Video není dostupné.
Omlouváme se.
How Biden Could Bypass Congress to Avoid a Default | WSJ
Vložit
- čas přidán 4. 08. 2024
- If Congress doesn’t raise the debt ceiling by early June, the U.S. could default on its debt for the first time in history. But there are three things President Biden could do without Congress to avoid a default.
They have been called “highly risky” and a “gimmick” by people like Federal Reserve Chair Jay Powell and Treasury Secretary Janet Yellen. But experts argue they’re worth looking at because they might be better than defaulting. President Biden is even seriously considering one of them.
WSJ explains how the trillion dollar coin, premium bonds and the 14th Amendment could be used to avoid a default.
0:00 The Debt Ceiling Debate
0:57 $1 Trillion Platinum Coin
2:37 Premium Bonds
4:41 14th Amendment
6:10 Discharge Petition
News Explainers
Some days the high-speed news cycle can bring more questions than answers. WSJ’s news explainers break down the day's biggest stories into bite-size pieces to help you make sense of the news.
#DebtCeiling #Default #WSJ
This reminds me of an old Onion video in which the US government faked a coup against itself and all the debt documents were accidentally "lost".
Onion news 😂they use to be so funny. They have lost a step over the years. Loved the voter machine Presidential election one.
Sounds legit at this point
I don't get it. They can't destroy the documents of the lenders so
@@brettnelson7518 czcams.com/video/TRgRz3nSG7o/video.html
@@brettnelson7518 for some context this is the video I was talking about
It’s important to remember that the debt ceiling is an arbitrary number set by politicians, and that any default at this point is entirely elective and a political decision, making it all the more ridiculous.
It’s not arbitrary though. It is literally equivalent to credit card debt. The conservative mindset is that they are not going to agree to increase the debit limit unless a plan to begin to reduce the debt is put in place, so they are holding out for these concessions.
@@Geitir It is arbitrary. The number is picked by politicians based on whatever they feel like picking and they just pick a number. When the GOP was discussing different numbers in their last bill they were debating the politics of a round number vs one that ended in 69 which they didn’t want to do because of the insinuation, etc. That’s the kind of process they use to arrive at this number. To use your credit card analogy, it’s like the bank issues a credit card with a $20,000 limit, you declare that your personal limit is $1,000, and you decide to default because you spend $1,500 because it’s over the personal limit that you chose to set which the bank was not party to. You will be in default because of your personal decision which had nothing to do with the bank, your credit will be wrecked, your interest rate will skyrocket, and the bank could actually impose a much lower limit because of your elective default or it could cancel your card altogether. There’s nothing responsible about choosing to default on the debt to make a political point.
@@boondoggle4820 It is responsible to use that default as a leverage against stupid spending that caused the debt crisis in the first place, if the democracts had not been so stupid in their spending then the celiing would have not been hit.
Ya so if i call my bank and tell them i cant pay off my credit card and just let me borrow more they will be cool with it?
@@davidardjevanidze8406 They would likely cancel your card, close your account, and sue you if you did that. The better question is why would you do that, and why would you elect to default when you can elect to pay what you promised and not have that happen?
Life is a weird, beautiful experience when you step back and look at it. Grateful to be here with you all, Working with a financial expert could truly set you up for life. I'm delighted I was able to contact my coach Rodger Michael Karl earlier this year because while others were busy whining about the downturn I was busy cashing out from my portfolio, finally making over 370k only for the first quarter. of the year.
Every family has that one person who will break the family's financial struggle, I always hoped I became the one, Rodger Michael Karl helped transformed my life, he has been amazing, and ever since I met him, my life has taken a positive turn because of the passive income through his knowledge..
Needed to see this today. Struggling with Finances for months now after my divorce, I just discovered his outstanding resume when I searched for his name on Google. I count it a blessing that I came across this comment section....
This thread is a crypto scam run by bots, ignore it
Maybe only competent people should be elected to Congress. This is the job of Congress, not the president’s or any other branch. Put the blame where it belongs.
On trump and his maga robots.
@@robertwheeler5125 no it's squarely on biden and the woke fascist snowflake shoulders
By the way it requires the president signature to be put into law.
@@robertwheeler5125 I laugh every time you lemmings keep blaming and pointing fingers
@@tioswift3676 isn't that the maga trash way ?
Tax code = Congress telling you you can have this much money
Budget = Congress telling you you must spend this much money
Debt ceiling = Congress telling you you can't borrow money to make up the difference
Huh? Then tax code is failing miserably unless “this much money” = $200B
It’s not all of congress! It’s the radical MAGAts in the house! Let’s put the blame where it goes! On the treacherous traitorous treasonous trumpets puppets and the MAGAts in congress!
