"Mitch McConnell just had Republicans in the Senate declare a filibuster against a simple piece of legislation that would raise the debt ceiling to keep the federal government running, telling Democrats if they want to avoid a massive and destructive government shutdown they’re going to have to raise the debt ceiling using reconciliation.
It appears that this is suicidal behavior. Why would they be willing to blow up the entire country along with themselves and their reputations?
On its surface, strapping an explosive vest to yourself and blowing yourself up seems pointless, an exercise in futility or even nihilism. But only a very small percentage of suicide bombers are simply suicidal.
Mitch McConnell’s Republican Senate suicide bombers are, like those who blew themselves up to try to drive Americans out of Iraq or Israel out of Gaza, actually on a mission with clear purposes and objectives.
Not that you’d know it from the media. Just like the grievances of Middle Eastern suicide bombers are usually ignored or glossed over, the actual reasons why McConnell’s Republicans would strap on the debt-ceiling suicide vest is almost never mentioned in mainstream American reporting." - Thom Hartmann, Republican Suicide Bombers Threaten America, smirkingchimp.com
As I noted in my Aug. 6th post, the GOP has ceased to be a viable, functional party and has now morphed into a fascist, pro-authoritarian cult. At every turn these misfits and criminals have militated against the common good and national welfare, from spreading their Covid lies and support of traitor militias to now hurling the nation under the bus financially. This is in respect to blocking the Democrats from raising the debt ceiling, which means paying off our existing debts - NOT starting new ones.
We can also cite the GOOp Senators' role in the insurrection and sedition of January 6th, and the (recently revealed) traitor Jeffrey Clark's effort to overturn the general election. These rats have some nerve claiming Gen. Mark Miley was "committing treason" at a Senate hearting on the Afghan withdrawal yesterday, when they are committing treason in betraying the nation's critical financial interests - including the cessation of pay to our soldiers. This is manifest in their refusal to allow raising of the debt ceiling.
Contrary to widely circulated myths a debt-ceiling increase does not authorize new spending; it just raises the arbitrary cap on how much the government can borrow to pay off bills to which it has already committed. Given that Congress generally spends more than it collects in revenue, it must allow the Treasury to borrow money to make up the difference. If Treasury can’t borrow - say to pay VA benefits and Social Security - a lot of bad stuff happens which is where the GOP terror enters.
If. the government can’t borrow to pay bills that come due, it would have to suspend certain pension payments, withhold or cut the pay of soldiers and federal workers, or delay interest payments, which would constitute default. Unless Congress raises the debt ceiling, the Treasury could be forced to cut payments by more than 40%, including to millions of U.S. households now depending on the child tax credit.
Uncle Sam would also have trouble paying civilian salaries, Social Security benefits, government contractors, domestic and international creditors, and almost every other bill already racked up. If we default on these IOUs, even briefly, that not only hurts those denied their promised payments. it also makes it more expensive for the government to borrow going forward.
Since GOP fiscal hawks are always yapping about "saddling our great grand kids with paying huge interest on the debt" it's kind of choice these roaches would stoop to making it even worse. But they would because they're fiscal terrorists. It's bad enough, as Rachel Maddow put it Monday night- they have zero interest in responsible governance - but to also block the Democrats from paying our just debts is beyond the pale, bordering on fiscal terrorism. In this case the will to crash the still fragile economy and banking system - like Osama bin Laden hoped to do in the 9/11 attacks.
But the terror doesn't stop there. A U.S. default could trigger a worldwide financial crisis, possibly a depression. That’s because financial markets currently treat U.S. debt as the safest of assets, with all other assets around the world benchmarked against us. Our default would send waves of financial panic cascading through lots of other markets, too. If. the government can’t borrow to pay bills that come due, it would have to suspend certain pension payments, withhold or cut the pay of soldiers and federal workers, or delay interest payments, which would constitute default. Unless Congress raises the debt ceiling, the Treasury could be forced to cut payments by more than 40%, including to some U.S. households, according to one estimate from Goldman Sachs.
To refresh readers' memories, in 2011, Standard & Poor’s stripped the U.S. of its triple-A credit rating for the first time after the Treasury came within days of being unable to pay certain benefits. In other words, a credit downgrade merely for coming close to default. Now imagine what an actual default at the hands of Republican terrorists would do.
It is little wonder that business groups (e.g. Business Roundtable, U.S. Chamber of Commerce, etc.), current and former Treasury officials and Wall Street firms have raised alarms in recent weeks over the prospect of a government default, which they say would be disastrous for financial markets and the U.S.
As proven vermin all these odious grifters and Trump parasites care about is raw power and paying homage to the worst traitor in U.S. history - Dotard J Trump. A maggot my Revolutionary war ancestors would have had hung long ago.
Already Treasury Secretary Janet Yellen has warned lawmakers that if debt ceiling suspension isn't approved by Oct. 18th calamitous effects will follow. These include missing $20 b in Social Security payouts on Oct. 20th, as well as inability to pay $6 b in IRS tax refunds. More specifically, up to 50 million Americans will miss one or more Social Security payments and 30 million families will lose out on collecting any child tax credit monies. Federal workers will also face extended layoffs as "Moscow Mitch" McConnell's Reep traitors take the country hostage.
But that is only the beginning of the calamity as we risk also a major recession as U.S. default leads to credit ratings downgraded, and capital reserves to pay existing obligations vanish. Look for interest rates to spike, including on mortgages as well as credit cards. And then watch out for international credit markets and stock markets to be roiled, even crash. Already the nasty effects are rebounding through short term money market funds as investors went Treasury assurances they won't be caught a day late and dollar short if a default happens. Basically, they demand the same protections as with holding longer term money markets.
Do the Repukes care about any of the financial catastrophe they are on the cusp of creating? Of course not, they are laughing all the way to Mar-a-Lago, to prove to traitor Trump what they have wrought in his name. These despicable degenerates actually get off on destroying the nation's financial stability and seeing millions suffer when critical benefits - whether for VA support or Social Security - are not received. And then to have the audacity to try to pin it on the Democrats!
When you wake up Saturday morning and find the U.S. in deadbeat status and all our interest rates jacked up - from cars to credit cards- blame the Repukes. A cult of degenerates who actually believe if they crash the U.S. economy by letting the U.S default for the first time in history they can prevail in next year's midterms. Oh, and get this: On the basis of being more "fiscally prudent" than the Dems. No, you can't make this shit up. That's what they believe. Investigate it for yourself!
by Thom Hartmann | September 30, 2021 - 7:14am | permalink