The U.S. Senate on Thursday evening passed a compromise deal to suspend the debt ceiling until after the presidential election while capping the rate of spending growth in subsequent years.Read More
House Passes Compromise Deal to Suspend Debt Ceiling, Cut Spending
The House of Representatives on Wednesday evening passed a bipartisan deal to suspend the debt ceiling and cut spending ahead of a June 5 deadline to avert a national default.Read More
DeSantis Blasts McCarthy Over Budget Deal for ‘Careening Towards Bankruptcy’
by Harold Hutchison Republican Gov. Ron DeSantis of Florida ripped House Speaker Kevin McCarthy early Monday over the debt ceiling deal, calling it “totally inadequate” when it came to addressing spending. “Prior to this deal, Kayleigh, our country was careening toward bankruptcy and after this deal, our country will…Read More
GOP-Led House Expected to Vote Wednesday on Debt Limit Compromise Legislation
The GOP-led House is expected to vote Wednesday on the legislation resulting from a compromise between House Speaker Kevin McCarthy and President Joe Biden on the debt limit.Read More
Commentary: Any Debt ‘Default’ Will Be Biden’s Choice
There’s enough revenue to pay interest on the debt even if the $31.4 trillion debt ceiling is reached.
Meaning, if the U.S. defaults on the debt on June 1, it will be because President Joe Biden chose not to make principal and interest payments on U.S. Treasuries out of existing revenue, for which there is more than ample revenues to service and refinance up to the current debt ceiling limit, $31.4 trillion.Read More
Commentary: The ‘Limit, Save, Grow’ Plan’s Discretionary Spending Caps that Save More than $3 Trillion Might Not Be Enough
House Speaker Kevin McCarthy (R-Calif.) and the House Republican majority have unveiled their spending plan for the next decade, the Limit, Save, Grow Act, that will be tied to a $1.5 trillion increase in the $31.4 trillion national debt ceiling, the centerpiece of which imposes discretionary budget caps beginning in 2024, but which will be set at 2022 levels, which could save more than $3.2 trillion over the next decade, according to an estimate by the Committee for a Responsible Federal Budget.
While an official score still has not come in from the Congressional Budget Office, the proposal stands out as a promise kept on McCarthy’s part to use the must-pass debt ceiling to restore some semblance of fiscal sanity to the out-of-control federal budget and national debt, the latter of which the White House Office of Management and Budget projects will rise to a gargantuan $50.7 trillion by 2033.Read More
Commentary: The Interest Alone on the National Debt Will Hit $1 Trillion in 2024 as Reserve Currency Status Is Questioned
Gross interest owed on the $31.4 trillion national debt — that is, interest owed on both the $24.9 trillion publicly traded debt and the $6.7 trillion debt in the Social Security, Medicare and other trust funds — will reach a gargantuan $1 trillion in 2024 for the first time in American history, according to the latest data gathered by the White House Office of Management and budget.
To put that into perspective, that is more than is spent on national defense related spending, currently $814 billion.Read More
Commentary: Despite ‘Strong’ Rhetoric, Biden Administration Signals Gloomy Economic Outlook
The White House Office of Management and Budget (OMB) in the now-released President’s Budget is projecting just 0.6 percent in inflation-adjusted real growth of the U.S. economy in 2023 as the unemployment rate is expected to rise to 4.3 percent in 2023 and peak at 4.6 percent in 2024 after the economy is finished overheating from the continued, elevated inflation, consumers max out on credit and spending falls off a cliff.Read More
U.S. Projected to Tack on $19 Trillion in Debt over Next Decade as Spending Soars
The U.S. is likely to add $19 trillion more to the national debt in the next 10 years, which is $3 trillion higher than previously expected, new Congressional Budget Office (CBO) predictions show.
By the end of 2023, the CBO projects the deficit to be $1.4 trillion, and it will continue to average about $2 trillion annually, raising the debt to about $52 trillion. The CBO report indicates that the rise in the deficit is a result of bipartisan legislation coupled with the Federal Reserve’s hike in interest rates.Read More
Florida’s DeSantis Seeks Tax Relief in Proposed $114 Billion Budget
Florida Governor Ron DeSantis held a news conference in Tallahassee Wednesday to discuss his “Framework for Freedom” budget.
DeSantis’ proposed $114.8 billion budget contains some tax relief measures as the economy in the Sunshine State has performed far better than other states. Last year the state surplus was over $20 billion, and DeSantis stated that this money needs to go back to the people.Read More
GOP Lawmaker Floats Mechanism to Default Spending to Current Levels to Avert Debt Ceiling Crises
With the nation stuck at its $31.38 trillion debt limit and the Department of the Treasury imposing “extraordinary measures” to keep the government running, one GOP lawmaker is floating a new proposal to default federal spending to current levels to avert recurring standoffs over raising the debt ceiling.Read More
Commentary: Wokeness Is Hollowing Out The Fed
Are you wondering why checking out at the grocery store these days feels like making a mortgage payment? This week’s four-decade-high inflation is a direct result of the Federal Reserve taking its eye off the ball over the last two years. Instead of focusing on its mandate of keeping prices stable, it has been more concerned with financing massive federal deficits and kowtowing to liberal ideology.