Balance
Not that easy smh
What better to *spend* *to* *Marry* *also* *the* *thing* *you* *Marry* *ALSO* *SPENDS...* *TADAAAAAA* it comes with Debt/Degree *Also* *Refuse* *to* *work*
What better way to keep spending while also giving low wages and shuffling Amazon Employee?
I wonder if fed has enabled overdraft option. They could just charge a overdraft fee lol
How about overdraft protection? 🤗🤑
Good idea!😂
Y’all want to make America looking like Venezuela 🇻🇪, that’s not going to happen my liberal friends
Banks would charge the tax payers, collectively, $11T for their fee lol
If, it works go for it
"If money means nothing it will be chaos"
Money meaning something has brought chaos too....
If the clowns in Washington can't balance a budget, fire all of them.
Need to pass a law that no lawyer or lobbyist are allowed in our government or any lobbyist.
We will never balance our budget. Never have, never will. When you buy a house your budget is no longer balanced. But the equity in the property and the future value makes sense. The same way with the government. When government borrows to build a water project a rail system or a university, there is future value in those expenditures.
Where we fail is by building bombs, guns, & weapons systems. Once these are built they have zero future economic value. Boom and the bomb is gone. Its always back to guns versus butter. You can have one or the other but not both.
The debt ceiling isn’t part of any budget. It’s a needless and arbitrary pretense to argue that the government is overspending when in fact it has plenty of overhead for spending more if it needs to without incurring punishing interest rates. But the debt ceiling pretense allows Conservatives to spread fear about overspending, the same fear mongering they’ve been doing for decades despite it being Reagan in the 80s who unshackled debt expenses from all previous constraints of government spending.
@@Weaseltube thats true but debt is debt and with the trillions spent the interest will eat up the overhead leaving us with what more inflation and higher interest rates and no businesses. So lets have them send billion dollar checks to everyone if theres no limit on spending see how that works out. You cant spend your way out of bankruptcy period.
@@joedutton3413 There can be too much debt but some debt can be good if spent correctly. Any successful business or government runs on debt.
The focus should be waste, not debt.
The government needs to cut back on spending.
Yes, but this is not how you do it.
nah , no it doesn't.
@@flyingdragoncar4975 Typical lemming who wants to bankrupt the grandchildren of this nation
This has nothing to do with spending. Republicans put a trillion dollar tax cut on America's tab and now they don't want to pay it.
We could start by rolling back the 2017 tax cuts. Then we could cut the military budget by 10-25%. Finally, we start taxing wall street transactions by a few cents. This could eliminate our deficit without harming our economy.
Kevin McCarthy: “The buck stops elsewhere!”
yep... it's all on the democrats and schumer in the senate... why hasnt he brought the house bill up for a vote yet? because it would liely pass , thats why... mc carthy should not be negotiating anything until the senate either votes on the current house bill, or passes a bill of their own.
If the US defaulted, it would cost those politicians too much money. They make a big hulabaloo about it, but they'll never allow it to default.
Not so sure. They will do anything to get TRE45ON
back in power and this is a path they see. Also typical REPUBLICAN playbook, screw over middle and lower class for the
" American 1% Billionaires"
The U.S. defaulted twice already and it turned out to be a very good decision for USA.
3 seconds before the deadline they will make a deal
Hopefully
It always happen. Especially in this election cycle.
🤪 😜 are you sure?
@@bngr_bngr makes a lot of sense outside can literally do a promo package how either side was delaying the spending bill
Trump ordered House Republicans to not make a deal. So the question is, can five be found to disobey him, and even if five have that courage, can McCarthy be persuaded to allow a vote. All within a week.
A clean debt ceiling bill would be great - but we elect showmen over doers.
Need to allow reality in.
How many times is the news gonna take you down the same road of heart attack before you realize every single time we are in the same place and it gets done?
There are good options. Cut spending.
I like how cutting goverment spending and raising taxes wasn't one of the options
It’s called budget
That's something only Congress can do. If they could do that, then they could just raise the debt limit.
@@whysoserious1978 A budget can be adjusted - and the agency that uses it can be cut - Our Gov. is too big and too noisy
@@ultra_magaman8009 Or maybe not big enough? The IRS could surly use more workers to audit the taxes of multimillionaires and big cooperations. As you might know, they do not pay their fair share but use all kind of tricks to evade paying taxes as everybody else does. But IRS only has the resources to audit the average Joe because this is much easier than auditing huge opaque holding company constructs with offshore accounts. Btw, these are the same groups for which Trump cut the taxes, all the while everybody else who does real work (instead of living of the work of others) has to pay up.
Cutting government spending means no money for career-politicians.
Raising the taxes would make the voters to avoid career-politicians.
I’d love for my credit card company to keep increasing my limit every time I hit it 😂
I bet they'd love you also if you were to buy a lot of stuff with your current debt limit [note: this is true/rational meaning of "debt limit"], then say, "Sorry Chase VISA, I've exceeded the debt limit I set for myself, so anything over that I'm not paying. I get to keep the stuff; you're out the money." You'd be in court so fast your head would spin.
