While people live their lives, carry out happiness with their children, plan weddings and friend parties, their government is supposed to be taking a backseat to all that and DOING THE WORK that goes along with maintaining quality of life for Americans. Government is not supposed to be the headlines of the day, so much as the boring truth of the uninteresting event of governance.
The current problem with the debt ceiling as I understand it, is some taxes have been deferred and that has resulted in an income short fall. The taxes are supposed to be collected by fall or the beginning of the new fiscal year when the budget will then balance. In the meantime, the Republicans can call up the deferred taxes in legislation to end the debt limit demands if they were willing to inconvenience friends and donors.
But.
Instead.
...The GOP, (click here) dominated by MAGA fascists and backed by extreme right-wing billionaires, is using “legislative terrorism” and the threat of a global financial crisis to impose $4.8 trillion in unpopular spending cuts to social safety net benefit programs, undo Democratic legislative victories like the Inflation Reduction Act, and undermine the transition to renewable energy while blocking any new taxes on the wealthy.
House Speaker Kevin McCarthy, R-Calif., is captive to the MAGA House Freedom Caucus, whose votes were critical to his narrow win as speaker. In exchange, McCarthy agreed to MAGA demands to block raising the debt ceiling and force Biden and Democrats to cap discretionary spending at 2022 levels. MAGA House members could care less if a default triggers an economic recession and results, by some estimates, in the loss of six million jobs, a surge of unemployment to 7%, and a steep hit of pensions and 401K plans, endangering retirement security for tens of millions.
Fanatical MAGA GOP House members seem gleeful at the prospect of wreaking havoc and creating a recession. They think angry voters will blame Biden and the Democrats and reward Republicans with a victory in the 2024 presidential and congressional elections....
In case there are people in the USA that don't "get it." THIS IS NOT GOVERNANCE, it is however politics.
The most benevolent answer to this crisis is to allow a debt ceiling increase and bring about smooth sailing knowing that the budget will balance in the near future. However, let's imagine for a minute that the Republicans crash the economy and in a few months the additional income to the USA treasury now has no real place to go because the original purpose is dead in the water. What would that look like? A tax payer refund? I doubt that. But, it would go unsaid and all of a sudden the USA House can spend without notice by anyone on all their favorite wealthy giveaways, including a huge tax cut for the highest income Americans. You know, their donors.
McCarthy is not a leader, he is a puppet. It is time for him to act responsibly and bring about smooth sailing for all the programs for all Americans.
Don't forget. This crisis is also leaning toward communist favoritism. The USA debt impacts the international community. Those impacts may very well include the USA military and NATO.
Hello?
Anyone paying attention?
September 22, 2021
September 22, 2021
By Jeff Stein
...The backchanneling by Mnuchin and Paulson (click here) — who had previously worked together at Goldman Sachs — reflects the widespread alarm among economists and U.S. business interests about the consequences of an unprecedented default on the federal debt. If the United States was unable to borrow money to pay all of its bills, a number of economists have predicted that it would lead to a calamity that could trigger a meltdown in financial markets and plunge the economy into recession. Republicans have refused to help Democrats approve a new debt ceiling suspension despite approving three such measures during the Trump administration, under which the national debt rose by roughly $8 trillion.
Yellen has recently warned that the debt ceiling must be raised or suspended by some time in October or the country’s fiscal situation will be severe.
Paulson met with McConnell in his office in the U.S. Capitol last week and discussed the debt limit standoff, two people familiar with the exchange said. Paulson primarily listened to McConnell’s views on the matter, as the Senate GOP leader made clear he was not bluffing about Democrats having to raise the debt limit without Republican support. Paulson expressed in the meeting a high degree of concern about the dangers and likelihood of a federal default and its implications for the global economy, the people said. Paulson worked closely with McConnell and other lawmakers in 2008 to address the financial crisis....
The Republicans pride themselves on appearing to be impressively prudent about tax dollars.
NOT!
There is nothing impressive about this:
...Paychecks and pensions could be canceled or delayed (click here)
The U.S. military has 1.3 million active-duty troops, 800,000 reservists, and 700,000 civilian employees. Active-duty pay varies widely, ranging from just under $2,000 to over $17,500 per month.
There are also more than 2 million veterans entitled to retirement payments. The median veteran pension is $1,756 per month.
After a default, the government may have to miss or delay these payments.
Healthcare and other benefits at risk
Active-duty soldiers are entitled to benefits such as medical, dental, vision, and prescription drug coverage, a housing allowance, a retirement savings plan, and school tuition assistance.
About 8.5 million veterans receive similar benefits, including disability payments, low-cost health insurance, and tuition and mortgage assistance. Another 450,000 households receive survivor benefits because they are the spouses and/or children of fallen veterans.
According to the White House Council of Economic Advisors, the average disabled veteran receives $1,428 per month in disability payments while a veteran in school gets $1,740 per month for tuition.
All this assistance could be halted during a default.
National Security Risks
In their recent article, “Debt-Ceiling Brinksmanship Weakens US National Security,” former Secretaries of Defense Leon Panetta and Chuck Hagel argue that America’s military might is due in part to our economic credibility.
They write that, in a default, “Bipartisan commitments to the national security needs of friends and allies would be impacted. … Funding for essential civilian and defense modernization efforts would be undermined.”
Similarly, the Military Officers Association of America warns that missing paychecks and cutting benefits could worsen the relationship between troops and the government in the long term.
“There must be a mutual commitment between those who serve and our nation: Any loss of trust and confidence in the value of service could prevent current and future generations from wanting to serve.”
The Bottom Line
There are plenty of “debates” that seem important to people in Washington but don’t matter much to regular people. The debt ceiling debate isn’t one of them. If the U.S., for the first time in our history, defaults on our debt obligations, every American will pay the price....
Now, is not the time to be playing God with American lives and those of our allies. The USA is impressing the world with it's agility to carry out military prowess that may very well end a genocide against an innocent and primarily neutral country.
This debt ceiling thing is ridiculous, childish and EMBARASSING !
Honestly!
Our veterans have put their lives on the line for this country. Current military families receive benefits covered by the USA budget and current debt ceiling needs. They ARE NOT TO SUFFER!
Jerks!
