House votes to pass debt ceiling bill in win for McCarthy

[vegas giants]

If they cave, McCarthy will face a referendum vote on his speakership because of the rules change he had to agree to in order to get the votes to be the speaker.

No he won't. I'd bet on that too

 

[vesper]

And that's exactly what the House passed bill does, raises the debt ceiling.

It had to be raised to cover our debt. But in Biden's budget he is wanting to spend trillions of more dollars we do not have.

 

[gbg3]

It's never been anything more than a perfunctory technicality, until it's only recently been used politically.

See comment #96.

 

[upsideguy]

And thus my point is made


They know they will be blamed not rewarded

I am not certain of that. I don't believe Republican leadership has a clue of the calamity they could cause.... then you have the "burn it all down" influences of the extreme of that party. Moreover, they could cause a massive recession which would not help Biden in 2024, even if its the Republicans fault because the triggering event would be 16 months away from the election. The Republicans do not care if they cause pain, only if they get blamed for the pain. I would not bet that we do not go over the cliff.

 

[vegas giants]

I am not certain of that. I don't believe Republican leadership has a clue of the calamity they could cause.... then you have the "burn it all down" influences of the extreme of that party. Moreover, they could cause a massive recession which would not help Biden in 2024, even if its the Republicans fault because the triggering event would be 16 months away from the election. I would not bet that we do not go over the cliff.

There is no chance we will default

 

[Chomsky]

They'll still be blamed

That's what occurred when Ted Cruz tried to hold-up Obama with the Debt Ceiling. Obama held, Cruz caved, and Republicans got the lion's share of the blame.

 

[MTAtech]

CBO's projections, the federal deficit totals $1.4 trillion in 2023 and averages $2.0 trillion per year from 2024 to 2033.

The Budget and Economic Outlook: 2023 to 2033

In CBO’s projections, the federal deficit totals $1.4 trillion in 2023 and averages $2.0 trillion per year from 2024 to 2033. Real GDP growth comes to a halt in 2023 and then rebounds, averaging 2.4 percent from 2024 to 2027.

www.cbo.gov

( long term projections are a bit wonkier - but reall because of Trump and Biden we just added ..was it $13 trillion?)

anyway one looks at this its not sustainable

Let’s start by dispelling a myth. The debt ceiling debate is not about authorizing new spending. It’s about Congress paying debts it has already incurred. Refusing to pay would be like skipping out on your mortgage, except with global consequences. Because of the central role of the United States — and the dollar — in the international economy, defaulting on our debts could spark a worldwide financial meltdown.

 

[anatta]

How do you take it from raising the debt ceiling, to renegotiating last Congress' budget?

The debt ceiling was a perfunctory motion until just recently it became politicized.

why not? there is nothing sacred about the bloated Omnibus.. MConnell put the Repubs in that position
instead of a CR -so the House is pushing back on that dweeb

 

[vesper]

Too bad more American's don't understand the above.

Guy's like McCarthy should never put us in a position of reneging on our debts.

He's not! that is just plain false. The debt ceiling was raised to cover our debt. What Biden has a problem with is his budget raises spending trillions more that we do not have.

 

[Chomsky]

By everyone. I bet everything they cave

Last time they got within two weeks (IIRC) before Social Security checks were to stop.

I predict this time they'll also stop short of stopping Social Security checks. But if they don't, may God help them come NOV '24.

 

[upsideguy]

There is no chance we will default

I hope you are right as I know my business would get severely hurt with a deep recession (though a shallow one would actually be a benefit)....... I like to think there is some rationality at the core, but these people are willing to run for President a guy that is facing multiple indictments, including for his actions trying to overthrow democracy. Rationality and decency have no presence in this Republican party. I hope this gets worked out, but "no chance" is actually a bit naive.

 

[dobieg]

CBO's projections, the federal deficit totals $1.4 trillion in 2023 and averages 2.trillion per year from 2024 to 2033.

The Budget and Economic Outlook: 2023 to 2033

In CBO’s projections, the federal deficit totals $1.4 trillion in 2023 and averages $2.0 trillion per year from 2024 to 2033. Real GDP growth comes to a halt in 2023 and then rebounds, averaging 2.4 percent from 2024 to 2027.

www.cbo.gov

( long term projections are a bit wonkier - but recall because of Trump and Biden we just added ..was it $13 trillion?)
anyway one looks at this its not sustainable. can we at least cut the projected rate of growth of deficit spending?

