Debt Ceiling Shenanigans

This is called Playing Chicken with the debt ceiling. If the ceiling isn’t raised, according to Treasury Secretary and person-who-has-had-just-about-enough-of-these-stupid-shenanigans Janet Yellen, America will default on its debts somewhere around June 1. If that happens, all economic hell will break loose, likely plunging the United States into a recession and potentially bringing the global economy down with it.

Republicans in Congress raised the debt ceiling three times under President Donald Trump without issue, even as Trump was adding nearly $7.8 trillion to the national debt. The U.S. debt increased $9 trillion during the eight years Obama was in office.

The ceiling cap is all about trying to alert that the Congress has voted to spend money it does not have. The Committee on Ways and Means has the responsibility for raising the revenue required to finance the Federal Government. This includes individual and corporate income taxes, excise taxes, estate taxes, gift taxes, and other miscellaneous taxes. Clearly the Committee has not done its job.

Republican House Speaker Kevin McCarthy is trying to win points with the extremists in the G.O.P. by threatening to not raise the limit. Everyone agrees the government should not spend money it does not have. The savings the G.O.P. want to make are all on the backs of the poorest Americans.

At the end of the day Biden and McCarthy will reach a compromise. The consequence of no compromise will be devastating for the United States and the rest of the world.

Social Security and Medicare are Running out of Money

Sadly the congress of the United States delays confronting serious problems to the last minute. The debt ceiling was reached in January and there is casual discussion about adjusting it or doing major budget changes while the treasury secretary juggles the bills that are due now. We have an even big problem looming that will impact everyone.

Social Security and Medicare are running out of money.

Medicare’s trust fund is projected to be exhausted by 2028. Social Security’s trust fund is projected to be exhausted by 2035. When that happens the money each fund will dispense will be equal to incoming receipts. According to the Washington Post payments to doctors and health plans will likely be 90% of current reimbursements starting in 2028 and a 20 percent cut for all seniors receiving a Social Security check in 2035.

So, those are the two basic options to solve these issues: raise taxes or cut benefits. You could do similar things today. For example, to make Social Security solvent for the next 75 years, legislators could raise the tax rate from 6.2% to 8.1%. According to current actuarial projections, this would fix the problem until 2095.

Democratic lawmakers say that both Social Security and Medicare can be addressed without any cuts to the program — an approach expected to be codified in Biden’s upcoming budget, which is set to be released next month. Some liberal lawmakers have pushed for a one-line change to federal law that would require general funds from the Treasury Department to be used to pay off the shortfalls in the programs and make beneficiaries whole. Some liberal advocates, meanwhile, have pointed out that tax hikes would take care of the funding shortfall. One proposal to lift the current cap on earnings subject to Social Security payroll taxes, endorsed by Sen. Bernie Sanders (I-Vt.) Sen. Joe Manchin (D-WV) and others in the Democratic caucus, would extend funding for the program for decades. That cap is now about $160,000.

Will congress do anything before the last minute? Not likely.

President Donald Trump was Responsible for the January 6, 2021 Insurrection

Bennie Thompson January 6 committee chairman

The House select committee investigating the January 6, 2021, attack on the US Capitol has concluded that former President Donald Trump was ultimately responsible for the insurrection, laying out for the public and the Justice Department a trove of evidence for why he should be prosecuted for multiple crimes.

For months, the Jan. 6 committee went back-and-forth over whether it would refer former President Donald Trump to the Justice Department for criminal prosecution. On Monday, the committee didn’t equivocate.

The committee referred Trump to the DOJ on at least four criminal charges, including:

Obstructing an official proceeding
Defrauding the United States
Making false statements
Assisting or aiding an insurrection

It is truly sad that a president did not honor his oath.

“I do solemnly swear (or affirm) that I will faithfully execute the Office of President of the United States, and will to the best of my ability, preserve, protect and defend the Constitution of the United States.”

§2383. Rebellion or insurrection Whoever incites, sets on foot, assists, or engages in any rebellion or insurrection against the authority of the United States or the laws thereof, or gives aid or comfort thereto, shall be fined under this title or imprisoned not more than ten years, or both; and shall be incapable of holding any office under the United States.

Will the Department of Justice prosecute Trump? If they do not it will mean that people of influence are not treated like the rest of us.

“I have no doubt that once the investigation proceeds and is concluded, if the evidence is as we presented it, I’m convinced the Justice Department will charge former President Trump,” chairman Bennie Thompson says on CNN.

A voice of Independence

Arizona Senator Sen. Kyrsten Sinema has changed her registration from Democrat to independent. She wrote her reasons in the Arizona Republic and they were posted to that newspaper’s website. You can read the entire article here but the following are the consequential parts.

I too am registered as an Independent in California. I too am sick of the non stop bickering and one upmanship where making political points is more important than doing the right thing.

“Everyday Americans are increasingly left behind by national parties’ rigid partisanship, which has hardened in recent years. Pressures in both parties pull leaders to the edges, allowing the loudest, most extreme voices to determine their respective parties’ priorities and expecting the rest of us to fall in line.”

“In catering to the fringes, neither party has demonstrated much tolerance for diversity of thought. Bipartisan compromise is seen as a rarely acceptable last resort, rather than the best way to achieve lasting progress. Payback against the opposition party has replaced thoughtful legislating.”

“Americans are told that we have only two choices – Democrat or Republican – and that we must subscribe wholesale to policy views the parties hold, views that have been pulled further and further toward the extremes.”

“Most Arizonans believe this is a false choice, and when I ran for the U.S. House and the Senate, I promised Arizonans something different. I pledged to be independent and work with anyone to achieve lasting results. I committed I would not demonize people I disagreed with, engage in name-calling, or get distracted by political drama.”

“I promised I would never bend to party pressure, and I would stay focused on solving problems and getting things done for everyday Arizonans.” 

“My approach is rare in Washington and has upset partisans in both parties.” 

Could this be the end of the two party system in the United States? Not likely. The most we can hope for is a third party of consequence.

Trump calls for the termination of the Constitution

A madman dreams of being the supreme leader of the United States. His children and grandchildren would go on to rule this country.

Donald Trump dreams of becoming president for life. No voting is necessary because he believes he is entitled to hold the presidency until the day he dies. The former President Donald Trump on Saturday evening doubled down on his calls to “terminate” the United States Constitution and restore him to power.

Like any dictator he says whatever he wants and he gets it. His admiration for Vladimir Putin, Xi Jinping, and Kim Jong-un is because they have absolute power. Military parades are a sign of power and he wanted one in Washington D.C. but was told the tanks and other military hardware would tear up the streets and so he relented.

Trump’s problem is he seems to really believe that the 2020 election was rigged. He doesn’t know how it was accomplished but really doesn’t care. As a spoiled brat as a child who was given everything he wanted he just can’t accept reality.

There are plenty of adult Republicans who have told him to accept reality and move on but it is not a reality he will accept. Unfortunately there remains a large minority of Republicans who have bought his claims of victory. Kari Lake, the failed GOP candidate for governor of Arizona is the best example of someone who has bought Trump’s nonsense.

Can you imagine if Trump wins the election in 2024. What would happen four years hence? He would want to overturn the Constitution and run for a third term.

Sadly USA Today reports “Republican leaders mostly silent over Donald Trump’s call to suspend the Constitution.”

The success of Jack Smith and Merrick Garland are our best hope of saving this democracy.