Treasury secretary warns ‘extraordinary measures’ needed to keep US from defaulting on debt as soon as next week

[BlueTex]

I've already said that "lowering your income", i.e. tax cuts were not a responsible approach. You're just not going to be fix things by taxing somebody else. The spending beyond your means has got to stop.

Was the Trump spending during COVID spending beyond our means?

 

[bave]

Conservative ideology says that Denmark’s policy choices should be a disastrous hellhole, with grass growing in the streets of Copenhagen. If Denmark, and other progressive countries, are hellholes, they’re doing a very good job of hiding that fact.

There is something to be said for a tiny population which is almost perfectly homogenous.

Using the debt limit as a hostage is like going out to a fancy restaurant, racking up a huge bill and then refusing to pay the credit card bill when it arrives. Congress appropriated spending and now it’s time to pay the bill.

While I agree both parties are culprits in this, that doesn't mean that change has to happen, or it will be made to happen. We can't even manage to stop *increasing* spending. The current administration is one of the most spendthrift administrations in history, purely for vote buying at that. How do you stop the urge from politicians, on both sides, from buying votes each cycle?

Undocumented people getting medical treatment? That’s what civilized societies do and it doesn’t cost all the much. As I said, that’s civilized and no wonder Republicans object to it.

How many other nations in the world have had to provide for the number of illegals we have had to? Let alone to the extent of that provision? Why are we the only developed nation that has a birthright citizenship based on where you were born?

 

[bave]

Was the Trump spending during COVID spending beyond our means?

You can debate whether his last round was necessary, what I don't think is debtable was the $2T Biden threw on the fire .

 

[Paradoxical]

I suppose Steve Mnuchin stayed in his lane and kept his mouth shut the entire time he was Trump's Treasury Secretary?

Part of the Treasury Secretary's job IS to make recommendations to Congress and the President on all matters financial whether domestic expenses of international. I'm thinking maybe you need to read up on what the Treasury Secretary's job really is and stop taking pot shots in the dark.

She is a partisan.

 

[BlueTex]

You can debate whether his last round was necessary, what I don't think is debtable was the $2T Biden threw on the fire .

This $2T?

House Republicans promote elements of infrastructure package they voted against

Several House Republicans are praising parts of the recently enacted funding measure they see as beneficial to their districts after they bashed the overall bill as wasteful.

www.nbcnews.com

House Republicans tout infrastructure funding they voted against

House Republicans who voted against the infrastructure bill have been touting funding for their state that came from it.

abcnews.go.com

Sen. Rick Scott praises the funding he tried to bury

UPDATED Feb. 3: The story was updated to add comment from Rep. Pressley's office. After the Biden administration announc

www.politifact.com

 

[bave]

This $2T?

House Republicans promote elements of infrastructure package they voted against

Several House Republicans are praising parts of the recently enacted funding measure they see as beneficial to their districts after they bashed the overall bill as wasteful.

www.nbcnews.com

House Republicans tout infrastructure funding they voted against

House Republicans who voted against the infrastructure bill have been touting funding for their state that came from it.

abcnews.go.com

Sen. Rick Scott praises the funding he tried to bury

UPDATED Feb. 3: The story was updated to add comment from Rep. Pressley's office. After the Biden administration announc

www.politifact.com

No. The COVID stimulus he promised. Ya'know, the "Give us the Senate and we will give you $2000"?

 

[Objective Voice]

She is a partisan.

And Mnuchin wasn't? Give me a break! (Actually, Mnucin was worse! He was a Trump lacky! That being said...)

Unless you have something more of substance and real significance to add to the discussion, we're done here.

 

[Kushinator]

No. The COVID stimulus he promised. Ya'know, the "Give us the Senate and we will give you $2000"?

Again, we know that employment was beginning to contact and therefore additional stimulus was necessary. It's better to overshot the output gap than risk a double dip and elevated inflation was going to happen no matter what as supply chain disruption and changes in consumer preference were baked in.