@@GlennRA3 A nation is only a collective of people..and the Government is only instituted to manage the collective. A portion of what they spend comes from my taxes, which involves me having to forego some things because I don't have the leverage to spend extra. What gives the Government the right to not be mindful of what it spends? I am not against government spending money, all I want is accountability, just like how it is done to you and me.
The debt limit isn't about new spending, it's about paying your bills
@@tesladrew2608 Partially true, imagine if you went out and bought a bunch of things with a credit card, and then when the bill came, you decided you didn't want to pay it.. That is what is happening now.. You should have not charged it in the first place.. but now you might have to return some things or sell some things you bought.. and also decide not to eat out in the next month so that you can afford to pay back. The answer is not to call the credit card company and ask them to increase the limit so that you don't default.
@@roryp7730 no. It's like having an unlimited credit limit and saying you won't spend more than 1k. Then you spend 1.5k and tell the bank you won't repay the 500 you spent over your arbitrary limit.
Wish I could just print a $10K coin or bill to pay off my credit card debt.
He should. GOP raised debt without cuts during Trump and both Bushes
The difference is that the DNC raises the debt limit without considering the fundamental currency of the Economy, Energy.
Trump had to deal with Speaker Pelosi for the 3rd debt ceiling increase. She held it hostage until she was able to get spending increases.
George W. Bush had to deal with a divided government the first 2 years in office. GOP controlled the House but Dems controlled the Senate. Then in Bush’s second term the House throughout gained control for the last 2 years and he had a divided government. GOP wasn’t in the bargaining seat for much of the time. When they were no one in Congress was questioning spending or asking for cuts since we were in the Afghanistan War and Iraq War. Military spending had to drastically increase.
Plus Trump did under a pandemic. Not just because he was taking taxes unlike this person in office
@@24killsequalMOAB Bullkakka... the Bush and dRumpf tax cuts are the reason the Debt is where it is.
The economy is taking a hit because of this fight, due to the uncertainty it creates.
Removing the Debt ceiling and honoring the US debt shows stability and is healthier for the economy, both ours and the worlds.
Every Democratic administration since Carter has lowered the Deficit, which would have then lowered the debt if the Republican administrations, ALL OF THEM, had not acted like children with an unlimited CC.
Just like they are doing now, since they are refusing to pay for the meal THEY ORDERED when they authorized the spending in the first place.
I have zero problem with negotiating a better, lower budget, but you do that BEFORE you order the meal, eat the meal, enjoy the meal... not after like the Republicans always try to do.
BTW - if it's all the DNC's fault.. why did the Republicans vote to raise the debt ceiling 3 times under dRumpf??? You know, the guy who is responsible for 80% of the debt???
@@24killsequalMOABElaborate???
We’ve already been here. Why are we talking about this like it’s some new, crazy issue?
We’re not going to default. It’s a game of chicken.
Cause many people in financial markets already know Chinese MSS has Leaders from both the sides in their pockets.
Biden can’t even remember what country he is in.
USA citizens need to turn off their TVs 😂
Facts! Just to make the stock market go crazy imo
Buy the rumors sell the news! Why do we have to suffer because these idiots can’t pay their bills with the money WE ALREADY GAVE THEM
At the end of the video, a process is mentioned that would take more than a month, and the expert says we don't have more than a month. Ok, how about you work on that for next year, or the next cycle, or for the next time?
I don't understand the "we don't have time" argument. Also, it is not encouraging when multiple experts say the 'only' solution is to raise the debt limit. Ok, for how long? Infinitely do that till the end of time?
I heard one politician say the debt could be paid within a decade or two if they adjusted/added some penny to the dollar of government expenses towards paying for the debt. I want more people to talk about a solution to the debt and not keep raising it- even if the solution takes decades to resolve so people won't feel a sudden pinch.
Why don't they mentioned we've already minted trillion dollar coins? This isn't a new idea.
The best outcome is to fire a whole lot of the house…
he could stop spending like a drunk sailor...there's that
You are referring to when Trump gave billionaires the Trillion dollar tax cut?
Good point, since he is responsible (with only one 4 yr term) for 1/3 of our our national debt!
This insane stuff started when Trump cut and protected Billionaires and business with huge tax cuts....and now Gop wants to starve children in low income households what a shame
@@charlie-obrien dont forget that nancy pelosi was speaker for two of those years, and pelosi during her two terms as speaker, increased the debt more than any one else ever had...
Congress decides the budget, not the president. It's kinda funny since Congress also decides the debt ceiling. And then they act shocked *shocked* that the president would spend this money that Congress legally required him to spend.
The debt ceiling should be thrown out with the garbage. The use of the debt ceiling as political blackmail will never stops along as is a thing. Instead it the debt limit should be used as a trigger mechanism to lower government spending. Specifically corporate handouts at the military.
