting reform demanded by Republicans and Sen. Joe Manchin (D-WV)

No new taxes, according to McCarthy.

Edited May 29, 2023 by Chris farley

[aristocrat]