By all means... continue to clutch your pearls.

 

[bave]

Again, we know that employment was beginning to contact and therefore additional stimulus was necessary. It's better to overshot the output gap than risk a double dip and elevated inflation was going to happen no matter what as supply chain disruption and changes in consumer preference were baked in.

By all means... continue to clutch your pearls.

Have you ever met a democratic spending program you didn't like?

But hey, let's continue to just burn trillions a year and pretend it is great and necessary with no serious threat to the future stability of the nation.

 

[BlueTex]

Have you ever met a democratic spending program you didn't like?

But hey, let's continue to just burn trillions a year and pretend it is great and necessary with no serious threat to the future stability of the nation.

How was the Iraq war financed? Did we raise taxes?

 

[bave]

How was the Iraq war financed? Did we raise taxes?

You will note I am consistently advocating greater fiduciary responsibility on the part of both parties.

The GOP loves spending money on wars and tax cuts. The Democrats love spending money on entitlements.

Btw, how is the war in Ukraine being funded? We are throwing ~$10B/month (on the record) into that furnace.

 

[Paradoxical]

Have you ever met a democratic spending program you didn't like?

But hey, let's continue to just burn trillions a year and pretend it is great and necessary with no serious threat to the future stability of the nation.

Exactly. Time to stop the madness

 

[SuperDS77]

Then the far right is going to have to negotiate that for every percentage spending cut, there must also be the same amount of increase of tax percentage on the rich and big business. With tax loopholes closed for big business and the rich.

Spending cuts alone isn't going to balance the budget and pay down the debt.

Nobody said they would. Sure can't hurt. So-called "big business" only pass on the increases in taxes and regulation to the consumer. Economic growth sure would help.

There must be increases in taxes too. Close the loopholes. Stop the welfare to big business.

The thing is, the far right never wants to raise taxes. They just want to cut programs for the poor and those on social security.

Said every college sophomore promoting their version of socialism.

The cuts on programs for the poor have been slashed drastically since the 80s.

What? There is much more spending on programs currently.

Do you think the rest of the worlds economies will be unnafected by a US debt default and economic crash?

No. Thing is, there is NOT going to be a debt default. Won't happen. Never has in any of the other 20 or so "shutdowns" such as they are.

Do you negotiate on paying your creditors? The debt ceiling is paying debt on money that is already spent.

No it isn't. Our debt obligations are paid by the continual incoming revenue. This is about FUTURE spending.

You negotiate on budgets, not on paying your debts. I think it's funny that Republicans never have any concerns about the debt ceiling when a Republican is president. There must be something special about a debt ceiling when the president is a Democrat.

Yeah, elections have consequences. Republicans should use every bit of power that they have to extract their policy preferences. You know darn sure the Democrats would, and do. Eat it.

No. Using the debt limit to negotiate is akin to holding the economy hostage. ‘I’ll kill the hostage unless you agree to my political demands.’

Uh, no.

My, my the drama with this one!

 

[BlueTex]

Exactly. Time to stop the madness

The time to "stop the madness" is when passing appropriations, not defaulting... This isn't Trump world where we can declare bankruptcy and stiff those who provided goods and services without consequence.

 

[bave]

The time to "stop the madness" is when passing appropriations, not defaulting... This isn't Trump world where we can declare bankruptcy and stiff those who provided goods and services without consequence.

That's not working. It is far harder to stop an appropriation, complete with earmarks, than it is to stop a debt ceiling increase. That is the core of why this situation keeps arising.

 

[BlueTex]

That's not working. It is far harder to stop an appropriation, complete with earmarks, than it is to stop a debt ceiling increase. That is the core of why this situation keeps arising.

So the answer is to crater the economy? What line of work are you in? There are few who would not be impacted by a default.

