US Slams Into Debt Ceiling - Here's What It Means for Veterans, Retirees, & Federal Workers
The flaming dumpster fire that is Joe Biden’s failed presidency lurched into an alarming new chapter this week, as the nation teeters on the verge of defaulting on its bills after it hit its $31.4 trillion debt ceiling.
The debt ceiling is the total amount of money the U.S. government can borrow to meet its obligations, including paying Social Security and Medicare benefits, military salaries, tax refunds and interest on its $31 trillion national debt.
In a letter Thursday to Republican Speaker of the House Kevin McCarthy, Treasury Secretary Janet Yellen said she’s taking “extraordinary measures” to prevent the United States from defaulting on its financial obligations:
“In my letter of January 13, 2023, I noted that Public Law 117-73 increased the statutory debt limit to a level of $31.381 trillion, and informed you that beginning on January 19, the outstanding debt of the United States was projected to reach the statutory limit,” she wrote. “This letter serves to notify you, pursuant to 5 U.S.C. § 8348(l)(2), of the extraordinary measures Treasury began using today.”
Those “extraordinary measures,” which include selling existing investments and suspending reinvestments in the Civil Service Retirement & Disability Fund and the Postal Service Retiree Health Benefits Fund, are expected to last through early-June.
The letter was a follow-up to a sobering Jan. 13 missive, in which Yellen urged McCarthy to raise the debt ceiling and warned of the dire consequences if this is not authorized.
In other words, the chief financial officer of the United States — a career economist — is begging Congress to increase the nation’s credit line so it can borrow more money to pay its bills.
Why? Because the U.S. cannot manage its budget and spends more money than it has.
“It is therefore critical that Congress act in a timely manner to increase or suspend the debt limit,” Yellen wrote in the Jan. 13 statement. “Failure to meet the government’s obligations would cause irreparable harm to the U.S. economy, the livelihoods of all Americans, and global financial stability.”
If this situation is not resolved, Social Security payments, Medicare and Medicaid, and veterans benefits could be disrupted and federal services could be suspended.
The worst part of it all? As this serious crisis looms, take a look at what Biden has been up to:
Kamala Harris refuses to drop to her knees in front of an entire NBA team.
Kamala shouts “I’m not doing that!”
Joe Biden in turn gets on his knees before the Golden State Warriors.
The White House crowd awkwardly gasps. Cringe. WATCH 🥴
— Benny Johnson (@bennyjohnson) January 17, 2023
While Biden is off being a derelict goof, there are fortunately still a few serious people left, and they are all vowing to take action regarding the debt ceiling.
Kevin McCarthy is being pressured by his own party to use this debacle to negotiate for cutbacks, which the spendthrift Democrats don’t want to do.
On Wednesday, the speaker expressed frustration with the nation’s fiscal irresponsibility, likening Democrats to an out-of-control child with a credit card.
“If you had a child and you gave them a credit card, and they kept hitting the limit, you wouldn’t just keep increasing it,” McCarthy told Fox News. “You’d first see what are you spending your money on? How can we cut items out?”
“If you had a child and you gave them a credit card, and they kept hitting the limit—you wouldn’t just keep increasing it. You’d first see what are you spending your money on? How can we cut items out?” – @SpeakerMcCarthy on the federal debt limit and cutting spending pic.twitter.com/tmhiFdJadF
— House Republicans (@HouseGOP) January 19, 2023
On Thursday, Republican Rep. Marjorie Taylor Greene of Georgia said she will not give the federal government another blank check.
“I will not sign off on a clean bill raising the debt ceiling limit!” she told Fox News.
Mitch McConnell and Chuck Schumer wrote checks the American people can’t pay. Then they worked with Joe Biden and Nancy Pelosi to pass the problem to @HouseGOP.
I will not sign off on a clean bill raising the debt ceiling limit! pic.twitter.com/Kne73d73Cp
— Rep. Marjorie Taylor Greene🇺🇸 (@RepMTG) January 19, 2023
Similarly, Republican Sen. Rand Paul of Kentucky — a fiscal conservative — said the GOP must not raise the debt ceiling unless some conditions are met.
“Democrats want a clean bill to raise the debt ceiling with no conditions. Republicans must say NO!” he tweeted.
Our national debt has gone up $4 trillion in just two years and now stands at a record-breaking $31 trillion.
Democrats want a clean bill to raise the debt ceiling with no conditions.
Republicans must say NO! https://t.co/m4QJydyB3r
— Rand Paul (@RandPaul) January 19, 2023
Economist Peter Schiff torched the profligate United States as a Ponzi scheme.
“The U.S. Treas. Sec. has admitted the only way to avoid a default on the National Debt is to raise the #DebtCeiling so the Govt. can borrow from new lenders to repay existing lenders,” Schiff tweeted. “This amounts to an official admission that the U.S. is running the world’s largest Ponzi scheme.”
The U.S. Treas. Sec. has admitted the only way to avoid a default on the National Debt is to raise the #DebtCeiling so the Govt. can borrow from new lenders to repay existing lenders. This amounts to an official admission that the U.S. is running the world’s largest Ponzi scheme.
— Peter Schiff (@PeterSchiff) January 16, 2023
Others on Twitter agreed with this assessment, painting a bleak picture of what’s next for American economics:
It is all a fake drama …
1) They will always raise the debt ceiling
2) The US Treasury will sell more debt
3) The Fed will eventually buy all of the debtYou can’t taper a Ponzi. 😢 pic.twitter.com/PNn3anI32S
— Wall Street Silver (@WallStreetSilv) January 19, 2023
Since 1960, the United States has raised the “debt ceiling” 78 times, and there will be 79 times soon.
Tbh, this really looks like a Ponzi scheme pic.twitter.com/OlBPmzLUR1
— DaiWW (@BeijingDai) January 20, 2023
The two sides might argue and come to some agreement to cut spending
but ultimately they will both agree to raise the debt ceiling to keep the debt ponzi going
pushing us one step closer to hyperinflation pic.twitter.com/EYLucCYauH
— Crypto Tea (@CryptoTea_) January 19, 2023
As a reminder, the Biden administration has pledged nearly 100 billion U.S. tax dollars to Ukraine to defend its borders while our own border is under daily siege and Americans struggle to pay for groceries and gas.
This emergency should serve as a wake-up call to compel our leaders to stop frivolously wasting money and start managing the nation responsibly.
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