Posted on 02/01/2023 9:15:22 AM PST by John Semmens
With Republicans demanding spending cuts in exchange for an increase in the federal debt limit and President Biden refusing to consider negotiating a compromise, House Democrats are proposing legislation that would eliminate any limit on the debt.
Rep. Bill Foster (D-Ill) argued that "if there were sufficient popular support for limiting how much the government can borrow voters wouldn't be electing so many Democrats. Rather than periodically raising the limit, I say we simply allow the government to borrow and spend as much as it wants to. The GOP's refusal to go along threatens the full faith and credit of the United States."
"What threatens the full faith and credit of this country is the Democrats' continued insistence on spending money we don't have," House Speaker Kevin McCarthy replied. "It took the country 225 years to accumulate the $9 trillion in debt that existed before Obama became president. Now, 15 years later this debt has more than tripled. We now pay more than $400 billion per year just paying the interest on this debt. We must constrain spending if we want to avoid bankruptcy."
Foster wanted to know "what's so bad about bankruptcy? In theory, creditors can seize your assets. But what use are the federal government's assets going to be to the people who bought government bonds? Their only sensible option would be to continue to deploy the property, buildings, armaments and so forth for the same purposes as they are currently used. They'll just be different hands. Most people won't know the difference."
McCarthy suggested that "there might be some profound differences. A lot of the federal debt is owned by foreign governments. China has a particularly large portfolio of US government bonds. Maybe these new bosses won't be the same as the old bosses."
In related news, the Congressional Budget Office has just reported that the Trump tax cuts of 2017 led to a growth boom that actually increased federal tax revenues by $1.5 trillion over the past five years. So, contrary to Democrats' claims, those tax cuts are not the cause of the soaring federal deficits and debt.
If you missed any of the other Semi-News/Semi-Satire posts you can find them at...
https://www.gopbriefingroom.com/index.php/topic,490487.0.html
Better than unlimited taxes (not semi-satire).
Best: DISMANTLE THE $3+ TRILLION UNCONSTITUTIONAL PORTION OF GOVERNMENT.
The GOP isn’t much help is it?
My answer: elect non-politicians like Trump who have not been toxified inside the D.C. beltway.
No worries the end is near for this nation anyways. Can’t run this kinda debt and last long..
Not yet. A lot will happen between now and when Jesus takes his own outta here and THAT event will launch the destruction of the whole known world including America.
Modern monetary theory (MMT) is a heterodox macroeconomic supposition that asserts that monetarily sovereign countries (such as the U.S., U.K., Japan, and Canada) which spend, tax, and borrow in a fiat currency that they fully control, are not operationally constrained by revenues when it comes to federal government spending.Let the unicorns farting rainbows abound!Put simply, modern monetary theory decrees that such governments do not rely on taxes or borrowing for spending since they can print as much money as they need and are the monopoly issuers of the currency. Since their budgets aren’t like a regular household’s, their policies should not be shaped by fears of a rising national debt
Why not? I think every time this has come up it was eventually raised. Why go through the charade of acting like we actually have a debt limit?
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