What If money is no wasted on war?
The strength of US dollar depends on strength of US to win wars.
Ask the gG O P THAT QUESTION
Or.... and I'm just slinging from the hip here, Congress could just reduce spending from various programs, and pay its obligations on time.... you know, like the rest of us.
If they hit the debt ceiling then all that would happen is the discretionary spending would get cut to make up the difference. Mandatory spending like medicare would still go through.
I really like to first option to mint a coin valued at $1 Trillions. In fact, I have a better idea, why not up the ante and to coin three of them. That way the politicians can concentrate on doing something really meaningful for the US and not have to worry about the debt ceiling for the next three years.
On second thought, why bother with minting a coin, just write a note with $1Trillion on it?
The trillion dollar coin sounds like a plan devised by Dr. Evil, LoL
Besides, they have tax revenue coming in it’s not in dire need to get this debt ceiling taken care of. She keeps pushing it back week after week. I have heard some people say that we have until September because of the tax revenue coming in so don’t fall for it.
I'd also like to point out that if fighting is smart to the second Congress goes on vacation and before the pro forma session can be performed. He can call her version see session of Congress enforce them to remain in the capital and in the Capitol building until they have negotiated the debt ceiling or voted to raise it.
This is an unreasonable and untenable situation, principally, because people are unwilling to bargain in good faith. If the debt shall not be questioned, why the horse and donkey show? Pay the debt first, then, immediately move to negotiations to cut the federal budget for the next cycle. One Republican said they would blow up the process, if they don't get their way, and that is unacceptable. Anyone who engages in such a practice, salary shall be withheld and removed from office. Next, replace them with their governor or hold a special election. These people took an oath to uphold the Constitution and there could be some who are not acting according to their lawful oath.
The whole "cut the budget" is a load of nonsense, though a cut in the defense budget would be desirable. It is ridiculous that the Dems aren't talking about repealing the Bush and Trump tax cuts, which is why the deficit and national debt is out of control.
A official that would dam the whole nation for something so petty is a traitor to this country. Honestly if we wanna pressure politicians we should be out protesting, demanding the limit gets raised.
If they don’t wanna work and do our jobs why should we. They got a lot more to lose after all then the average American
@@Don-md6wn No it's not. The debt is out of control because of Democrat give away programs resulting in U.S. spending more than they take in. This is simple arithmetic. Don't spend money you don't have.
No one ever reduces the budget. Raising the debt ceiling expecting reasonable budget negotiations later is fooling themselves…let it default. Lets rip off the bandaid, suffer now and let the system reset.
@@Don-md6wn YOU THINK REPUBLICANS WILL GO FOR THAT HAHAHAHA
Question: If politicians can't spend our money freely, how could they possibly keep buying votes?
With the money the people donate...they actually live on it
WHY IS MCCARTHY TALKING TO PRESIDENT WHO HAS NO LEGAL AUTHORITY ON SPENDING.
A trillion dollar coin?
I hear twilight zone music!
14th 😊 I don't see in the Constitution where the Congress has the power to default, only to collect the money and pay the debt. That is why the 14th Amendment was needed, to clarify the Constitutional obligation to pay the country's debts. Whether the debt ceiling is Constitutional or not, it is redundant in its intended purpose, that being to control expenditures, because that is already Congress' job when it enacts the laws that create the debt.
actually, the 14th Amendment was passed in the wake of the Civil War so all the unpaid bills from that struggle would get paid, and no one could doubt the value of America's money.
The issue is the definition of "the Country's debts" and what exactly is compelled under the Amendment. Not all Democrat giveaway spending is covered by the Amendment. Running the government generally is. This is a Biden only issue. He is yelling about not being able to cover debts that he is required by law to cover, when he can do so very easily by NOT spending money on other items.
@@johnnyulster5637 you have no idea what you are talking about, that much is clear
@@johnnyulster5637 democratic giveaway? 😂 . You mean 1.4 trillion infra spending, 2 trillion rescue package which saved the @$$es of millions of Americans , or green energy subsidy which has made America a leader in renewable energy
@@johnnyulster5637 you mean Trump's multiple COVID giveaways?
The segment on the coin was basically just some people saying “no that’s silly”
All of this is silly and letting the country default is even sillier
Why is he winking for the picture? 😆
recall the TAX BREAKS
Wouldn’t using the 14th be something that needed to be done earlier? Like in January? Since I can totally see the GOP sue to hold it up in court.
This is pure nonsense. Trillion dollar coin?
The 14th amendment says that the validity of the public debt shall not be questioned; it absolutely does not give the executive the right to increase the debt ceiling in order to finance more debt.
DEFAULT...it will hit the RICH WAY MORE......
Default will only makes the poor & middle income suffers! Rich still enjoy their lives!
