Debt Ceiling Crisis Continues with Fear
- We have a debt crisis. There is no such thing as a debt ceiling crisis. It would be very easy for us to pay our bills.
- Yellen triples down on debt ceiling deadline. Warning on Monday that the US government is highly likely to run out of money as early as June 1. The date leaves President Biden and House Speaker McCarthy less than 10 days to find an agreement and the votes for a compromise to cut spending and raise the debt ceiling.
- Biden teases 14th amendment authority on debt ceiling. They are tamping this down. Nothing on CNN or on MSNBC this morning.
- Section 4 of the 14th Amendment says the validity of America’s public debt shall not be questioned. The clause was born of a concern that members of Congress from southern states might refuse to repay Civil War debts incurred in fighting the Confederacy. It was put in the constitution so the southern states could not deny the debt during the reunification of the states.
- He couldn’t use this to pay the bills from the behemoth bureaucracies that the federal government has established. Only the debt that has already incurred.
- Biden and McCarthy hold a productive debt ceiling meeting but no deal yet. Areas being discussed in debt ceiling negotiations: unspent COVID relief funds, work requirements for federal aid recipients, energy permitting process, capping federal spending.
- According to Goldman Sachs’ cash balance we are almost out. Janet Yellen will not say default. It is only lawmakers and the media. Janet Yellen will continue to say that we can’t pay our bills. There is another major influx of capital in June. Operating cash runs out on X day. They have exhausted their tax anticipation note.
- Biden goes to the G7 and makes a $375 M commitment to Ukraine. They aren’t trying to make a debt ceiling deal to help the middle class, they are making the deal for the rich.
- Trump said you’re going to go broke now or later.
- We do not have a capitalist country anymore where it runs the economy. The government cannot turn your economy around. We have to sell t bills to continue to turn the socialized economy. If it stops right now, we could stop socialism and return it to capitalism. The only thing you can default on is the debt. Social security is not something you would default on.
- Our founding fathers only intended for us to pay for our military to protect us at home. It is time for the capitalist system to come back to life.