But now the Fed chair is claiming just the opposite.Read More
House Speaker Fight Foreshadows Larger Debt Ceiling Battle on the Horizon for Republicans
The gridlock that paralyzed House Republicans over the past week in their quest to elect a new Speaker could be a foretaste of more to come, with party moderates and conservatives set to tangle in the months to come over raising the debt ceiling and reining in reckless government spending.
Although newly elected Speaker of the House Kevin McCarthy ultimately prevailed in his bid for the office over a small but determined band of House Freedom Caucus members, his slim GOP majority in the House will be vulnerable if and when conservatives rebel again down the road, as some are predicting, in an effort to reassert debt reduction as a top priority for the party.Read More
Commentary: The $1.7 Trillion Omnibus Prioritizes Diversity, Equity, and Inclusion in Higher Education and STEM Spending
The national debt is growing, but Congress’ recent spending bill is a telltale sign that it has no intention of shrinking the deficit.
After receiving bipartisan support in the Senate, the House passed a 1.7 trillion spending bill on Dec 16, avoiding a government shutdown.
The bill allocates funding mostly to defense, including $45 billion to Ukraine, which will assist the country in its war effort against Russia.Read More
Commentary: Biden Admin Blames the American People for its Own Ludicrous Spending
Last week, Treasury Secretary Janet Yellen blamed the American people for the 40-year high inflation we have been enduring.
Appearing on “The Late Show with Stephen Colbert,” she said that Americans “were in their homes for a year or more, they wanted to buy grills and office furniture, they were working from home, they suddenly started splurging on goods, buying technology.” According to her, this consumer “splurging” caused prices to rise so much.Read More
Commentary: It’s the Most Wonderful Time of the Year (for the Washington, D.C. Establishment)
It is Christmas season. The decorations are hung or need to be. Gifts are being purchased. The Advent Week of peace is being celebrated. Parties are being thrown. And Americans wind down from a long, stressful year.
Unfortunately, while most Americans refocus, the rest of the world doesn’t stop, but in many cases looks at this time as an opportunity to exploit.Read More
Commentary: The Fed’s Interest Rate Hikes Have only Destroyed $398 Billion of the $6 Trillion It Printed
“Our expectation has been we would begin to see inflation come down, largely because of supply side healing. We haven’t. We have seen some supply side healing but inflation has not really come down.”
That was Federal Reserve Chairman Jerome Powell on Sept. 21, speaking to reporters following the central bank’s meeting where the Federal Funds Rate was once again increased 0.75 percent to its current range of 3 percent to 3.25 percent in a bid to combat sticky 8.3 percent consumer inflation the past year.Read More
U.S. Senate Passes Massive Tax and Spend Bill Targeting Carbon Emissions, Prescription Drug Costs, More
The U.S. Senate on Sunday passed a $740 billion new taxing and spending bill that seeks to combat climate change and allow the government to control the price of prescription medications, among other things.
No Republicans voted for the bill, named the Inflation Reduction Act of 2022, in the divided 50-50 Senate, forcing Vice President Kamala Harris to break the tie. The measure must return to the House for a concurrence vote after senators passed several amendments Sunday. The House is expected to take the bill up again on Friday. If the House concurs, President Joe Biden has indicated he will sign it.Read More
‘It’s An Absurd Argument’: Economists Take Apart One of Biden’s Favorite Talking Points
The Biden administration’s oft-touted talking point that employment has boomed under the administration is misleading and instead simply a natural recovery from pandemic losses, economists told the Daily Caller News Foundation.
Facing consecutive quarters of negative gross domestic product (GDP) growth, sky-high inflation and plummeting consumer sentiment, the Biden administration has routinely cited a low unemployment rate and strong on-paper jobs creation as positive results of President Joe Biden’s economic stewardship. But the notion that these figures represent booming job creation is misleading since the economy has merely rebounded by adding back jobs that were lost during the pandemic and has still yet to reach pre-pandemic levels, economists told the DCNF.Read More
Commentary: Recession Predictor 10-Year, 2-Year Treasuries Spread Inverts Once Again Amid Crushing Inflation
The spread between 10-year and 2-year treasuries, a reliable indicator of incoming recessions that has predicted almost every recession in modern economic history, inverted once again overnight Monday amid financial markets turmoil with interest rates rising rapidly, the dollar strengthening and equities markets crashing.
That is almost certainly terrible news for President Joe Biden and Congressional Democrats ahead of the 2022 Congressional midterms. The White House has attempted to highlight relatively low unemployment numbers as signs of a healthy economy, with President Biden on June 3 declaring the latest jobs numbers as “good news.”Read More
House Passes Democrats’ Social Spending Bill After Congressional Budget Office Score
Congressional Democrats passed a $1.75 trillion social spending plan Friday, putting the bill’s fate in the hands of a deeply divided Senate.
