From one financial crisis to another US national debt hits $33 Trillion as Government shutdown looms


Important Takeaways:

  • US national debt hits $33T for first time in history
  • The national debt – which measures what the U.S. owes its creditors — hit $33.04 trillion as of Monday afternoon, according to new data published by the Treasury Department. By comparison, just four decades ago, the national debt hovered around $907 billion.
  • “The United States has hit a new milestone that no one will be proud of: our gross national debt just surpassed $33 trillion,” said Maya MacGuineas, the president of the Committee for a Responsible Federal Budget. “Debt held by the public, meanwhile, recently surpassed $26 trillion. We are becoming numb to these huge numbers, but it doesn’t make them any less dangerous.”
  • The historic debt level comes as Congress races to avert a government shutdown at the end of September.
  • “As lawmakers drift from one short-term fiscal crisis to the next, our national debt just keeps piling up, trillion after trillion,” said Michael Peterson, CEO of the Peter G. Peterson Foundation. “After the debt ceiling showdown in June, we crossed the $32 trillion debt milestone. Now, as we stare down a potential government shutdown just three months later, we have raced past $33 trillion in red ink.”
  • The latest findings from the Congressional Budget Office indicate that the national debt will nearly double in size over the next three decades. At the end of 2022, the national debt grew to about 97% of gross domestic product. Under current law, that figure is expected to skyrocket to 181% at the end of 2053 — a debt burden that will far exceed any previous level.

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Still no decision on Nation’s Debt Limit; Experts warning of Economic Crisis as soon as June 1st

Revelations 13:16-18 “Also it causes all, both small and great, both rich and poor, both free and slave, to be marked on the right hand or the forehead, so that no one can buy or sell unless he has the mark, that is, the name of the beast or the number of its name. This calls for wisdom: let the one who has understanding calculate the number of the beast, for it is the number of a man, and his number is 666.”

Important Takeaways:

  • Here’s who misses checks if the U.S. hits the debt brink in June
  • Its latest dire projection — delivered hours before President Joe Biden and congressional leaders meet at the White House — follows Treasury Secretary Janet Yellen’s warning last week that the nation could run out of money as soon as June 1, dramatically shortening the timeline for lawmakers to lift the borrowing cap even as the two parties remain deeply at odds over how.
  • While it’s far from certain how, exactly, the Treasury Department would handle a default — including whether it would prioritize certain payments or delay paying the government’s bills — the think tank noted that about $50 billion in Social Security benefits are set to go out in the first half of June, in addition to more than $20 billion in payments to Medicaid providers, $6 billion in federal salaries, $12 billion in veterans benefits and $1 billion in SNAP benefits, also known as food stamps.
  • The distress signals from government and outside forecasters have done nothing to jumpstart talks between the White House, which is insisting on a “clean” debt limit increase, and Republicans, who are demanding spending cuts in exchange for lifting the borrowing cap. The Biden administration has refused to negotiate, vowing to keep government funding on a separate track.
  • A number of Republicans aren’t feeling the pressure either, viewing Yellen’s early June projection as nothing more than a political ploy aimed at squeezing the GOP to swallow a clean debt hike. Akabas said Yellen’s warning is consistent with how the Bipartisan Policy Center is analyzing the situation, however, noting that “no risk is too small a risk to flag.”
  • Pressure from the markets is what may ultimately force action, Zandi said.
  • “I don’t think lawmakers will act until they’re pushed to act by the stock market and the bond market saying, ‘If you guys don’t, this is what’s going to happen’,” Zandi said. “There’s going to be a lot of red on the screen, a lot of 401Ks are going to be diminished and there’s going to be a lot of angry people.”

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National Debt hits $31 Trillion: a spending spree or just redistributing your wealth?

Proverbs 22:16 Whoever oppresses the poor to increase his own wealth, or gives to the rich, will only come to poverty.

