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Dukasaur wrote:US government being in a deficit position didn't start with Biden, that's for sure.
It's been going on pretty much all of your adult life.
mookiemcgee wrote:It's not a debate about spending, it's a debate about paying back money we already spent.
New Details in Debt Limit Deal: Where $136 Billion in Cuts Will Come From
Two years of spending caps, additional work requirements for food stamps and cuts to I.R.S. funding are among the components in the deal.
The full legislative text of Speaker Kevin McCarthy’s agreement in principle with President Biden to suspend the nation’s borrowing limit revealed new and important details about the deal, which House lawmakers are expected to vote on this week.
The centerpiece of the agreement remains a two-year suspension of the debt ceiling, which caps the total amount of money the government is allowed to borrow. Suspending that cap, which is now set at $31.4 trillion, would allow the government to keep borrowing money and pay its bills on time — as long as Congress passes the agreement before June 5, when Treasury has said the United States will run out of cash.
In exchange for suspending the limit, Republicans demanded a range of policy concessions from Mr. Biden. Chief among them are limits on the growth of federal discretionary spending over the next two years. Mr. Biden also agreed to some new work requirements for certain recipients of food stamps and the Temporary Aid for Needy Families program.
Both sides agreed to modest efforts meant to accelerate the permitting of some energy projects — and, in a surprise move, a fast track to construction for a new natural gas pipeline from West Virginia to Virginia that has been championed by Republican lawmakers and a key centrist Democrat.
(...)
Under the new legislation, the debt limit will be set at whatever level it has reached when the suspension ends. For political reasons, Republicans tend to prefer suspending the debt limit rather than raising it, because it allows them to say they did not technically green-light a higher debt limit.
The suspension will kick the next potential fight over the nation’s debt load to 2025 — past the next presidential election.
Caps and cuts spending
The bill cuts so-called nondefense discretionary, which includes domestic law enforcement, forest management, scientific research and more — for the 2024 fiscal year. It would limit all discretionary spending to 1 percent growth in 2025, which is effectively a budget cut, because that is projected to be slower than the rate of inflation.
Dukasaur wrote:Cuts to "law enforcement, forest management, scientific research and more".
No cuts to the endless enhancement of the ability of the Pentagon to bomb Third World countries into oblivion.
jusplay4fun wrote:Dukasaur wrote:Cuts to "law enforcement, forest management, scientific research and more".
No cuts to the endless enhancement of the ability of the Pentagon to bomb Third World countries into oblivion.
Like the "bombs" (artillery) US is sending to Ukraine?
Dukasaur wrote:jusplay4fun wrote:Dukasaur wrote:Cuts to "law enforcement, forest management, scientific research and more".
No cuts to the endless enhancement of the ability of the Pentagon to bomb Third World countries into oblivion.
Like the "bombs" (artillery) US is sending to Ukraine?
Fair point, but that's a fraction of the total "defense" (ROFL!) budget.
CBO: U.S. Federal spending and revenue components for fiscal year 2022. Major expenditure categories are healthcare, Social Security, and defense; income and payroll taxes are the primary revenue sources.
As the figure suggests, over 50% of discretionary spending is attributed to national defense. The remaining 48% of funds is divided among non-defense items such as transportation and education. Total discretionary spending approved for the fiscal year 2019 is $1,305 billion, just 28% of total spending.[10]
Interest on government debt
Oftentimes, federal governments spend more money than they collect in tax revenue in a given year. When the government spends more than it brings in, it runs a Budget Deficit that year.[17] In order to pay for the extra spending, governments issue debt. Government debt is the amount of money credited from individuals, firms, foreign entities as well as the federal government itself through the federal reserve system.[8] Debt accrues over time. Most public debt is held in the form of treasury bills and bonds, and the government has to repay debt over time. In order to provide an incentive for individuals, businesses and other entities to lend money, the government must also pay these parties interest on the debt.[18] The interest expense for fiscal year 2019 is $363 billion, or 7.9% of the total budget. According to estimates from the Office of Management and Budget, interest on government debt is expected to more than double by 2028 and account for a larger percentage of total expenditures.[10]
How Much Aid Has the U.S. Sent Ukraine? Here Are Six Charts.
