Tag Archives: government debt

Mulvaney waves off Puerto Rico bailout talk after Trump hints at erasing politicians’ debts

Source: Bloomberg

“President Donald Trump’s budget chief said not to take the president’s suggestion that Puerto Rico’s debt would be ‘wiped out’ literally, as the territory’s bonds plunged to a record low on Wednesday. A benchmark general obligation bond due in 2035 plunged to a record low of 32 cents on the dollar Wednesday morning from 44 cents the previous day after the president’s remarks. ‘I think what you heard the president say is that Puerto Rico is going to have to figure out a way to solve its debt problem,’ Mick Mulvaney, director of the White House budget office, said in an interview Wednesday. ‘We are not going to bail them out. We are not going to pay off those debts. We are not going to bail out those bond holders.'” (10/04/17)


End government borrowing

Source: American Institute for Economic Research
by Sheldon Richman

“Because the sky is apparently the limit to its debt, the government actually has a debt sky. Trump reportedly favors eliminating the debt ceiling. Senate Minority Leader Charles Schumer (D-NY) agrees with Trump, and the two are said to have a ‘gentlemen’s agreement’ on this issue. Presidents dislike debt-ceiling legislation because members of Congress often include unrelated budget items that would otherwise be vetoed. While we might appreciate an end to the charade, this nevertheless seems to be ‘progress’ in the wrong direction. The right direction would be toward eliminating government borrowing by requiring a balanced budget — at a far lower level than the current $4.147 trillion.” (09/25/17)


Don’t worry about short-term deficit

Source: USA Today
by Chris Edwards

“With tweets, speeches and meetings, President Trump is urging Congress to cut taxes by the end of the year. The president argues that our high business taxes are driving investment abroad and hurting U.S. workers. Most members of Congress agree that we need to reduce our 35% federal corporate tax rate, which is one of the highest in the world. The disagreement comes when Trump says he wants ‘the biggest tax cut … in the history of our country,’ as he tweeted the other day. He seems to be promising to vastly slash Uncle Sam’s grab from our wallets. That would be great if Trump and Congress matched the tax cuts with spending cuts. But without the latter, deficits would rise and simply impose higher taxes on people down the road. … Alas, Republicans cannot seem to cut spending, and they have not yet agreed on which tax breaks to repeal. Without such deficit offsets, they should scale back their tax package to just the most pro-growth elements, particularly a corporate tax rate cut.” (09/17/17)


Debt ceiling, now more than ever

Source: The American Spectator
by Hunt Lawrence & Daniel J Flynn

“Republicans made a balanced-budget amendment the first plank in their ten-point Contract with America. Twenty-three-years later, the GOP’s most powerful deprioritize the debt, deficits, and spending. Words made this obvious in recent days. Numbers made it apparent, too. The national debt eclipsed the $20 trillion mark last week. For all but four years during the new century, Republicans have controlled the House, where spending bills originate. The Republicans now control both houses of Congress and the presidency. Blaming Democrats for future increases in the debt, which skyrocketed more than $300 billion in a single day last week, strikes as something only stalwarts swear by.” (09/14/17)


Our amazing debt

Source: Reason

“The national debt just skipped past $20 trillion, which puts America’s indebtedness at ‘unfathomably staggering.’ (And the chunk you owe personally at ‘a lot.’) The math behind the national debt is so complex that Reason TV decided to lean on ‘Cosmos’ to explain it.” [Flash video] (09/12/17)


Does the debt ceiling do any good?

Source: Free Press Publications
by Darryl W Perry

“Since its creation, the debt ceiling has never been lowered — EVER — and has been increased 74 times since 1962. Conservative hero Ronald Reagan allowed the debt ceiling to be raised 18 times during his Presidency, and it was raised (or temporarily suspended) another 27 times since 1988. The debt ceiling currently stands at $19.8 trillion and President Trump is working on a deal with Congress to eliminate the debt ceiling altogether. To say this is akin to giving a drunken sailor on shore leave a credit card with no spending limit would be an insult to the drunken sailor on shore leave, because the drunken sailor would still be left with the consequences of his overspending.” [text, Flash audio, or MP3]


Trump, Schumer conspire on plan to repeal debt ceiling altogether

Source: Washington Post

“President Trump and Senate Minority Leader Charles E. Schumer (D-N.Y.) have agreed to pursue a deal that would permanently remove the requirement that Congress repeatedly raise the debt ceiling, three people familiar with the decision said. Trump and Schumer discussed the idea Wednesday during an Oval Office meeting. The two, along with House Minority Leader Nancy Pelosi (D–Calif.), agreed to work together over the next several months to try to finalize a plan, which would need to be approved by Congress. … Treasury Secretary Steven Mnuchin has suggested scrapping the existing debt-limit process and replacing it with one that automatically lifts the borrowing limit every time Congress appropriates future spending.” (09/07/17)


Trump on debt: Even more establishment than the establishment

Source: Garrison Center
by Thomas L Knapp

“The Washington Post reports that US president Donald Trump and Senate Minority leader Chuck Schumer (D-NY) ‘have agreed to pursue a deal that would permanently remove the requirement that Congress repeatedly raise the debt ceiling.’ That must be a bitter pill to swallow for those who thought they were electing an ‘anti-establishment’ president to ‘drain the swamp’ in Washington, but it should be no surprise. After all, Trump built his business career on going into debt up to his neck, taking a profit when things worked out, and leaving his partners holding the bankruptcy bag when they didn’t.” (09/07/17)


Debt limit showdowns can be a good thing

Source: Fox News
by Brian Riedl

“President Trump has reportedly cut a deal with Congressional Democrats to kick the can down the road on the national debt. The deal — which has infuriated Congressional Republicans — will extend the debt limit for three months (which will become six months after Treasury raids other government funds to allow even more debt). In doing so, they have rubber-stamped budget deficits that are surging back towards $1 trillion, and a national debt that is on a calamitous path to leap from $20 trillion to $92 trillion over the next 30 years. This deal surrenders what Washington truly needs: a debt limit showdown.” (09/07/17)


Trump strikes a deal with Democrats to fund the government — right in front of Ryan and McConnell

Source: Rare

“President Donald Trump went around his own party Wednesday, siding with Democrats on a deal to fund the government and raise federal borrowing limits for three months — all to help speed cash to hurricane survivors. ‘We had a very good meeting with Nancy Pelosi and Chuck Schumer,’ Trump said after a brief White House pow-wow with congressional leaders, the Associated Press reports. ‘We agreed to a three-month extension on debt ceiling, which they consider to be sacred, very important.’ Trump didn’t mention House Speaker Paul Ryan or Senate Majority Leader Mitch McConnell, who were also present at the meeting but opposed the Dem-backed deal. As part of the agreement, legislators will speed a $7.9 billion hurricane relief package to the president’s desk by the end of the week, before FEMA’s annual funding dries up at the federal fiscal year’s close at the end of September.” (09/06/17)