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View Full Version : Democrats Plot Debt Ceiling Fight And Government Shut Down To Thwart Trump Tax Cuts




Swordsmyth
06-05-2017, 11:50 PM
Ironically, efforts to use the debt ceiling as leverage could, presumably for the first time ever, partially align the interests of Democrats with the most conservative voices in Congress, many of whom would have no problem shutting down the federal government for a while. After being singled out and blamed for the last government shutdown in 2013, the House Freedom Caucus undoubtedly welcomes Pelosi's sudden support.



Already, members of the House Freedom Caucus have said they will push for spending cuts in this year’s debt-ceiling debate in exchange for their support. On Friday, President Donald Trump’s chief economic adviser, Gary Cohn, said the White House would consider spending cuts or policy changes favored by Republicans in order to avert an unprecedented default. That appears to align him with White House budget director Mick Mulvaney, but against Treasury Secretary Steve Mnuchin, who has called on Congress to pass a “clean” debt-ceiling hike.

“Treasury secretary would love to do a clean debt ceiling -- I get that. But if we need to get things attached to get it through, we’ll attach things,” Cohn said on CNBC.

Several conservative groups met at the White House last week to discuss a strategy. Ideas they discussed included caps on mandatory programs such as Social Security and Medicare, extending automatic across-the-board spending cuts and matching any debt-limit increase with spending cuts, according to two participants in the meeting.

Republicans in both chambers are seeking to draft and approve a tax-cut package this year that would lower individual and corporate tax rates, although no proposal has been circulated yet. Several leaders, including Senate Majority Leader Mitch McConnell, have said they want any tax overhaul to be revenue-neutral. But Trump has repeatedly promised large cuts.
http://www.zerohedge.com/news/2017-06-05/pelosi-debt-ceiling




BRING IT ON!!!!!!!!

timosman
06-05-2017, 11:53 PM
https://cdn.meme.am/cache/images/folder757/600x600/16123757/vladimir-putin-eating-popcorn.jpg

Zippyjuan
06-06-2017, 01:52 PM
They have until October to deal with it. Don't expect much to happen until then. Trump says he wants something by August.

Swordsmyth
06-09-2017, 08:07 PM
Pelosi Was Just Confused Last Week; She's Now In Favor Of "Clean Debt Ceiling Increase"
http://www.zerohedge.com/news/2017-06-09/pelosi-was-just-confused-last-week-shes-now-favor-clean-debt-ceiling-increase

timosman
06-09-2017, 08:14 PM
This show sucks.;)

r3volution 3.0
06-09-2017, 10:27 PM
More likely that Dems join Trumpites to pass a "clean" budget over the objections of libertarians/conservatives.

CPUd
06-09-2017, 10:41 PM
https://www.youtube.com/watch?v=18IsZ5VRMvM

r3volution 3.0
06-09-2017, 11:06 PM
And then people'll have more money, and who doesn't like money, right?

And they'll say "Don, Don, please we can't take it anymore, we can't take all this money."

It'll be really really great and terrific, believe me.

AZJoe
01-04-2018, 08:05 AM
From David Stockman (https://www.lewrockwell.com/2018/01/david-stockman/unhinged-part-1-the-gops-fiscal-madness/) -

"Washington has become so dysfunctional that the most powerful government on earth can’t seem to keep its doors open for more than a few weeks at a time."


MORE (https://www.lewrockwell.com/2018/01/david-stockman/unhinged-part-1-the-gops-fiscal-madness/):

The next continuing resolution (CR) deadline is January 19 and the route thereto resembles nothing less than kick-the-can-alley. It’s strewn with $100 billion of unfunded disaster aid, defense and nondefense sequester caps fixing to be busted by another $100 billion …

Likewise, the casino gamblers on Wall Street complacently attempt to tag another record at 2700 on the S&P 500. Yet that would represent a nosebleed 25X LTM earnings heading into a bond market rout that is certain to result from soaring treasury issuance and the Fed’s impending bond dump-a-thon.

