Free Republic

New York City is paying $387 per day to house and feed each migrant household in taxpayer-funded shelters. Over the course of a year this amounts to $141,255 per household. The median household income in the US is $75,000. A full-time minimum-wage job pays less than $15,000. Sen. John Barrasso (R-Wyo) asked Department of Health and Human Services Secretary Xavier Becerra "why workers who have to live on less should should be taxed so much for the less than lavish accommodations being provided for illegal immigrants?" Becerra said "we aren't letting New Yorkers bear all the burden of supporting these...

take a look at the recent Penn Wharton Budget Model (PWBM) publication showing how the United States will soon immolate itself and the rest of the world under its mountain of unpayable debt... the PWBM wastes no time gaslighting its audience. Its conclusion regarding America’s staggering $34 trillion national debt is equal parts terrifying, inevitable, and obvious: "Under current policy, the United States has about 20 years for corrective action, after which no amount of future tax increases or spending cuts could avoid the government defaulting on its debt."...The United States’ precarious balance sheet could lead to disaster even sooner...

At the heart of the decline in family wealth is China's real estate meltdown, which is having a pervasive effect on a society where 70% of family assets are tied up in property. Towards the end of last year, 34 of the top 50 Chinese property developers were in default.. China has rolled out new rules meant to expand access to commercial bank loans for property developers as Beijing doubles down on its effort to end a prolonged crisis in the real estate industry. In an attempt to stabilize financial markets and boost the economy, the Chinese government has cut...

A massive $124.5 billion worth of bonds are now in default in the entire $175 billion China property dollar bond sector ... Counting October, there is a total of $60.5 billion worth of Chinese property bonds due in the next 6 months, with offshore bonds taking up at least one third of it .... Country Garden's international bondholders are now seeking urgent talks with the company. Strains have also shown in other companies. State-backed Sino-Ocean Group ... Another major developer Gemdale .. seen its bonds slide after the resignation of its chairman sparked fears that it too may be in...

Chinese property developer Country Garden warned Tuesday that it cannot repay on time a 470 million Hong Kong dollar ($60 million) loan in the latest sign of distress after Beijing clamped down on mounting debts in the industry. The company said in a filing to the Hong Kong Stock Exchange that it “expects that it will not be able to meet all of its offshore payment obligations when due or within the relevant grace periods,” including U.S. dollar notes the firm has issued. The company said its sales were under “remarkable pressure.” Country Garden earlier had been hailed as a...

Michael Pento discussed the current state of the bond market and warned of the potential collapse of the US dollar due to the erosion of faith in the world’s reserve currency. He advised investors to sell long duration bond exposure and invest in short term US government debt. Pento also discussed the inflation and GDP acceleration, as well as China and Japan’s selling of US treasuries. He warned of the massive issuance and supply of US debt and questioned who will buy it, as the Federal Reserve is no longer buying and is instead selling their balance sheet, adding to...

This situation could be quite concerning for several reasons: Credit Score Damage: When people default on their student loans, it can wreak havoc on their credit scores. This means they’ll have trouble accessing credit in the future for things like buying a home, a car, or even just getting a credit card. It’s like a financial scar that can take years to heal. Financial Instability: Defaulting on loans often leads to financial instability. Borrowers may struggle to make ends meet, and this can impact their overall financial well-being. They might have to put off important life decisions like getting married...

I ain’t never been to Spain, but the US under Biden is like Spain in terms of default risk. Actually, I have to Spain numerous times and love visiting Barcelona. But the US debt fiasco under Biden and Congressional spending sprees has led to … US credit default swap being priced worse than Spain’s CDS. With Biden/Congress orgy of spending (and a declining economy in many important respects), the US is seeing Federal debt near $33 TRILLION and even worse, unfunded Federal liabilities (promises, promises) are at $193 TRILLION, almost 6 times the current Federal debt load. If you are...

China's largest private property developer warned on Wednesday of default risks if its financial performance continues to deteriorate, and said it "felt deeply remorseful" for its record loss in the first half. Country Garden (2007.HK) posted a net loss between January and June of 48.9 billion yuan ($6.72 billion), versus a 6.7 billion yuan net loss in the second half of 2022 and a 612 million yuan net profit in the first half of 2022. The results come as Chinese authorities take steps to revive the troubled property market, which accounts for roughly a quarter of the economy. The sector's...

Every country should pay its sovereign debt. Default, we are told, is not an option. But has anyone told China? The United States pays interest on approximately $850 billion in debt held by the People’s Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders. Successive U.S. administrations have chosen to sidestep this fact, allowing business and trade with China to proceed as normal. Now that the relationship with China has soured and the People’s Republic of China has become the greatest adversarial threat to the U.S. and Western security, policymakers should revisit...