Six graphics illustrate the extraordinary level of support the United States has provided Ukraine this past year in its war against Russian invaders.
Article by Jonathan Masters and Will Merrow
Last updated May 19, 2023 9:00 am (EST)
jimboston wrote:Does he often have conversations with himself or infer things that aren;t suggested or implied.
Oh yes… he does.
US debt ceiling bill passes House with broad bipartisan support
By David Morgan, Richard Cowan and Moira Warburton
May 31, 20239:49 PM EDT
WASHINGTON, May 31 (Reuters) - A divided U.S. House of Representatives passed a bill to suspend the $31.4 trillion debt ceiling on Wednesday, with majority support from both Democrats and Republicans to overcome opposition led by hardline conservatives and avoid a catastrophic default.
The Republican-controlled House voted 314-117 to send the legislation to the Senate, which must enact the measure and get it to President Joe Biden's desk before a Monday deadline, when the federal government is expected to run out of money to pay its bills.
mookiemcgee wrote:Agree with JP here, Fed at this point is the least partisan organization with power in the USG (though it isn't part of the USG officially).
Though I'd also point out money supply (M2) while an important indicator of monetary policy it is not an indicator of the health of the US economy, so that was a poor example to use imo. M2 is important but but that was just a poor context for it. I also think it's funny that you blamed biden for inflation in the thread you mentioned (again based on spending approved under Trump and tax cuts approved under Trump both of which are the main reasons inflation spiked), but now that it's 'getting under control' give all the credit to the fed, and don't even mention Biden... then you accuse someone else of 'left wing propaganda'
I think it's also important to point out the fed WANT'S higher unemployment rates, this is an important piece of lower inflation and an expected result of cranking up interest rates.
3. Conducting Monetary Policy
The Federal Reserve sets U.S. monetary policy to promote maximum employment and stable prices in the U.S. economy.
VIDEO: Fed Functions: Conducting Monetary Policy
Fed Chair Powell sees progress on inflation, though not quickly enough
WASHINGTON (AP) — Inflation may be cooling — just not yet fast enough for the Federal Reserve.
Chair Jerome Powell offered a nuanced view Wednesday of how the Fed intends to address its core challenge at a time when inflation is both way below its peak but still well above the central bank’s 2% target: Give it more time, and maybe some help from additional interest rate hikes.
Yet on a hopeful note, Powell also suggested that the trends that are needed to further slow inflation, from lower apartment rents to slower-growing wages, are starting to click into place.
As a result, the Fed decided Wednesday to forgo another increase in its benchmark interest rate, leaving it at about 5.1%. The pause followed 10 straight hikes in 15 months — the fastest series of increases in four decades.
By leaving rates alone, at least for now, Powell and other top Fed officials hope to use the extra time to more fully assess how higher borrowing rates have affected inflation and the economy. They also want to see whether the collapse of three large banks this spring will weigh on lending and growth.
In a surprisingly hawkish signal, the Fed’s policymakers issued projections Wednesday showing they envision as many as two additional quarter-point rate hikes before the year ends. (In Fed parlance, “hawks” generally favor higher rates to quell inflation, while “doves” typically advocate lower rates to aid a healthy job market.) Before this week’s policy meeting, Fed watchers had expected the policymakers to signal just one more rate increase this year.
In their new projections, the members of the Fed’s interest-rate committee were less divided than many economists had expected, with 12 of the 18 policymakers foreseeing at least two more quarter-point rate increases. Four favored one quarter-point hike. Only two envisioned keeping rates unchanged. The policymakers also predicted that their benchmark rate will stay higher for longer than they envisioned three months ago.
