Free Republic

For months now, the Democrats have been attacking the Republicans, accusing them of attempting to cause the U.S. to default on its financial obligations. Meanwhile, the GOP has insisted they aren’t going to cave on the debt limit but also says they are looking for cuts to address Washington D.C.’s exorbitant spending. That has become the rallying cry that has gotten conservatives behind House Speaker Kevin McCarthy. But, behind the scenes, there appears to be very little progress on actually finding a path forward on this. McCarthy hasn’t spoken with or negotiated with President Joe Biden in months, and the...

The debt ceiling limit is back in the news. In the past, political leaders have responded to concerns about this issue by suggesting that Social Security checks might not go out on time should Congress not agree on another debt ceiling extension. This begs the obvious question: Why a program with a $2.8 trillion reserve cannot pay benefits on time? Pundits have weighed in on the subject, as have the fact checkers who largely agree that checks should not be at risk -- at least in theory. It is time for the Treasury Department to explain why Social Security checks...

As with so many of our national debates, the truth about the current debt limit fight is not just different from the narrative set forth by the corporate media; it's the opposite. The media narrative, to recap, is that the debt limit can and should be increased as a matter of course. Anything that veers from this automatic debt limit increase, the story goes, is just flat-out irresponsible. This narrative is being pushed not just in the media, but by Wall Street, corporate America, the Democrats in Congress, and even some Republicans. That's not surprising since those groups are increasingly...

In Washington, the fight over the debt limit tops the list of bipartisan messes. So let's blame both sides and finally get to work. According to news reports, there are 24 GOP senators who want to do something. This is the story: Nearly half of the Senate Republican Conference has signed on to a letter to President Biden warning they will not vote for any bill to raise the nation’s debt limit unless it’s connected to spending cuts to address the nation’s $31 trillion debt.The letter, led by conservative Sens. Mike Lee (R-Utah) and Ted Budd (R-N.C.), says it is...

House Speaker Kevin McCarthy (R-Calif) said that he plans to meet with President Joe Biden on Wednesday to discuss raising the federal debt limit while controlling government spending. During an interview with CBS’s “Face the Nation,” McCarthy brushed off the idea that the U.S. would default on its debt. “We’re not going to default,” McCarthy said, adding “this won’t come to fruition until sometime in June.” He aimed his target at Democrats calling them out for wanting to raise the debt ceiling. “There will not be a default,” McCarthy continued. “But what is really irresponsible is what the Democrats are...

If House Republicans were serious about making spending cuts at least practical, if not immediately achievable, it’s easily done.At the start of the Netflix self-help documentary “Get Smart With Money,” a voice actor says, “How do you get ahead without taking out loans?” That, in a sentence, is the maddening thought process that animates Washington — Republicans, Democrats, and the media alike.As we approach the federal debt ceiling, Republicans are doing the thing where they swear they won’t raise it without spending cuts, only to inevitably trip over themselves when asked the most innocuous, straightforward questions pertaining to what specifically...

When We the People get to the point in our personal finances where we are at risk of not even being able to pay the interest on our credit cards and loans, that’s a wake-up call at the cliff’s edge of bankruptcy. Most of us never get there. When we do, it’s time to (1) stop spending and (2) get those bills paid down, if not completely paid off. Such personal responsibility needs to be manifest at our national level too. It’s time to stop funding every seemingly good idea that comes along. Fiscal restraint is required. We need a...

WASHINGTON (AP) — Treasury Secretary Janet Yellen notified Congress on Friday that the U.S. is projected to reach its debt limit on Thursday and will then resort to “extraordinary measures” to avoid default. In a letter to House and Senate leaders, Yellen said her actions will buy time until Congress can pass legislation that will either raise the nation’s $31.4 trillion borrowing authority or suspend it again for a period of time. Those measures include divesting some payments, such as contributions to federal employees’ retirement plans, in order to provide some headroom to make other payments that are deemed essential,...

Perhaps annual increases for a number of years of the debt limit could be traded for partial ratification of a federal expenditure control amendment such as: If any fiscal year after September 2032 ends in the red, all persons elected to a term of federal office encompassing any portion of that fiscal year shall be forever barred from from obtaining another federal position, another term or any federal origin payment or benefit of any type. I believe most Republican-run states would ratify such an amendment. To make it likely that it gets ratified by at least 38 states, the debt...

Congressional Democrats on Tuesday moved to unilaterally raise the federal debt ceiling by $2.5 trillion. Senate Majority Leader Charles E. Schumer said the borrowing-limit increase is needed to ensure the federal government can continue paying its debts into early 2023. “Responsible governing has won on this exceedingly important issue,” said Mr. Schumer, New York Democrat. “The American people can breathe easy and rest assured there will not be a default.” The Senate is expected to vote on a resolution hiking the debt ceiling, a federally imposed limit on how much the U.S. can borrow to meet its expenditures, as early...

