The debt ceiling crisis explained

[jeffsiegwart]

Thank for clarifying a confusing aspect!

[TomJerry-izye]

I cut and copy and pasting a part of a news article about how raising the debt ceiling every year if they choose to or not to how much money the taxpayers which includes people working people that owned businesses the one the explanation that I look for and read and try to visualize their explanation on how this raising the debt ceiling and not raising it and lowering it and if I'm seeing things correctly as their explaining they're saying that they're going to be given a budget and they have to speak to that much by breaking that budget I believe there's and fees within Congress and having to deal with that I don't believe they want to but that is a good idea now they'll be forced to really implement the important ideas for the economy to be re-established and rebuilt that they just keep taking money out to keep Congress open and fighting and then still come up with no solution and we're still defaulting at the end raising inflation property taxes so they cut out school and certain medical and the elders are suffering mental and handicap deficiencies are all now having to change and be cut out well the Democrats from what I'm reading and seeing have no worry because of their pain and their job being secured that when it comes to affinity year they're able to take out the loan and be able to continue to work while the rest of the world will either have to foreclose lose their businesses and doubt they raise our taxes and now we're the ones paying it back for their lack of not coming to a understanding to raise the deficit every year if it's necessary and in ten years this is what we save and I cut out and paste if I'm looking at it correctlyAnd now, well, now we have solved the debt crisis. We have passed historic legislation that would create $4.8 trillion in savings over the next ten years. It's over in the Senate, and they should pass it. Put it into law so we can move on to the appropriations process, which we're doing now anyway, and keep government moving."4.8 trillion in 10 years is a lot of money they're probably could be more but we would have to cut out government programs not programs that help people that need help to live off of social security and certain disability benefits that only get eight hundred to $1, 400 a month and cost 1800 did you got electricity food and how are we supposed to live off of income that people have work for or is in need of assistance like the mentally Disturbed the mentally the handicap better education for our full well our political party or too busy arguing about their deficit to say and be able to spend as they please there needs to be a for them to spend and get us back on track as soon as this is why we focus on America first what we're focusing on the rest of the world we are in that because we're too busy trying to please other and help them that when it comes in return where is the help then to help us back so everything should come to this and I do like that they want to raise it or they don't have to because there can't be more safe to it's a matter of coming to our Congress and President stop being greedy an awful now start taking a cut the way by example if I'm looking and reading everything correctly is this how it works

[OGCAMG]

What happens at catastrophic default. It is obviously coming to our nation 🔜

[aof]

It's simple, the Govt. is spending more than it is taking in.

[PeterProf]

There are many economists who believe that adding to our debt is not a crisis. But they are ignoring certain consequences to the economy that are important that hurt working class and middle class people. Our debt does not have to be paid back. We only roll it over and pay the interest. So, indeed it can increase forever. Politicians know that, and they also know the debt ceiling WILL be raised, so they are not concerned about borrowing more money and they are not concerned about high interest rates because they know the Fed can and will print more money. This scenario has been going on full steam ahead since 2000. The Fed printing money makes our monetary supply open not closed. Open means that the money supply expands. In the 19th century, except for commercial fraction reserve loans, we had a closed gold standard. If the Fed did not increase the money supply and the government continued to borrow more, then interest rates would have to skyrocket due to what is called the Crowding Out effect. That is when the private sector and public sector compete for a finite number of dollars. That increases interest rates. So, the Fed comes to the rescue by printing more money increasing the supply of money and keeping interest rates low. That new money causes inflation.

So, the problem with the debt is not the debt itself because we don't have to pay back the principle. The problem is that it causes inflation and hurts many people who don’t own assets. We cannot afford to have high interest rates due to our large debt, so the Fed prints money to increase the supply of money to keep those interest rates low and to give the government the opportunity to borrow more of the new money. So, the debt forces an open monetary system which insures asset and consumer inflation each year. People with assets love asset inflation but consumer goods inflation hurts people who don't own assets and people on fixed incomes. It causes a larger gap between the haves and the have nots. So, the problem with a large debt is that it encourages money printing and more borrowing by the government. The new money then causes asset and consumer inflation and hurts people struggling in life. Simple as that

[belltocher]

The message You're supposed to get is borrowing good not borrowing bad bigger debt good debt not getting bigger bad it's called propaganda

[ltetelestaio]

You showed a report saying that Trump suspended the debt ceiling, but commented that he raised it??? What about honesty? Have you considered making an honest remark about the differences between democrats and Republicans about the debt ceiling?

[duncanmcgoo]

Since California wants to tax people who don't live in California with a wealth tax, and since Biden and other Democrats don't think they should negotiate on the debt ceiling, the public should see quotes from Ronald Reagan on taxes:

1. “Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”

2. “We don’t have a trillion-dollar debt because we haven’t taxed enough; we have a trillion-dollar debt because we spend too much.”

3. “Republicans believe every day is the Fourth of July, but the democrats believe every day is April 15.”

4. “No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we’ll ever see on this earth!”

5. “Simple fairness dictates that government must not raise taxes on families struggling to pay their bills.”

6. “Government does not tax to get the money it needs; government always finds a need for the money it gets.”

7. “You can’t be for big government, big taxes, and big bureaucracy and still be for the little guy.”

8. “The American people are not undertaxed, the government in Washington is overfed.”

9. “Whenever we lower the tax rates, our entire nation is better off.