Worse still, the Donald insouciantly unleashes tweet storms about the alleged Trumpian boom when the next recession is statistically just around the corner. …

But when it comes to Unhinged, nothing tops the GOP’s disgraceful plunge into fiscal turpitude. The once and former party of fiscal rectitude and a constitutionally required balanced budget has unleashed a torrent of red ink, which under the circumstances, makes Barack Obama’s profligacy pale by comparison. …

piling $800 billion of “shovel unready” stimulus on the recession-bloated Federal deficit in 2009 was bad enough. But 108 months on from the Obama Stimulus with the official unemployment rate at 4.1%, a huge discretionary leap into more red ink borders on madness. …

Yet the Trumpian-GOP has thrown every shred of fiscal rectitude to the winds at the absolute worse time in modern history. … upwards of $200 billion in add-ons for defense, disaster relief, ObamaCare insurance bailouts, border control, veterans and law enforcement will drive spending to nearly $4.6 trillion or 20% above Obama’s outgoing budget of $3.85 trillion (FY 2016).

That’s right. These GOP clowns have left Big Spending Barry in the dust, and that’s before they get around to auctioning off votes for what the Donald is now flogging as a “bipartisan” infrastructure bill. The latter will add hundreds of billions more to the borrowing tab. …

In short, what was already a structural deficit of $700 billion will erupt into new debt issuance of $1.2 trillion—-and perhaps well beyond that figure—-commencing in October. At that very time, of course, the Fed will be dumping old bonds into the market at a $600 billion annual rate. …

the perfunctory Congressional debt on a bill that had no hearings and had not been read by the overwhelming majority of legislators when it was jammed through on Christmas Eve.

And that’s why we describe the GOP’s fiscal policy—among others—as unhinged rather than merely reckless or hypocritical. That is, Imperial Washington has been house-trained for so long by central bank money printing that it has no clue that it has actually participated in a giant financial fraud. …

the Fed balance sheet at the turn of the century was only $500 billion, meaning that in round terms upwards of $4 trillion of public debt has been monetized during the course of this century. …

the GOP doesn’t even recognize the evil of present-day central banking and is so confused on the topic that its “low interest man” in the Oval Office chose an outright Keynesian statist and crony capitalist larcenist, Jerome Powell, as the next Fed Chairman. Worse still, the Congressional GOP leaders persuaded the clueless Trump to also nominate Professor Marvin Goodfriend, … for crying out loud, Goodfriend wants to abolish cash … so that the Fed can impose negative interest rates … That’s right. This whack job devotee of Milton Friedman wants to confiscate the liquid assets of savers if they fail to borrow and spend at the rate decreed by the monetary politburo …

So yes, when it comes to the state’s destructive propensity to borrow and print money, the GOP has simply become: Unhinged! …

the GOP tax bill and spending spree—when piled on top of the inherited baseline deficits—will result in nearly a $27 trillion public debt by the end of FY 2022 or more than 120% of GDP. And that assumes that the current business cycle does not roll-over from record old age and the crunch of soaring debt yields on an economy saddled with $67 trillion of public and private debt at this very moment.

More importantly, it ignores the demographic-fiscal time bomb of the retiring baby-boom. … FY 2022 when combined spending for baby boomers (including much of Medicaid which goes to the poor elderly and nursing home care) will exceed $2.5 trillion or 63% of total Federal revenues …


By early in the 2030s, the number of OASDI beneficiaries will reach 95 million compared to 60 million at present, and then climb steadily higher …
Moreover, the recent announcement by the Great Fiscal Fake who presides over the US House of Representatives, Paul Ryan, that the GOP will now turn to spending control and welfare reform is truly laughable. The $70 billion extra they are pumping down the Pentagon rat-hole this year is equal to the entire cost of the Food Stamp program and exceeds spending on family assistance by more than 2X.

Indeed, the heart of the $700 billion means-tested “welfare budget” is Medicaid ($430 billion) and the earned income, child care and similar tax credits. But the GOP has already punted entirely on the former during its failed attempt to repeal and replace ObamaCare and it has added tens of billions to the latter …

Moreover, the resulting rampant Russophobia means that the War Party is more ensconced in power than ever before. That is to say, the ultimate threat to domestic peace and prosperity is a $1 trillion annual Warfare State budget that is both utterly unnecessary based on the real facts of the world, and which was utterly unaffordable—even before the outbreak of the GOP’s latest bout of fiscal madness