Yellen's warning about the debt ceiling.

OK, so Janet Yellen warns that if the congress doesn't increase the debt ceiling by June, the US could default on it's $31 trillion national debt. The warning was dutifully reported on by the media in appropriately solemn tones. Janet descends like a goddess from on high and declares this epiphany.

Is anyone curious about the timing of this warning? Wy weren't we talking about this debt limit when Biden and his congress crammed through the $1.7 trillion spending debacle just one month prior in the lame duck democratic congress?

Is it best if we just default in 2023 and get it over with? Maybe it would be doing our children and grandchildren a huge favor! Or should we just wait until our debt is, say, $60 trillion?

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irishmolly72 · 56-60, F

The idea of keynesianism was to run big deficits in times of recession and then run surpluses in the good times. This way the business cycle would be moderated and we could avoid the angst of recessions as well as excessive exuberance of boom times.

Why do we now run giant deficits even in the good times? Does it even matter? Republicans do it through tax cuts while Democrats do it through massive spending. Was Dick Cheney right? Deficits don't matter? Maybe we should not even have a debt ceiling? Just let the debt rip forever.

SomeMichGuy · M

@irishmolly72 You need to review economic facts.

Clinton balanced the budget and Obama reduced the deficit and debt.

Republicans complain about the deficit but always want to reduce revenue (and never account for wars & weapons).

whowasthatmaskedman · 70-79, M

@irishmolly72 You are correct about deficit spending being a function of Keysian economics, and with good reason. Those deficit programs are supposed to build infrastruture or capital works projects to enable a nation to expand is base while labor is plentiful. The Hoover dam or the national highway network being great examples from the Great Depression. No place anywhere does it say a deficit should be run to give tax breaks to anyone. In fact conventional wisdom is to raise taxes to help pay down the deficit.😷

irishmolly72 · 56-60, F

@SomeMichGuy I just want to fix one of your typos. "Clinton" should have been "Gingrich". No need to thank me.

Obama tried to nationalize healthcare. The republicans wouldn't let him, thank God.

irishmolly72 · 56-60, F

@whowasthatmaskedman The deficit has also proven to be a great tool for pushing the woke agenda (and calling it infrastructure).

SomeMichGuy · M

@irishmolly72

I just want to fix one of your typos. "Clinton" should have been "Gingrich". No need to thank me.

The budget process of the US begins with a proposal submitted by the President. Clinton made responsible choices as the starting point.

And important legislation is helped or hindered by the White House; the Executive helps shepherd bills.

Gingrich is part of why our system os broken.

And he wasn't Speaker during the entire Clinton Presidency.

No need to thank me for helping you understand facts easily known or looked up.

Obama tried to nationalize healthcare. The republicans wouldn't let him, thank God.

Keeping America STILL paying ≈TWICE what the *next*-most-expensive system costs, but NOT getting twice the healthcare.

If you think wasting our money like THAT is a great idea, you are part of the problem.

And yes, the Republicans live in a Universe where wars never seem to add to deficits or debts, but social pr9grams always do.

AGAIN: IF you want to better your financial position, why keep gettiing rid of income?

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irishmolly72 · 56-60, F

@SomeMichGuy Ouch! LMAO

Not worth a response.

SomeMichGuy · M

@irishmolly72

Not worth a response.

Then you failed at *that*, as well...

irishmolly72 · 56-60, F

@SomeMichGuy Kevin Hassett has an interesting idea. McCarthy should offer Democrats a deal: $3 in spending cuts for every $1 added to the debt ceiling.Can we agree?

SomeMichGuy · M

@irishmolly72 LMAO

There isn't a 1:1 ratio of dollars of debt to spending and part of why we need the IRS agents IS to go after people who not only are tax cheats on the annual bill, but tax cheats DURING the year (like a user here who filed an incorrect W-4 so he can keep more money, but doesn't pay estimated tax to keep up, so he is violating the IRC/reg's in at least 3 places...