News

McConnell Won’t Block Debt Ceiling Increase, Says He Wants Democrats To ‘Proudly Own It’

capitolhilltim

Although Congressional fights over debt limits are not new, there is an interesting twist. On Tuesday night, the House passed a bill with a party-line vote. This allows Congress to prevent a default on the nation’s debt within the next few weeks. Here’s the tricky part: “The measure would create a special pathway—to be used only once, before mid-January—for the Senate to raise the debt limit by a specific amount with a simple majority vote, allowing Democrats to steer clear of a filibuster or other procedural hurdles so that Republicans would have no means to block it,” The New York Times reports.

If this agreement holds, then there will not be another fight like it before next year’s midterm elections.

Both sides stand to profit from it. Democrats hold the majority of both the House and Senate, so they are not required to revisit the debt limit before the next midterms. McConnell agreed to these terms. PoliticoReports state that Democrats must raise the debt limit to a particular amount, rather than suspending it temporarily, like through an election. This means that you will hear lots of attacks ads next year about Democrats voting to increase the debt ceiling to $1.5 trillion, $2 trillion, or whatever final amount.

McConnell stated that he believes they have reached a resolution to the debt-ceiling issue. This is consistent with Republican views to raise the debt limit for this amount. It also allows Democrats to own it proudly, which they are happy to do,” McConnell told reporters at Tuesday’s press conference. Wall Street Journal. As you finish those lines, it is almost impossible to hear his winking.

How does this affect the fiscal outlook of federal government? It’s not good.

As with credit cards, raising your debt limit can often be compared to paying off debt. However, this metaphor only partially applies. Yes, the real problem is the spending—spending that both parties have approved, of course. You must pay the bills once you agree to borrow money in order to purchase something.

However, raising the limit on debt is not like applying for a loan. Get more credit cardsYou can use the money to pay any credit card debts you already have. Let’s drop this metaphor. It allows the Treasury to continue borrowing money to pay spending Congress approved, even though Congress didn’t provide any means to do so.

Realistically, credit card companies won’t allow you to get new credit to repay old credit. America is able to access a virtually unlimited amount of credit. It’s a problem if that situation changes.

Relatedly, it now looks like President Joe Biden’s big domestic spending proposal—the Build Back Better (BBB) plan—won’t be seriously considered by the Senate until next year. Another big spending bill which heavily relies on future borrowing is this one.

FREE MINDS

Rep. Peter Meijer (R–Mich.) Rep. Peter Meijer (R-Mich.) was among 10 Republicans who voted in support of President Donald Trump’s impeachment after the January 6th riot. This was just three days after Justin Amash was sworn into Congress. Tim Alberta profiled one of Congress’ most intriguing members. Politico:

Meijer said he was “pretty much” resigned to Trump’s win in his party’s nomination for 2024. He also worries about Trump’s chances of returning to the White House as Biden loses momentum. Meijer is well aware of the potential strain Trump’s candidacy could place on an election system that almost collapsed in the previous cycle. Worse, Meijer believes Trump is inspiring copycats who are smarter than Trump and might be able to succeed in the place where Trump fell.

Meijer asserts that Donald Trump’s real threat is not him.

It is frightening to hear the powerlessness of his voice as he speaks this. He went from being a romantic politician to becoming an empowered survivor and a daunted skeptical in a matter of one year. He tried to force his party into a reckoning; the reckoning is now for Republicans like him.

You can read the entire thing.

FREE MARKETS

Yusaku Maezawa, fashion entrepreneur and entrepreneur is the latest space tourist in the world.On Wednesday, he blasted off of Kazakhstan and plans to live in 12 days at the International Space Station (ISS).

Maezawa’s producer Yozo Hirano will accompany him on the journey. ABC News reports that Maezawa has “compiled a list of 100 things to do in space after asking the public for ideas.” Since 2009, he is the first to travel to the ISS as a space tourist.

QUICK HITS

• Many thanks to those who helped. There are reasonsThe annual webathon With more than $630,000 in donations from a record number supporters, this was the biggest fundraiser we have ever held. Thank you so much.

• The Pentagon will receive another budget increase, from $740 billion up to $768 billion, despite the end of the Afghanistan war.

• Sen. Joe Manchin’s (D–W.Va.) The opposition to Build Back Better seems to be growing:

• The proposal by Congress to make it mandatory for women to register to draft the National Defense Authorization Act this year was dropped.

• According to the company, a third dose of Pfizer’s vaccine appears to have been effective in fighting the new Omicron variant.

• Do you not like the COVID policy at your place? Bryan Caplan, economist says it’s time to move elsewhere. The same applies to non-COVID strategies.

• Stock up on holiday beverages now!

• Virginia Tech suspended a student for bashing a referee at a football game and his assistant athletic director.