You would starve to death before their dogs would notice a change.
Why doesn't the president just issue an executive order telling the Treasury to ignore the debt ceiling bill. Congress would have to take this to the supreme court to challenge it and the president could cite the 14th amendment as his justification. In the mean time, we avoid a default.
Or..........................get this...........................actually cut spending. Welfare should be a helping hand and not a lifestyle. Military spending needs to be looked at with all the waste. Government spending is a joke.
Will not work, the Federal Reserve need to buy in to that too & they most absolutely won't. That because the US gov general account (its the USA equivalent of its chequing account) is held in the Federal Reserve. The actual money has to be found somewhere, if Treasury has no monies (like tax revenue receipts or funds from sale of treasuries T bills/notes/bonds, fines, sales of oil/gas drilling lease) to put into the kitty (general account in the Fed) then Biden executive order be useless. Because even if the Treasury ignores the House, the reality is the checking account is empty.There need be money to fill the general account from slomewhere. Sales of leases, tax receipt revenues, plunder from war or other activities like letters of marque, excise & duties, fines & sale of treasuries T bills/notes & bonds. That be the US general sources of revenue.
Biden doesn’t have the Constitutional authority to sign an EO to tell the Treasury to ignore a law passed by Congress.
Biden will lose at SCOTUS trying to use the 14th A. That was passed regarding the debt from the Civil War. It was to acknowledge the debt accrued by the Union would be honored by the debt by the Confederacy wouldn’t be repaid. Also everyone is ignoring Section 5 of the 14th A which clearly states Congress shall pass the laws controlling this amendment.
That overlooked section of the 14th A keeps the debt still under the control of the House which is clearly outlined in Article 1 Section 8 Clause 1 which says the power of the purse is in the House and is why all spending bills must start in the House.
This video has misinformation and lacking context. It claims Social Security Medicare would be affected by a default. That’s not true. That money is mandatory spending and is paid out of a trust fund. Neither of those benefits are part of the debt ceiling borrowing.
Lastly, the IRS receives more revenue than the amount of the monthly debt payments. They can still be paid without raising the debt ceiling. This is another reason why Biden would lose at the SC. There is enough money to service the debt without having the Treasury disregard the debt ceiling.
The need to raise the debt ceiling is so the Treasury can continue borrowing to pay for the ridiculous discretionary overspending the government has done like expanding Obamacare subsidies, money to Ukraine for the war, foreign aid, NIH grants for studies (which are often frivolous like the study to see which moves faster a dead turtle or an alive turtle or effects of cocaine on love birds) and so many other government programs. Invoking the 14A to spend on daily government functions from Biden’s $6.8T budget for 2023 is not a reason to use the 14th A. That isn’t existing debt. That’s spending Biden wants to continue.
The Treasury can ignore the debt ceiling but who would trust the bonds it issues? Maybe courts will hold them invalid. There's no way to issue safe bonds without Congress approving of them.
@@kevinyaucheekin1319 they can borrow more money like they normally would
When anyone such as these speaking to us are saying there's only ONE solution to this madness, you must automatically assume thats preverication
I remember the Orion news network suggesting ideas such as pretending to be canada or burning down the country for the insurance Money
GOP acting like debt ceiling is a democrat problem when they themselves are responsible for more raised debt ceiling than Dems in US history.😂
funny, dem presidents and full congresses started all our broken social programs....
Hmm, prove it.
Blank statements like yours are moronic and fall in line with everything the democrats do right?
Democrats are bigger Spenders
@@Henry-xu5jg Republicans raised it 30 more times then democrats , and they had the WHITE HOUSE more years in last 70 yrs .
@@Henry-xu5jg literally false if you look at any actual numbers lol. Budget deficits under GOP Presidents have been $4 trillion more than under Democratic Presidents since WW2.
There is another way. Biden could simply choose to uphold the law. First, default is unconstitutional in the 14th amendment and the Supreme Court Perry decision. Importantly, congress has the authority to lay taxes, borrow money, and pass legislation. The President has the responsibility to uphold the law. Legislation passed by a majority vote in congress signed by the President, including past Presidents, is lawful spending authorization and "valid" debt. It must be paid and "shall not be questioned."
McCarthy's Limit Save Grow bill is not law not having passed the Senate, so ignoring it is not unlawful. Forcing a default puts the President in the untenable position requiring him to break the laws already passed by congress and to pick and choose which legislation or debt gets paid using the unconstitutional line item veto he does not have. He must choose to uphold the law and pay our bills with the backing of the law itself, 14th amendment, and the Perry decision. The President cannot be forced to break the law.
Fortunately, we may know something sooner than we think. Government employees are the plaintiff in a case before the Supreme Court alleging harm and that default is unconstitutional. Recently they filed for an emergency ruling on the unconstitutional line item veto the President Biden does not have because it gives the President too much power. However, the President must effectively use it to determine what bills get paid and those that won't. The only path forward is to uphold the law and pay all bills.
