Mnuchin: 'If we need to spend more money we will, and we'll only do it with bipartisan support'

The Hill ^ | 4/25/20 | Justine Coleman

[Nero Germanicus]

Treasury Secretary Steven Mnuchin said Sunday that the administration will send more funding to states if necessary but will only do so with bipartisan support.

There is an emerging battle over whether to fund state and local governments in the next stimulus bill. Democrats including Speaker Nancy Pelosi (D-Calif.) have vowed to include such support in the legislation.

“Fox News Sunday” host Chris Wallace asked Mnuchin if President Trump would back giving aid to the states as several governors across the country are requesting.

Mnuchin responded that the president had “heard from governors,” and the administration would consider providing this money to the states.

“But our focus right now is really on execution and – that’s what we’re focused on,” he said, adding “we’ll win this war, if we need to spend more money we will, and we’ll only do it with bipartisan support.”

Wallace also asked the treasury secretary if he’s concerned about having a national debt higher than the country’s GDP. Mnuchin said low interest rates have been helpful but the administration will have to look into how to handle the debt.

“We’re going to need to look at over time how we deal with that issue,” he said. “But right now, we’re in a war and we have to protect American workers and American business, and we’re going to do whatever we need to take to do that.”

[Meatspace]

No question that he will have the support of Democrats to spent those trillions of dollars.

[LeonardFMason]

Trump needs to clean up his Nobel vs Pulitzer Twitter mess and then be more precise. 30 minute COVID-19 updates. Let Pence do them. NO Q&A. Trump needs to focus on positive economic efforts and getting the economy moving.

[PGR88]

Leftists in NY and IL have already bankrupted their states - and everyone else gets to pay for it. Hurray.

[plain talk]

““But right now, we’re in a war and we have to protect American workers ...”

There will always be some pandemic or crises these politicians can use as an excuse to spend our childrens’ future money or resources.

[Da Coyote]

He means, “If we need to PRINT more money......”

[Bratch]

"Oceania has always been at war with Eastasia.”

[shanover]

It’s like waiting for an asteroid,volcano,hurricane or earthquake to happen: American will one day be such an economic catastrophe that it will be devastating beyond imagination. It’s only a matter of time and nobody knows when but it’s inevitable. It could be within a year,5,10, or 20 but this is unsustainable.

[fhayek]

Help for problems created by the virus is one thing (and I have skepticism there), but getting on the hook for past financial sins, that is an entirely different matter.

[Bratch]

Sunday Talks: Secretary Mnuchin -vs- Insufferable Chris Wallace…

Posted on April 26, 2020 by sundance

Fox News host Chris Wallace is to Fox News as George Stephanopoulos is to ABC.  Both members of the allied uniparty system fuction for the same purpose.  Once you see the strings on the marionette is impossible to go back to a time when you did not see them. Wallace’s job is to manipulate his audience while giving the impression of questioning.

In today’s interview with Secretary Mnuchin the insufferable Wallace is cheering for as much economic damage as possible and questioning anyone who might dare have a more fact-based approach.  At one point Wallace even calls the CBO “independent experts”.

Mnuchin on expectations for restarting economy, small business relief

The biggest of all the bigger financial issues around the economic shut-down will ultimately come down to a battle this spring/summer over a massive bailout for state governments to replace their missing revenue.  States like California, New Jersey, Illinois, Connecticut & New York have been struggling with financial issues for years.

“You never let a serious crisis go to waste. And what I mean by that it’s an opportunity to do things you think you could not do before.”  ~ Rahm Emanuel

Long before the Wuhan Virus those states were near financial collapse.  The only thing keeping them afloat was as expanding economy, and new revenue as a result of President Trump’s economic policies (making bigger pies).

The economic shut-down in those specific states makes their preexisting financial trouble exponentially worse.

Not only will CA, NJ, IL, CT and New York demand a bailout, a very massive bailout to cover their revenue shortfall, but they will almost certainly use the wuhan virus as an excuse to cover and bail-out preexisting budget deficits.  Governor Andrew Cuomo hinted toward his intention weeks ago.  He sees this as an opportunity to get federal money.

So when Senate Majority Leader Mitch McConnell throws a bucket of ice water in the face of blue state governors who were anticipating to “make money” by forcing the country to subsidize their overindulgent spending habits, obviously Cuomo is apoplectic.

For several decades, and particularly since 2008, the issue of unfunded liabilities has been a growing problem for the Blue State governors.  One reason Obamacare was created was to address this issue on the union and healthcare side. However, the underlying over-spending by state legislators/governors was never addressed.

The solution of allowing states to declare bankruptcy has been a part of that discussion for years. However, every Blue state governor knows if they declare bankruptcy they will never sell another bond again…. which means no investment… which means they will implode.

If the laws changed allowing states to declare bankruptcy, internally the blue states would collapse… there would be a massive exodus… people would flee the rust and collapse…. housing values would plummet overnight in Blue states…. business would leave… unemployment would skyrocket…. it would be statewide chaos.

The ultimate result would be smaller populations within the Blue state misery zones.

Think about the worst impacts and outcomes within the city of Detroit, Michigan, due to these issues on a municipal level… now overlay that visible outcome across an entire state; or group of states.

So we can look forward to an epic battle over federal bailouts of the state revenue shortfall. New York, New Jersey, Illinois, Connecticut and California will be demanding hundreds of billions, perhaps trillions.

This will be one of the issues that frames the election.

Keep watching… we’ve seen this all before.

 

[SanchoP]

The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary. -- H.L. Mencken

[Leaning Right]

> will only do so with bipartisan support <

That seems fair. That way everyone will be able to get a little pork in the bill.

“Democrat Senator, we value your support. So yes, we will include $30 million for lesbian queer midget theater studies.”

[Ann Archy]

NO!!!! HELL NO!!! OPEN UP THE COUNTRY AND CLOSE THE DAMN MONEY SPIGOT!

[Mr. Jeeves]

My CPA says none of his clients with large- or medium-sized banks have received a dime of PPP money yet. Only the very few that were with small community banks or credit unions got anything.

But the political class is sure busy taking credit for saving small business...

[eyeamok]

How long until we add Zeroes???

[Governor Dinwiddie]

Their is no bankruptcy law governing the states. If there were, it would allow states to spend like a drunken sailor and then get a free “do over”. Bankruptcy would let them discharge their debts. Instead, let them go broke, be poor, and reform their government and pay off their debts.

Their are many creative ways they could pay off their debts. For example, let them sell their parkland to developers. Waterfront property always brings a good price.

[rktman]

Hmmmm. Bi-partisan huh? So dems load the pork wagon to the hilt and the republicrats buy in. Yeah, that’s it.

[aces]

see country fall very easily, sadly

[ronnie raygun]

The next round will be interesting

[libertylover]

American will one day be such an economic catastrophe that it will be devastating beyond imagination.

I'm surprised it hasn't happened already and I don't see how it cannot happen at some point.