 

[bomberfox]

There is effectively no way to save the nation short of monetizing the debt at this point and debasing the dollar. We are running perpetual $1T annual deficits, in ten years they will be $3T annual deficits and then it is game over. The problem with spending isn't defense, it is entitlements, something the democrats have worked tirelessly to expand for the last many decades, full well knowing it would blow up the finances of the nation.

Gotta buy them votes.

Pandering to defense contractors isnt vote buying?

 

[bave]

So the answer is to crater the economy? What line of work are you in? There are few who would not be impacted by a default.

I own a number of businesses, everything would be impacted by a default, of course.

That isn't however an excuse to keep this bullshit circus going. Politicians are cowards, they are afraid to stop delivering the "Bread and Circus" model. So instead they just keep buying votes praying that it doesn't implode on their watch.

 

[bave]

Pandering to defense contractors isnt vote buying?

Sure, but it is a pittance of the overall problem. The reality is that we need a world class defense, that is expensive. We would be better served focusing our defense spending on our own needs rather than policing the world. Now, if you mention that, you are called a "Putinist" in record time.

 

[bomberfox]

There is something to be said for a tiny population which is almost perfectly homogenous.



While I agree both parties are culprits in this, that doesn't mean that change has to happen, or it will be made to happen. We can't even manage to stop *increasing* spending. The current administration is one of the most spendthrift administrations in history, purely for vote buying at that. How do you stop the urge from politicians, on both sides, from buying votes each cycle?




How many other nations in the world have had to provide for the number of illegals we have had to? Let alone to the extent of that provision? Why are we the only developed nation that has a birthright citizenship based on where you were born?

you guys have yet to show homogeneity is the reason it works. why dont you read some history?

 

[Paradoxical]

The time to "stop the madness" is when passing appropriations, not defaulting... This isn't Trump world where we can declare bankruptcy and stiff those who provided goods and services without consequence.

Default. We are broke. No more money from the hard-working taxpayers for TG communes.

 

[BlueTex]

Default. We are broke. No more money from the hard-working taxpayers for TG communes.

We are not broke, good lord... What is your line of work?

 

[TomFitz]

Have you ever met a democratic spending program you didn't like?

But hey, let's continue to just burn trillions a year and pretend it is great and necessary with no serious threat to the future stability of the nation.

We never heard a single peep out of you when your beloved savior was in the White House.

 

[Paradoxical]

We are not broke, good lord... What is your line of work?

We're tapped, bluetex. Your mom and dad isn't letting you use their credit card anymore. You rang up debt for them for silly things that were nice at the time but are now tossed into the garbage heap. No more. We done.

 

[Peacenik]

Looks like we are going to see how stiff McCarthy's and the house republicans collective spines are sooner than anticipated.

In the article the WH says flatly that they will not negotiate, that this should just be done no questions asked.

Let us hope McCarthy does not agree.

https://www.cnn.com/2023/01/13/politics/debt-limit-janet-yellen-letter-to-kevin-mccarthy/index.html

By Nikki Carvajal and Tami Luhby, CNN
Updated 1:50 PM EST, Fri January 13, 2023

"
CNN —

The Treasury Department said Friday the US will reach the debt limit on January 19 and “extraordinary measures” will need to be taken, setting up one of the first major battles on Capitol Hill after Republicans took control of the House.
...
The deadline comes far sooner than many experts had expected. Most were predicting the debt ceiling would last at least until the summer, when the Treasury Department would have to start taking extraordinary measures to avoid defaulting on the government’s obligations.


The debt ceiling was last raised in December 2021 to $31.4 trillion.

The White House said Friday it will not offer any concessions or negotiate on raising the debt ceiling.


“We will not be doing any negotiation over the debt ceiling, but broadly speaking, at the start of this new Congress, we’re reaching out to all the members … making sure that we have those connections with those new members,” White House press secretary Karine Jean-Pierre said.

Yeah, the extraordinary measures would be Republicans caring about America for a change.