Surely your not saying XiBiden follows the laws of this country. Hes a traitor period no ands if or buts about it that goes for the majority of the Democrat Communist Party.
So when does this issue if the debt get resolved?
@@EagleZoo Hard to say, but before we run out of money. Since January, the Treasury has using "extraordinary measures" authorized by congress. Among other things, those measures allows the Treasury to redeem US bonds saved government employee retirement account. After the impasse, they are required by law to be made whole.
The government employees are the plaintiff in a case against Pres Biden and Sec Yellen before the supreme court citing harm and default is unconstitutional. This is not political, they are defendants because they are responsible for upholding lawful legislation.
They recently filed an injunction citing the debt ceiling will require the president to break the law by not funding lawful debt obligations and arguing the President cannot do that because a line item veto is also unconstitutional.
So, we may know something if any of this is resolved before the X date.
Don't be fooled. The country will not default. All income to the govt. does not cease on June 1. It still brings in trillions and obligations can be paid from that income.
The problem is that US can service its debt but they can't continue their stupid spending on biden's stupid fantasy because they can't borrow anymore.
How is the platinum coin even presented as a serious option?
Let them know they cannot hold the government hostage. Nor expect to pass ANYTHING.
Who's ready for a default
I'm really liking that coin idea. How many times can we do that? Could we wipe out all of our debt with magic coins?
The magical coins created by surreptitiously feeding unicorns the blood of virgins are especially powerful. 😁
You would crash the dollar
Legally, yes, the problem is that if you keep spending after you've used the coin then that money would circulate in the economy and it may be difficult for the Fed to control inflation. However, in practice, if that ever happened the Fed would likely charge interest on reserves instead and so, in practice, the Fed would borrow the money rather than the treasury borrowing the money... so in the end the Government would be borrowing it either way.
Pretty sure it's like printing out large amounts of money . If the small increases to the inflation is already alot, then the sky high Inflation would destroy the world,
Hope you like hyperinflation
What about new revenue due June 15? So a short default?
Exactly. There wil be no default.
The depth is just a illusion but we’re not ready here this yet
The very same people that passed the spending bills to cause the massive debt are now complaining as if this debt issue was unjustly thrust upon them to deal with. You've maxed all your credit cards and now you're crying that you can't buy a new iPhone, because your current iPhone is 6 months old.
The debt has accumulated for centuries, and today’s debt consists of many obligations that were undertaken by congress decades ago, with the sharpest rise beginning in the Reagan years. So no, it’s not the same people.
Also the credit cards are nowhere near maxed out. The debt ceiling is self-imposed by congress for no reason except to alarm voters on a regurlarly scheduled basis into believing the government is overspending when it isn’t.
@@Weaseltube when we are spending 150 times more than our gdp... cuts need to be made... republicans in the house have already passed a bill to raise the debt ceiling... but schumer and the dems refuse to bring it up for a vote in the senate... because they fear it will pass.
How many votes does it take to get it through the congress? I did some research but it's rather hard to get a clear statement what exactly it needs to "pass congress". Anyone knows?
Just basically needs an agreement that the MAGA wing of the Republican Party is willing to accept. They basically hold power over McCarthy and in turn the entire congress.
5 republicans votes are needed in the house but we saw what happened to Liz Cheney when you don't fall in line so its easier said then done.
@@elroyla227 a bill has already passed the house and republicans could pass a bill in the senate if uncle Festerman and Feinstein were taken off life support and didn't have people doing what their brains and bodies are arguably incapable of.
@@jamesbrown1645 Yeah, in the current atmosphere five votes is a lot. Under different circumstances, five votes over the aisle shouldn't be such a big deal. Thanks for answering!
@@elroyla227 Heres another dunce that has no idea what MAGA stands for lol
Just ignore the validated by law on the 14th….
and if he does any of those things you can count on a civil war.
The usual theater to give voters a show.
Would be so much easier if we had a budget.
a bill has already passed in the house to raise the debt limit... why hasnt schumer and the dems brought it up for a vote in the senate, or created a senate bill of their own that can pass? the republican bill just puts spending limits back to 2022 levels, before the onmibus was passed.
Use the 14th Amendment. Issue an executive order, and let the GOP suck it up.
That would get challenged in the Supreme Court and they would run out of time. It’s too lays to use the 14th amendment
you could pay your debts but you still couldn't buy anything or rent hotel rooms for illegals or pay for new projects, the new green deal, or give money to Zelenski.
That would be bad thing to do. You would set a precendce that would have disastrous results in the long run.
@@neilkratzer3182 why? does allowing one party to hold *the entire American economy* hostage sound like a great alternative to you?
