BY Samantha Chang, The Western JournalJanuary 20, 2023
1 year ago
 | January 20, 2023
1 year ago

US Slams Into Debt Ceiling - Here's What It Means for Veterans, Retirees, & Federal Workers

The flaming dumpster fire that is Joe Biden's failed presidency lurched into an alarming new chapter this week, as the nation teeters on the verge of defaulting on its bills after it hit its $31.4 trillion debt ceiling.

The debt ceiling is the total amount of money the U.S. government can borrow to meet its obligations, including paying Social Security and Medicare benefits, military salaries, tax refunds and interest on its $31 trillion national debt.

In a letter Thursday to Republican Speaker of the House Kevin McCarthy, Treasury Secretary Janet Yellen said she's taking "extraordinary measures" to prevent the United States from defaulting on its financial obligations:

"In my letter of January 13, 2023, I noted that Public Law 117-73 increased the statutory debt limit to a level of $31.381 trillion, and informed you that beginning on January 19, the outstanding debt of the United States was projected to reach the statutory limit," she wrote. "This letter serves to notify you, pursuant to 5 U.S.C. § 8348(l)(2), of the extraordinary measures Treasury began using today."

Those "extraordinary measures," which include selling existing investments and suspending reinvestments in the Civil Service Retirement & Disability Fund and the Postal Service Retiree Health Benefits Fund, are expected to last through early-June.

The letter was a follow-up to a sobering Jan. 13 missive, in which Yellen urged McCarthy to raise the debt ceiling and warned of the dire consequences if this is not authorized.

In other words, the chief financial officer of the United States — a career economist — is begging Congress to increase the nation's credit line so it can borrow more money to pay its bills.

Why? Because the U.S. cannot manage its budget and spends more money than it has.

"It is therefore critical that Congress act in a timely manner to increase or suspend the debt limit," Yellen wrote in the Jan. 13 statement. "Failure to meet the government’s obligations would cause irreparable harm to the U.S. economy, the livelihoods of all Americans, and global financial stability."

If this situation is not resolved, Social Security payments, Medicare and Medicaid, and veterans benefits could be disrupted and federal services could be suspended.

The worst part of it all? As this serious crisis looms, take a look at what Biden has been up to:

While Biden is off being a derelict goof, there are fortunately still a few serious people left, and they are all vowing to take action regarding the debt ceiling.

Kevin McCarthy is being pressured by his own party to use this debacle to negotiate for cutbacks, which the spendthrift Democrats don't want to do.

On Wednesday, the speaker expressed frustration with the nation's fiscal irresponsibility, likening Democrats to an out-of-control child with a credit card.

"If you had a child and you gave them a credit card, and they kept hitting the limit, you wouldn't just keep increasing it," McCarthy told Fox News. "You'd first see what are you spending your money on? How can we cut items out?"

On Thursday, Republican Rep. Marjorie Taylor Greene of Georgia said she will not give the federal government another blank check.

"I will not sign off on a clean bill raising the debt ceiling limit!" she told Fox News.

Similarly, Republican Sen. Rand Paul of Kentucky — a fiscal conservative — said the GOP must not raise the debt ceiling unless some conditions are met.

"Democrats want a clean bill to raise the debt ceiling with no conditions. Republicans must say NO!" he tweeted.

Economist Peter Schiff torched the profligate United States as a Ponzi scheme.

"The U.S. Treas. Sec. has admitted the only way to avoid a default on the National Debt is to raise the #DebtCeiling so the Govt. can borrow from new lenders to repay existing lenders," Schiff tweeted. "This amounts to an official admission that the U.S. is running the world's largest Ponzi scheme."

Others on Twitter agreed with this assessment, painting a bleak picture of what's next for American economics:

As a reminder, the Biden administration has pledged nearly 100 billion U.S. tax dollars to Ukraine to defend its borders while our own border is under daily siege and Americans struggle to pay for groceries and gas.

This emergency should serve as a wake-up call to compel our leaders to stop frivolously wasting money and start managing the nation responsibly.

This article appeared originally on The Western Journal.

Written by: Samantha Chang, The Western Journal



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