Some student loan borrowers encouraged others to default on their loans "en masse" following the decision by the U.S. Supreme Court to cancel President Joe Biden's student loan debt forgiveness plan, but one expert told Newsweek why that may not be a good idea. "Okay, thing I can actually talk about: Mass default on student loan debt would be a really effective message and f*** you to this country from the folks most impacted by our constant slide backwards. Just don't pay it. Hit the bricks. En masse," Twitter user Derek Van Dyke wrote. On Friday, the Supreme Court reached...

Like the song “Walk away Renee,” the owners for the San Francisco Union Square Hilton and Park 55 Hotels are walking away from their sizeable loan payments. San Francisco is definitely feeling the blues. But it isn’t just San Francisco. Phil Hall reports that Fitch Ratings reduced its 2023 outlook for the U.S. real estate investment trust (REIT) sector outlook from “Neutral” to “Deteriorating,” citing the tumult in the commercial real estate space. While Fitch noted that most of its rated REITs “have the capacity to withstand such a slowdown within rating sensitivities [and] those with ample dry powder could...

Biden, Schumer, Yellen, and Brainard, luminaries in the leftist galaxy, spread fear of default. They focus solely on Treasury obligation default. Were they honest, these federal bureaucrats should also discuss default on exorbitant government spending on welfare and entitlement programs. Don't let them misdirect the argument to debt default only. These are two very different methods of default. It is irresponsible of these leftist luminaries not to look at both aspects of federal spending. When the Federal Reserve started printing dollars (called quantitative easing or Q.E.) in 2008, they used that $8 trillion of new money to expand federal spending...

Former House Speaker Newt Gingrich on Sunday applauded the debt limit deal forged by House Republicans and Speaker Kevin McCarthy (R-CA) with President Joe Biden. Gingrich took to social media to set out his thoughts on what he hailed as a “dramatic victory.” He said: The Debt limit deal is a dramatic victory for Speaker McCarthy and House Republicans. Before they passed their history changing bill no one would have believed it possible to cut spending, reestablish work requirements, reform permitting for energy and infrastructure and more

Treasury Secretary Janet Yellen sent a letter to Congress on Friday, saying that the government will now have until June 5 before it runs out of money to pay its bills rather than the June 1 deadline she had announced. "Based on the most recent available data, we now estimate that Treasury will have insufficient resources to satisfy the government's obligations if Congress has not raised or suspended the debt limit by June 5," Yellen said, according to ABC News. That allows congressional leaders a few more days to negotiate with the White House. Congressional leaders were expected to vote...

VIDEODespite the fact that we have been warned that the debt ceiling situation could lead to the existential crises of a default, Congressman Jerry Nadler is pleasantly sleeping through it all. Is he sleeping any more deeply than Joe Biden who has taken a lid from Friday afternoon until Tuesday rather than actually negotiate on the debt despite the Janet Yellen default zero hour that is rapidly approaching? And what voices is Nadler hearing in his dreams?

US Treasury Secretary Janet Yellen changed the drop dead date on a US default from June 1 to June 5, daring Speaker McCarthy to step over the line. The debt ceiting is so urgent that Biden went on vacation to Delware for Memorial Day weekend. In fact, Biden and Yellen expect McCarthy to dance. White House and Republican negotiators tentatively narrowed differences but were still clashing Friday on key issues as the Treasury Department signaled extra time was available before a potential US default. The new so-called X-date buys negotiators for House Speaker Kevin McCarthy and President Joe Biden more...

President Joe Biden has been seemingly unable to catch a break as he and the White House scramble to show competence and strength amid debt ceiling negotiations with House Speaker Kevin McCarthy (R-CA) who has outmaneuvered Democrats at what seems to be every turn. This week, amid contradictory and increasingly desperate White House press briefings, more bad news for Biden emerged in the form of a new poll showing more Americans would blame Biden for a default than they would McCarthy or congressional Republicans. The survey, conducted and released by Fox News with direction from Beacon Research and Shaw and...

What happened to Biden? He used to be a “reasonable” Senator (reasonable for a racist Democrat, that is), willing to negotiate with the opposition on budgetary issues and the debt ceiling. Now we have “Progressive Joe” who is acting like crazy Progressive Congresswoman Pramila Jayapal from Seattle. {Aka, Seattle’s Worst!} But his newly found Progressive identiy is leading down a terrible path. Rating agencies are putting the US of credit watch because of Biden’s newly found Progressive back bone. (Progressive means progressing towards full blown Communism). Ratings company warns on worsening political partisanship US AAA ratings on review with negative...

I have gotten a flood of emails and text messages asking about what happens if Biden defaults on the US debt. In short, Biden has made a career out of spending money, as has Speaker McCarthy. They both have an incentive to raise the debt ceiling, but whether it is cuts to Biden’s insane budget (higher than Covid-era spending) and wants to raise taxes on the middle class to pay for it. McCarthy wants a trimmed budget (aka, back to pre-Covid spending levels) and NOT raises taxes. They will eventually agree somewhere in the middle (US Congress member Pramila Jayapal...