The dems are the ones who didn’t raise it before lol there fault also Biden always compromises his that’s what the dems do
how does it affect people if USA defaults - everybody just says "ooooh no, its really bad" and its starting to sound like, THE SKY IS FALLING, THE SKY IS FALLING. But seriously, how does it directly affect me or you, or any people in general??? So what if we default?
This is so BS , it’s party politics over common sense and country at this point ridiculous.
An here I am trying to pay off my Debt 😂
Let's, go fishing every day.
This is what a dictator would do instead of working within the system with the people who were voted into office by the people.
Stop giving all our money away and return money to social security that was borrowed.
Just interpret documents how ever you want to fit what you want to do. Least likely option. I would call it the norm.
Why can't the congress just do their job?!! This stuff is pathetic!! It is a train wreck that Nixon started by dumping the gold standard!!
I’ll tell you why cause there greedy the person that becomes rich ones more and more and yet we keep this people in power
They could go around congress by cut government spending ?
Cut the GOP'S salaries, lifetime medical, and their pensions first. And tax the billionaire corporation's and cut their Corporate Welfare subsidies and make them pay their fair share of taxes, instead of the American people subsidizing their lifestyle out of our broken backs and wallets!!
@@Chulitatr Do it for all politician and I am in
Cut DoD, SS, Medicare = 80% of spending
It cant interpreted debt ceiling is illegal.. That thing means.." You have a valid debt that has to be pay and not be question".. And that means to " you must pay the debt and not to reconstruct any debt".. Debt ceiling is the tool to make your debt not too much high..
That would be horrible.
The 14th amendment should be adjudicated and the debt limit should be found to be unconstitutional and nonsensical. It makes no sense, because congress already authorized the spending when they passed the budget. There is absolutely no reason that spending should be voted on again. Any concessions that the opposition party wants, they should get when negotiating the budget. This brinkmanship with the US economy is foolish and dangerous.
Congress already acted to raise the debt ceiling. It's now up to the Senate and pResident to get off their stubborn butts and deal with it. The people spoke in the 2022 midterm elections. Elections have consequences.
That bill cuts funding for veterans by 18 percent.
do you negotiate with hostage takers? Cuz that's what this is. House bill is "gimme gimme gimme, or else I tank the economy and ill blame you when I don't get my way"
@@VoodooV1 Surprise, Surprise... That's the way a bicameral legislature works. The DemTurds have been cramming bills thru for two years without any input or negotiating with Repubs. Turnabout sucks doesn't it?
They made do it! Idgac I’m not using the bathroom outside
Why dont we pay down the debt instead of adding to it?
Just wondering
The banks recieving bailouts in past economic trageties, should step up and loan in accordance.
It's not that banks won't lend, or that investors won't lend. It's the congress not letting the government borrow, which is the entire point of this video
????
Look at these dinosaurs running our country.
Platinum coin all the way! Hey, they want to play around, let's play! Pres. Joe, members of the Cabinet, the U.S. Congress right now needs a good kickin'in the behind.
Since they all eook the oath to the Constitution, why not honor their oaths by obeying Section 4 of the 14th Amendment. Maybe that's too difficult a concept for them or perhaps they are just not used to performing their duties leaglly or honestly. Janet, in particular, needs to be kicked out forthwith.
The only good outcome is to not spend more than you earn...duhh
So what would you cut out of the budget?
@@mrcmid9132social security, Medicare and military? 🤷♂️
ALL GOP PRESIDENTS ALWAYS SPEND TONS MORE LEAVE WH IN MORE DEBT THAN WHEN THEY CAME INTO WH MFERS GREEEEED 1ST
@@mrcmid9132 a lot
@@jumbomuffin1316 SS is not in the budget, that's why it will not stop on the first
printing more money is mostly how we got into this situation. it doesn't matter what you print it on. pardon me sir, do you have change for a trillion?
It's more like spending money you don't have with a promise to pay it later with interest. The "I don't have 20$ but let me "spend", spending usually equates to an exchange of goods, 20$ and ill pay you 25$ later." Then when later arrives you do it all over again. So you've spent 40$ but owe 50$, and it just compounds that way. That's inflation. What is worse those goods were acquired by some means of value, making that value unpaid as well. If I spent 5$ of my own to create that 20$ valued goods and I do not get compensated, only promises of such, there is money in but debt out. That becomes a bigger problem as a whole.
For one thing you stop paying all federal civil and public service hold up their salaries see how they like it
This is debt that the US is already obligated to pay. Defaulting on the debt proves no point and only serves to significantly weaken the US's credibility and position on the world stage.
Could be a humbling outcome
why did this video autoplay?
im not even American lol
Make a trillion dollar coin and everyone's real money becomes valueless immediately. Horrible idea.
Not a Yank, Singaporean. Putin thinks its a brilliant idea.