The bill funds universal pre-kindergarten, climate change spending, Obamacare subsidies, an extension of the monthly child tax credit payment and more wide ranging spending items. House Republican Leader Kevin McCarthy spoke more than eight hours on the House floor overnight to delay the vote until Friday morning, but afterward it passed 220-213 along party lines with one Democrat opposed.
“We are very excited for what it does for the children, for the families,” House Speaker Nancy Pelosi, D-Calif., said in a press conference after the bill’s passage.Read More
Senate Republicans Filibuster Government Funding Bill Over Debt Ceiling Provision With Three Days Until Shutdown
Senate Republicans Monday filibustered Democrats’ bill to fund the government and suspend the debt ceiling, days before a potential federal shutdown and possible debt default.
Republicans vowed for weeks to oppose a debt ceiling increase and urged Democrats to put the provision in their filibuster-proof $3.5 trillion reconciliation bill. But Democrats have thus far refused to do so, and with their bill’s failure Monday, Congress now has just three days to pass a new funding bill to avoid a government shutdown set to begin Friday at midnight.Read More
The Congressional Budget Office Says the Bipartisan Infrastructure Bill Will Increase Deficits by $256 Billion over 10 Years
The Congressional Budget Office estimated Thursday that the bipartisan Senate infrastructure bill will add $256 billion to the deficit over the next decade, undercutting its backers’ claims the spending had been offset.
In FY2020, the deficit hit a record $3.1 trillion. So far in FY2021, the deficit is $2.2 trillion. The national debt is climbing to $29 trillion for the first time in U.S. history.Read More
U.S. Set to Hit Debt Ceiling Within Four Months, Congressional Budget Office Estimates
The federal government is on track to reach the statutory debt limit in the fall, which would trigger a government shutdown, according to a Congressional Budget Office (CBO) estimate.
The U.S. is projected to reach the debt ceiling of $28.5 trillion by October or November, a CBO report released Wednesday stated. If Capitol Hill lawmakers don’t reach an agreement on raising the limit higher, the government could undergo its third shutdown in less than four years.
“If the debt limit remained unchanged, the ability to borrow using those measures would ultimately be exhausted, and the Treasury would probably run out of cash sometime in the first quarter of the next fiscal year (which begins on October 1, 2021), most likely in October or November,” the CBO report said.Read More
California Spent $13 Million to Guard 120 Empty Homes
The state government of California has been revealed to have spent $13 million on providing security for 120 empty houses for five months, even as a homeless crisis ravaged the state, Fox News reports.
In a report broken by local outlet Fox 11, the California Department of Transportation (CalTrans) paid $9 million to the highway patrol from November 2020 to April 2021, and gave another $4 million to a private security firm over the same period, all for the purpose of protecting the vacant houses in Pasadena.
In a statement addressing the report, CalTrans said that the houses had been purchased by the government 60 years ago, when there were plans for a change in the local infrastructure by connecting the 710 freeway to the 210. However, that project “is no longer moving forward,” the government statement declared.Read More
Commentary: It is Time to Fight for the Rights of Independent Businesses
As a very young man, I was fortunate enough to start my own company out of my apartment using a small amount of investment capital from friends and family. Over time, that business grew to have over 6,000 employees and revenues in excess of $2 billion. Over nearly a 40-year span, my team and I built what some would consider a remarkable track record, as measured by both sales and profits.
Because of my experience growing that business, I feel a special kinship with small, privately owned businesses and their owners. I also come from a middle-class background, one that shaped me into the person I am today. It is through both the lens of entrepreneur and member of the middle-class that I look through when reflecting upon this Independence Day.Read More
Commentary: Price Stability, not Inflation, Will Get the U.S. Economy Back to Full Employment Sooner Rather than Later
2020 and 2021 are two sides of the same coin: Price instability brought about by the dollar being either relatively too strong or too weak, which can lead to or exacerbate economic slowdowns, creating higher unemployment and worse if the conditions persist for too long.
In 2020, at the height of the Covid pandemic, the problems included the global economy being shut down plus local lockdowns resulting in a massive recession and a flight to safety into U.S. treasuries as interest rates collapsed, making the dollar too strong. With the onset of deflation, consumer prices plummeted in March and April 2020, with oil even dropping briefly below zero dollars for the first time in history, and a concurrent rise of unemployment as 25 million Americans lost their jobs.Read More
Biden’s ‘American Jobs’ Plan Could Cost Taxpayers about $666,000 per Job Created
President Joe Biden’s proposed $2 trillion American Jobs Plan could end up costing taxpayers more than $666,666 per job created.
The Washington Post gave Biden “two Pinocchios” for saying the American Jobs Plan, his infrastructure and jobs proposal, will create 19 million jobs. Both Biden and his Transportation Secretary Pete Buttigieg have made the 19 million jobs claim. The source of the statement is a Moody’s analysis, which CNN pointed out had estimated the U.S. economy would add about “16.3 million jobs over the same period if the infrastructure proposal does not get passed.”Read More