Understanding the Debt Ceiling

The federal debt ceiling will be reinstated on August 1, 2021, at around $28.5 trillion. At that point, the Treasury Department will begin using accounting tools at their disposal, called “extraordinary measures,” to avoid defaulting on the government’s obligations. The Treasury Department has estimated that these measures will be exhausted as soon as mid-to-late-September, while the Congressional Budget Office (CBO), the Bipartisan Policy Center and other outside analysts predict exhaustion in the fall near the start of the next fiscal year (e.g., likely September, October, or November). At that point, absent a new agreement to either raise or suspend the debt ceiling, the Treasury will be unable to continue paying the nation’s bills. Congress could address the debt ceiling through reconciliation, which provides for passage of legislation with a simple majority vote in the Senate.

The national debt is the total amount of outstanding borrowings by the U.S. Federal government, accumulated over our history. The Federal government needs to borrow money to pay its bills when its ongoing operations cannot be funded by Federal revenues alone. When this happens, the U.S. Treasury Department creates and sells securities. These securities are the debt owed by the Federal government. There are many different types of Treasury debt; bills, notes, and bonds are the most common ones. The various types of debt differ primarily in when they mature—ranging from a few days to 30 years—and in how much interest they pay. The United States has not run an annual surplus since 2001, and has thus borrowed to fund government operations every year since then.

The debt limit is a ceiling imposed by Congress on the amount of debt that the U.S. Federal government can have outstanding. This limit has been set at $28.4 trillion since August 1st, 2021.

It is also important to note that the debt limit is not a forward-looking budgeting tool that reveals what policymakers think are ideal levels of spending and revenue. Rather, it reflects the spending and revenue decisions debated and enacted in prior years by prior Congresses and Administrations; in fact, 97 percent of the current national debt stems from policy choices made before the Biden Administration took office in January 2021—choices made by both parties on their own and in a bipartisan fashion. The debt limit is the amount that the U.S. Treasury can borrow to pay the bills that have become due based on these prior policy decisions.

Once the debt limit is hit, the Federal government cannot increase the amount of outstanding debt; therefore, it can only draw from any cash on hand and spend its incoming revenues. The U.S. Treasury can also take certain “extraordinary measures” to extend how long it can continue to pay all the government’s obligations while staying below the limit. These measures include accounting techniques within several government accounts that temporarily reduce the amount of U.S. Treasury securities issued to those accounts. These actions include suspending new investments or redeeming existing investments early. By reducing the amount of outstanding Treasury securities, the level of outstanding debt temporarily falls, slightly extending the amount of time that the government can continue to satisfy its obligations.

When the U.S. Treasury exhausts its cash and extraordinary measures, the Federal government loses any means to pay its bills and fund its operations beyond its incoming revenues, which only cover part of what is required (about 80 percent in 2019). While the United States has hit the debt limit before, it has never run out of resources and failed to meet its financial obligations. Take the debt limit crises in 2011 and 2013, for example; the debt ceiling was raised in the former episode (Congress raised the cap by an explicit dollar amount) and suspended in the latter (Congress eliminated the debt limit entirely for a specified period of time) in time, before the U.S. Treasury ran out of cash and exhausted all extraordinary measures. More recently, in 2019, the United States once again hit the debt limit, but Congress suspended the ceiling, eliminating the cap until August 1st, 2021.

@GOP et.,al

What’s Happening in Brazil

Ohio KKK Police Chief

An Ohio police chief has resigned after he was reportedly caught putting a Ku Klux Klan sign on a black officer’s desk.

Anthony Campo, the chief of the Sheffield Lake Police Department, was caught on CCTV putting a piece of paper with “Klu Klux Klan” written on it, according to reports. He also laid out a jacket to look like robes worn by KKK members.

Yet – Ohio is the latest state considering legislation to prohibit public schools from teaching critical race theory, which views racism as systemic in the nation’s institutions and promotes race-based reverse discrimination to achieve equity.

#Humans

How does on group of humans reject another group?

Marjorie Taylor Green

Rep. Marjorie Taylor Greene on Monday visited the Holocaust Museum and apologized for previously comparing coronavirus face-mask policies to the Nazi practice of labeling Jews with Star of David badges. But the Georgia Republican declined to walk back other controversial statements she has made, including one in which she compared the Democratic Party to Hitler’s party, the National Socialist German Workers’ Party. (Sonmez, 6/14)

Marjorie Taylor Greene, also known by her initials MTG, is an American politician, businesswoman, and far-right conspiracy theorist serving as the U.S. representative for Georgia’s 14th congressional district.

What concerns me the most it that in her current position representing Georgians that her belief system is no aligned with the facts. Additionally that no one is trying to remove her from office.

American First Caucus

WASHINGTON – A nascent effort by some conservative House of Representatives Republicans to form an “America First Caucus” to promote the policies of former President Donald Trump drew criticism on Friday for purported racial undertones in its founding document.

The effort is tied to first-term Representative Marjorie Taylor Greene and has a policy platform that promotes “a common respect for uniquely Anglo-Saxon political traditions” and advocates for infrastructure with esthetic value that “befits the progeny of European architecture,” Punchbowl News reported on Friday.

https://www.mercurynews.com/2021/04/16/house-effort-to-form-america-first-caucus-sparks-blowback/amp/

Will It Ever End…tRump

Yet my hope that the rise and eventual fall of Trump would provide an opportunity to reconfigure the sclerotic political gridlock that has come to characterize U.S. politics –seem increasingly distant now…

Biden vs. Trump

We’re not looking for Biden to #FixIt we’re looking to not have tRump phuck it up anymore.

#Xmas Presents for #Criminals

It’s a white, joyous Christmas for convicts with connections to President Trump.  The justice system — and the law enforcers who worked years to prosecute these cases — got a big lump of coal.  I’ve read that people have been approaching tRump to ask for pardons for themselves, their clients — even their former clients.

Why it matters: This official has no role in the pardon process. The request is a sign of the final days free-for-all among people who want to be on Trump’s extensive pardons list for personal and political allies.

Last evening, Trump granted full pardons to 26 more people, including his former campaign chairman Paul Manafort, longtime associate Roger Stone and Charles Kushner, father of Jared Kushner..

Manafort was one of the first major figures to be charged in the Mueller investigation.

Stone was charged and convicted for lying to investigators who were probing his contacts with WikiLeaks, which released damaging Democratic emails hacked by the Russian government during the 2016 campaign.

Charles Kushner is a developer who pleaded guilty in 2004 to filing false tax returns, retaliating against a witness and making false statements to the FEC as part of a prosecution by then-U.S. Attorney Chris Christie. True story: Manafort and Stone were once in business together. In the Reagan years of the early ’80s, Black, Manafort & Stone was one of the most formidable lobby shops in town.