Exactly!

Our current debt to GDP has exploded to 129%.

 

[vegas giants]

Exactly!

Our current debt to GDP has exploded to 129%.

View attachment 67446304

The debt is not a problem

 

[anatta]

Let’s start by dispelling a myth. The debt ceiling debate is not about authorizing new spending. It’s about Congress paying debts it has already incurred. Refusing to pay would be like skipping out on your mortgage, except with global consequences. Because of the central role of the United States — and the dollar — in the international economy, defaulting on our debts could spark a worldwide financial meltdown.

ya ya we know- and adding scads of new debt brings us to that inevitable default.
say it with me. 32 trillion and sky rocketing.. so use whatever one can..like I said there are no sacred cows

The forecast predicts an increase in public debt up to 46.4 trillion U.S. dollars in 2033, which would be about 118.2 percent of the U.S. GDP

^ and that is with no recession and with decent growth

 

[vegas giants]

ya ya we know- and adding scads of new debt brings us to that inevitable default.
say it with me. 32 trillion and sky rocketing.. so use whatever one can..like a said there are no sacred cows

^ and that is with no recession and with decent growth

Our debt causes us no problems

 

[Chomsky]

From the OP's article:
"Republicans agreed to allow proposed work requirements for Medicaid beneficiaries..."

A significant number of seniors living in nursing homes are Medicaid recipients. Is the GOP going to force them to get jobs? They are in nursing homes for a reason.

I've seen that number above at around 10 percent.

However it's much higher among the disabled.

So it seems the plan is to put elderly & disabled to work?

 

[Fletch]

well, it's demonstrably true.

U.S. National Debt by President

Check out how the national debt has increased by year and president. Depending on how you measure it, the answers may differ.

www.thebalancemoney.com

By your own link, 3 of the top 5 were democrats.

 

[anatta]

Exactly!

Our current debt to GDP has exploded to 129%.

View attachment 67446304

which tells me even the CBO are blue skying the debt.. as Dylan wrote A Hard Rain's A-Gonna Fall .

 

[Chomsky]

If they cave, McCarthy will face a referendum vote on his speakership because of the rules change he had to agree to in order to get the votes to be the speaker.

I've seen Gaetz recently refer to this. Interestingly, he didn't sign-off on the current Bill.

 

[gbg3]

From the OP's article:
"Republicans agreed to allow proposed work requirements for Medicaid beneficiaries..."

A significant number of seniors living in nursing homes are Medicaid recipients. Is the GOP going to force them to get jobs? They are in nursing homes for a reason.

Maybe you should read the bill, look at the age range being proposed and recognize these (largely Medicaid Expansion) recipients are not nursing home patients. Or, you can just keep writing comments like the one I quoted.

 

[Kushinator]

Well we are already over a trillion for this fiscal year and we are only half way through it. That seems massive to me.

Spooky numbers huh? Figures.

GDP will probably be something like $27 trillion by Q3 2023. A $1.4 trillion deficit is 5.2% of GDP.

 

[Chomsky]

And that's exactly what the House passed bill does, raises the debt ceiling.

It's not "raised". It's short

 

[dobieg]

Here is the report from the US Treasury back in 2022 when US Debt to GDP stood at 97% (129% today). Pay attention to net interest payments as that is what will sink us if we don't get our spending under control.


US Treasury

"The primary deficit projections in Chart 5, along with those for interest rates and GDP, determine the debt-to-GDP ratio projections in Chart 6.

• The debt-to-GDP ratio was approximately 97 percent at the end of FY 2022, and under current policy and based on this report’s assumptions is projected to reach 566 percent in 2097.
• The debt-to-GDP ratio rises continuously in great part because primary deficits lead to higher levels of debt. The continuous rise of the debt-to-GDP ratio indicates that current fiscal policy is unsustainable.
• These debt-to-GDP projections are lower than both the 2021 and 2020 Financial Report projections."

Financial Report of the United States Government - Executive Summary - An Unsustainable Fiscal Path

fiscal.treasury.gov

 

[MTAtech]

It had to be raised to cover our debt. But in Biden's budget he is wanting to spend trillions of more dollars we do not have.

So? Except for four years during Clinton, the government has been spending more money than it has for about 100 years. The country has done pretty well during that time.

 

[trouble13]

Dead on arrival in the senate...

Are you saying that Senate Democrats are going to let the government default on its debt obligation over Republicans cutting $160 billion out Bidens budget request?