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~*Official US Government Default Watch 2021 Thread*~


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WWW.NBCNEWS.COM

Democrats also say they have a deal to pay for a multitrillion-dollar social safety net package.

 

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The White House has started to tell government agencies to prepare for a potential government shutdown if a stopgap bill is not signed into law by Sept. 30.

 

"We are taking every step we can to mitigate the impacts of a potential shutdown," White House press secretary Jen Psaki said during a briefing Thursday.

 

There is no formal guidance yet, but it's "just a reminder we're seven days out and we need to be prepared, of course, in any event of any contingency, so we see this as a routine step and one just to be prepared in any event of what could happen," she said.

 

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WWW.WASHINGTONPOST.COM

The GOP's expected opposition is sure to deal a death blow to the measure, which had passed the House, and adds to the pressure on Democrats to devise their own path forward ahead of a series of urgent fiscal deadlines starting this week.

 

And of course, WaPo acting as uncritical stenographers.

 

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Ahead of the planned Monday vote, Senate Minority Leader Mitch McConnell (R-Ky.) staked his party’s position — that Republicans are not willing to vote for any measure that raises or suspends the debt ceiling, even if they have no intentions of shutting down the government in the process. GOP lawmakers feel that raising the borrowing limit, which allows the country to pay its bills, would enable Biden and his Democratic allies to pursue trillions in additional spending and other policy changes they do not support.

 

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WWW.CNN.COM

Treasury Secretary Janet Yellen warned lawmakers that the federal government will likely run out of cash and extraordinary measures by October 18 unless Congress raises the debt ceiling.

 

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Treasury Secretary Janet Yellen warned lawmakers that the federal government will likely run out of cash and extraordinary measures by October 18 unless Congress raises the debt ceiling.

 

The new estimate from Yellen raises the risk that the United States could default on its debt in a matter of weeks if Washington fails to act. A default would likely be catastrophic, tanking markets and the economy, and delaying payments to millions of Americans.

 

"It is uncertain whether we could continue to meet all the nation's commitments after that date," Yellen wrote in a letter, adding the projection is based on estimated tax payments.

 

 

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On 9/28/2021 at 2:24 PM, Commissar SFLUFAN said:
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WWW.CNN.COM

Treasury Secretary Janet Yellen warned lawmakers that the federal government will likely run out of cash and extraordinary measures by October 18 unless Congress raises the debt ceiling.

 

 


I watched this live and in its entirety on Tuesday. My favorite part was honestly:

Chairman Brown: Mr. Powell, do you feel as though it's time for a black woman on the federal reserve board?


Powell: We have no role in selecting who serves, but... yea, sure!

 

Also, Toomey being Toomey and not grasping what the debt ceiling really even is after Yellen flat-out explained it in plain English. 

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8 hours ago, Ricofoley said:

I honestly don't know what they're expecting to happen at this point. Like... you gotta do something. I can't believe they didn't have a better plan for this other than writing some tweets about how much the GOP increased the debt under Trump.

Seriously, just tell them to get f*cked and raise it.

 

Thing is, the people in the know—I.e., finance capital and investors who stand to lose money in the case of a default—know this is bullshit.  That’s why financial markets might wobble, but won’t implode like they would under a real default.

 

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Therefore, we encourage you to stay above the fray and focus on what truly matters: the exceedingly low likelihood of an actual default even if Congress stalls for a long while. Bond principal payments are covered, as hitting the debt ceiling doesn’t prevent the Treasury from issuing new debt to refinance a maturing bond. That leaves interest payments, which the Treasury can manage easily. Exhibit 1, which refreshes a chart we ran in July, shows interest payments and tax revenues in each of the past 12 months. Even with revenues being a bit lumpy due to the timing of estimated tax payments and other factors, they dwarf interest expenses each month, with plenty left over for a good number of other accounts payable. Considering the Treasury has both the ability to prioritize interest payments over all others and a de facto Supreme Court mandate to do so, via the justices’ interpretation of the 14thAmendment, an actual default is incredibly unlikely.


The only other sensible strategy I could see is not raising it and then going on a campaign pointing out that Republicans are ransoming people’s Social Security payments and stuff like that, (which is theoretically true but practically untrue) but the far better option is to just bypass it entirely and showcase how pointless it is.  I’m all for sensible bipartisanship, but once in awhile ya gotta play hardball and punch the other guy in the stomach so he stops harassing you.

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