There's a Fourth option in the form of a Domestic Debt Forgiveness Act. Most of the Debt is owed to the U.S Public Ex Social Security and other agencies/ programs/ Companies and the Federal Reserve through Intargovernmental debt. The President or Congress could offer the U.S Public & Corporation a debt forgiveness package, and if except by the public & Corporation would allow the government to service/ clear an agreed upon amount of debt from its books.
The real option here is for the president and democrats to accept the very reasonable recently passed House Debt Ceiling increase of 1.5T dolla plus saving with reduced spending. A recent "CNN Poll: 60% say debt ceiling increase should come with spending cuts". Higher numbers for independants also agree. The President's default option has disaster written all over it for the Democrats.
500 billion in tax revenue is on the way for Jun. They have plenty of money! The only way government defaults is if people stop paying their taxes. Maybe that's what needs to happen.
Cut the GOP'S salaries, lifetime medical, and their pensions first. And tax the billionaire corporation's and cut their Corporate Welfare subsidies and make them pay their fair share of taxes, instead of the American people subsidizing their lifestyle out of our broken backs and wallets!!
And dnce's
Just cut the budget. Stop sending money to Ukraine and countries around the globe.
I think you meant to say cut all politicians salary and limit the power of the federal government?
Can’t cut anything for GOP members of Congress. Pay is decided by the 27th A and can only be changed at a specific time. It applies to all members.
No member of Congress gets free lifetime medical benefits. Members of Congress pay for their healthcare.
Congressional pensions are paid into by the member of Congress from their first day in office. They are vested after 6 years. If a Representative fails to be reelected after his/her first term they don’t get to collect a pension at retirement age. You can’t withhold a person from getting access to their own money.
Also, your plan has other problems for those members who have been in Congress a long time and are getting close to retirement age. No member of Congress pays into Social Security because they aren’t allowed to collect Social Security. It’s why the pension exists.
I bet you’re one of the ones who screeches about Social Security can’t be ended, I paid into it and it’s my money but that’s exactly what you want to be done to GOP pensions. Figures a Democrat has double standards.
@@powerToYourself36 Congress salary is $174,000/year and they haven’t had a raise since 2009.
Could you maintain 2 homes and raise a family on $174,000 per year? I bet you have had a raise in the past 14 years too. So what would you like the salary cut to and how do member’s survive? Should they take on part-time jobs?
We can’t just keep on spending what we don’t have! This is unsustainable 🤦🏾♂️ 🤦🏾♂️ how do the so called experts not see this!
So cut DoD, SS and Medicare
So what would you cut out of the budget?
It's actually a little different with national finances. The Government budget acts a little but more like a bank where as long as the money the bank/Government lends/spends out creates more growth than the money spent it's fine.
So it's better to think of it as: the economy grows every year (hopefully) and so there has to be a bit more money going into the system than the year before. This money comes either through lending to private companies and people or lending to the government. The lending itself is fine as long as it's the right size of lending but lending to governments has a lot of stability while private lending has a lot of dynamism. You need a mix of both to get a vibrant economy without big booms and busts.
So it's not "spending money we don't have" it's gradually and slowly investing in the future. Just like a bank lending to a business to build a new factory. It's mostly good.
@Stephen Richmond yeah but the biggest problem with wall street and government politicians is greed. This is why the country is screwed up. Someone will steal money and mess the system up while blaming someone else.
@@mrcmid9132thier massive salaries and massive life pensions they live like kings and won't even consider that. How about the pay thier share of taxes they don't pay anything and they get paid too much to talk and do nothing then go ahead and buy a 1000 dollar meal this is ridiculous.
Circumventing the law is the new federal government pass time.
First Silly Con Bank can issue a credit card with no spending limits?
6 hours researching can't find any proof Executive Branch President has authority on Spending Clause in Constitution
It’s all Democratic/Biden communist dictator Rules
The correct outcome is to destroy the debt ceiling law.
Yes Biden avoid guiding us into a financial emergency!
CALL THE BLUFF
Stay tuned.
This is the weirdest take on the 14th amendment. Yes it does say the validity of the public debt shall not be questioned, but they completely skip over the verbiage in the middle of that passage… “authorized by law”. Only public debt authorized by law shall not be questioned.
yes, especially since the house has already passed a bill to raise the debt ceiling.....
@@robertcoyner1530 ...with the provision that veterans benefits be cut. Why are veterans being held hostage?
@@VoodooV1 how will veteran benefits be cut, if we are returning to 2022 spending limits? same goes for S.S. and medicare.. there wont be any cuts... mostly what will be cut are the wasteful tings that were in the omnibus bill that dems pushed through... just alot of dem fear porn being pushed by dems and msm.
Very excited to see the many uneducated Americans who never follow politics/ news discuss how we “just need to stop spending”
there is no good outcome for stocks, they default and $spy sells to $390 or they make a deal, print and sell bonds, $spy sells to $400
McConell says there will be no default