A bill introduced on Tuesday would allow for another increase in the debt limit, and forestall expected Medicare reductions that are a sole result of Democrats’ agenda.Just when Democrats and their agenda continue to flounder, along comes Mitch McConnell to give them another lifeline. Rather than using the mismanagement of the Senate by Majority Leader Chuck Schumer to extract concessions, McConnell gave two huge concessions to bail Schumer out of his self-inflicted wounds. A bill introduced on Tuesday would allow for another increase in the debt limit, and forestall expected Medicare reductions that are a sole result of Democrats’ disastrous...

I was a decent hockey player and an average baseball player, but there is no sporting event that exists that I don’t know exactly what the participants should have done. If they had all, and I do mean all, listened to me, they would have easily won or succeeded at whatever personal objective they were attempting to achieve. You’re probably the same way. It’s called “Monday Morning Quarterbacking” for a reason, and everyone is guilty of it. Sometimes, however, no matter how insistent the “quarterbacks” are after the fact, there really weren’t that many options at the time. You get...

Senate Minority Leader Mitch McConnell (R-Ky.) told Republican colleagues at lunch Wednesday that he will make a new offer to Senate Majority Leader Charles Schumer (D-N.Y.) on a path forward to raising the nation’s debt limit, marking the start of long-awaiting negotiations between the two leaders.

President Biden warned Monday that the U.S. may default on its debt for the first time in history if Senate Minority Leader Mitch McConnell (R-Ky.) continues to block Democratic attempts to raise the federal borrowing limit. Speaking to reporters following a Monday speech on the fiscal standoff, Biden said he cannot guarantee that the U.S. will be able to pay its bills past Oct. 18 if GOP senators are unwilling to clear a path to keep the country solvent. “I cannot believe that will be the end result, because the consequences are so dire,” he said. “But can I guarantee...

Treasury Secretary Janet Yellen said Thursday she supports abolishing the federal debt limit, calling it a “very destructive” threat to the full faith and credit of the U.S. In congressional testimony, Yellen argued it made no sense to limit the Treasury's ability to pay bills already approved by Congress and the president with an arbitrary cap on how much debt it can issue. “When Congress legislates expenditures and puts in place tax policy that determines taxes, those are the crucial decisions Congress is making,” Yellen said during a hearing before the House Financial Services Committee, where she appeared beside Federal...

We're all gonna die—and it's all the Republicans' fault! With some slight exaggeration, that was CNN's message this morning regarding Republican reluctance to raise the debt limit. Mugging a petrified look [see screencap] New Day co-host John Berman opened the show by predicting nothing short of "the potential collapse of the U.S. economy," because "Republicans have voted against paying U.S. debts." Moments later, Berman fearmongered: "The week from hell could turn into the economic calamity from hell if the U.S. defaults on its debts, which Republicans, for now, have voted to let happen." CNN economics commentator Alexis Glick took the...

Treasury Secretary Janet Yellen on Wednesday warned the USA could hit its debt limit by next month, warning Congress that she will run out of maneuvering room.In a letter to leaders of Congress, Yellen said she can’t provide a specific date for when she’ll be not able to keep the federal government funded unless the chamber raises the debt limit. Should that happen, according to estimates from the Congressional Budget Office, funding for Social Security, Supplemental Security Income, and Medicare will likely be halted.“Given this uncertainty, the Treasury Department is not able to provide a specific estimate of how long...

1) Hold the line for as long as it takes until the pledged wall is funded while also upholding pledge not to sign another bloated spending bill, ie, my counter offer is this: Nothing. Plus you will pay for the wall and you will cut government and you will cut spending. 2) Do not allow the congress to raise the debt limit. Make them live within the funds available, reallocate from 'nonessential' areas to essential only. Return functions that cannot be paid for that are not delegated to the federal government by the constitution to the states and the people...

The amount of money the government spends on programs and the amount it collects in taxes could change from the budget office projections, so the office warns that the Treasury could run out of funds even earlier. Currently, the federal deficit stands at $693 billion, which is an increase of $134 billion than what it projected in January. The federal government has an outstanding debt of $19.8 trillion, which includes $14.3 trillion in public debt and $5.5 trillion held by government accounts. Spending on major government programs such as Social Security and Medicare causes the amount of borrowing to increase....

Treasury Secretary Steven Mnuchin has called on Congress to raise the United States debt limit "at the first opportunity." In a letter to congressional leaders dated Wednesday, Mnuchin said the Treasury will stop issuing certain state and local securities on March 15, when the most recent suspension of the debt limit expires. Mnuchin said the Treasury will likely start taking "extraordinary measures" the next day, when the U.S. will be at its statutory limit, to prevent default. "As I said in my confirmation hearing, honoring the full faith and credit of our outstanding debt is a critical commitment. I encourage...