Important Takeaways:

  • US national debt nears $31 TRILLION for the first time ever and is still rising due to Joe Biden’s semiconductor vow, student loan forgiveness and green plans… despite Covid spending halt
  • The national deficit is on track to hit $31 trillion as soon as this month
  • President Joe Biden continues to up U.S. spending including on student loan forgiveness, semiconductor chip manufacturing and green initiatives
  • COVID spending has finally halted after $4.5 trillion was allocated to assist American people and companies in the midst of the pandemic
  • Biden has touted the drop in deficit coming off of the health emergency
  • Overall debt has continued to climb and has shot up during Biden’s presidency
  • In Biden’s two years the U.S. has seen record-high inflation and gas prices along with a recession after two straight quarters of negative GDP growth

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A Multitrillion dollar federal spending bill that cost zero dollars?

Rev 6:6 NAS And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.”

Important Takeaways:

  • How Magical Thinking Led America To $30 Trillion In Debt
  • In the Wizarding World of Washington, you can now say a multitrillion dollar federal spending bill “costs zero dollars.”
    • President Biden tweeted
    • My Build Back Better Agenda costs zero dollars.
    • Instead of wasting money on tax breaks, loopholes, and tax evasion for big corporations and the wealthy, we can make a once-in-a-generation investment in working America.
    • And it adds zero dollars to the national debt.
  • Unfortunately, Americans are now paying a heavy price for this magical thinking. Inflation—spurred at least in part by record government spending and inaction on other issues—is running at its highest rate since 1982. The prices for meat and eggs are up 12.2% since last year. Furniture and bedding is up 17% and used cars and trucks are up 40.5%.
  • Meanwhile, the Treasury Department recently reported America’s total national debt is now over $30 trillion—the highest ever. To put this in context: If you stacked $30 trillion of $100 bills you could almost reach the weather satellites orbiting the earth at over 20,000 miles above us.

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‘Every step of the way’: McConnell pledges battle over Biden infrastructure plan

WASHINGTON (Reuters) -U.S. Senate Minority Leader Mitch McConnell on Thursday said he will fight President Joe Biden’s $2 trillion infrastructure plan “every step of the way” and predicted the sweeping package would not see support from Republican lawmakers in Congress.

At a news conference in Owensboro, Kentucky, McConnell said the Biden proposal underscores deep philosophical differences between Republicans and Democrats over taxes and the national debt. He told reporters that he does not believe the White House has a public mandate to pursue the plan.

“I’m going to fight them every step of the way, because I think this is the wrong prescription for America,” he said.

Biden’s infrastructure plan, unveiled on Wednesday, charts a course for dramatic change in the direction of the U.S. economy and includes investments in traditional projects like roads and bridges along with climate change initiatives and human services like elder care.

“There’s more money in that plan that the president laid out in Pittsburgh for electric cars than for roads and bridges. Let me say that again: more money for electric cars than roads and bridges,” McConnell said.

Biden has proposed funding the package by raising the tax rate on U.S. corporations to 28% from 21% and making it harder for companies to use offshore tax shelters and other methods to reduce their tax burdens.

McConnell warned that “massive tax increases” would harm the economy and said the package’s spending level could run up the debt. The White House says the infrastructure proposal would more than pay for itself.

“My view about infrastructure is, we ought to build that which we can afford and not either whack the economy with major tax increases or run up the national debt,” he said.

(Reporting by David Morgan and Doina Chiacu, Editing by Franklin Paul and Sonya Hepinstall)

Trunews: U.S. will hit debt ceiling no later than Nov. 3: Treasury’s Lew

The U.S. government will hit a legal debt limit and be unable to borrow more money no later than Nov. 3, Treasury Secretary Jack Lew said on Thursday.

In a letter to congressional leaders, Lew added that a remaining cash balance of less than $30 billion would swiftly deplete.

“In fact, we do not foresee any reasonable scenario in which it would last for an extended period of time,” Lew said, as he urged Congress to raise the debt cap.

Trunews – Trunews: U.S. will hit debt ceiling no later than Nov. 3: Treasury’s Lew