Powell noted that wage growth has slowed and cited some signs that the job market is cooling. Those factors, he added, should reduce inflationary pressures.
“I would almost say that the conditions that we need to see in place to get inflation down are coming into place,” Powell said. “But the process of that actually working on inflation is going to take some time.”
Inflation dropped to 4% in May compared with a year earlier, down sharply from a 9.1% peak last June. And many economists expect it to decline further. Rental costs are falling, and used car prices, which spiked in April and May, are also likely to drop.
Yet Powell underscored that the Fed will need to feel confident that inflation is moving steadily closer to its 2% target.
Biden focuses on Trump in speech near Valley Forge: "Democracy is on the ballot"
By Kathryn Watson
Updated on: January 5, 2024 / 8:56 PM EST / CBS News
In his first campaign speech of the election year, President Biden warned the nation against the perils of compromising democracy, and the threat he and his campaign believe former President Donald Trump poses to American democracy.
jusplay4fun wrote:If this is ALL due to what Biden (and the Fed) did, Biden is not getting the credit. I posted one poll on this matter in another thread:
https://www.conquerclub.com/forum/viewtopic.php?f=8&t=237819&start=400
The 2024 Elections in the US, mostly for the POTUS
And despite the rate of inflation SLOWING, most feel that they ARE NOT better off economically under Biden and his "Bidenomics." Bidenomics is a message that does not resonate with the American voters; hence Biden did not mention it today at Valley Forge in his campaign kick-off.Biden focuses on Trump in speech near Valley Forge: "Democracy is on the ballot"
By Kathryn Watson
Updated on: January 5, 2024 / 8:56 PM EST / CBS News
In his first campaign speech of the election year, President Biden warned the nation against the perils of compromising democracy, and the threat he and his campaign believe former President Donald Trump poses to American democracy.
https://www.cbsnews.com/news/joe-biden-marks-3-years-since-jan-6-2021-capitol-riot-valley-forge/
Transcript: Biden’s first campaign speech of the 2024 election year
Today, the topic of my speech today is deadly serious and I think it needs to be made at the outset of this campaign.
In the winter of 1777, it was harsh and cold as the Continental Army marched to Valley Forge. General George Washington knew he faced the most daunting of tasks, to fight and win a war against the most powerful empire in existence in the world at the time. His mission was clear: liberty, not conquest. Freedom. Not domination. National independence. Not individual glory.
Today at 8:47 AM EST
Brett LoGiurato
Inflation ticks higher than expected in December
Thursday's highly anticipated inflation report showed that consumer prices increased slightly more than expected in November.
A quick look at the numbers:
Headline CPI, month over month: 0.3% increase vs. 0.2% expected
Headline CPI, year over year: 3.4% vs. 3.2% expected
pmac666 wrote:jusplay4fun wrote:If this is ALL due to what Biden (and the Fed) did, Biden is not getting the credit. I posted one poll on this matter in another thread:
https://www.conquerclub.com/forum/viewtopic.php?f=8&t=237819&start=400
The 2024 Elections in the US, mostly for the POTUS
And despite the rate of inflation SLOWING, most feel that they ARE NOT better off economically under Biden and his "Bidenomics." Bidenomics is a message that does not resonate with the American voters; hence Biden did not mention it today at Valley Forge in his campaign kick-off.Biden focuses on Trump in speech near Valley Forge: "Democracy is on the ballot"
By Kathryn Watson
Updated on: January 5, 2024 / 8:56 PM EST / CBS News
In his first campaign speech of the election year, President Biden warned the nation against the perils of compromising democracy, and the threat he and his campaign believe former President Donald Trump poses to American democracy.
https://www.cbsnews.com/news/joe-biden-marks-3-years-since-jan-6-2021-capitol-riot-valley-forge/
CAUSE IT WAS ABOUT DEMOCRACY!!!
"the economy sux cause Biden didnt mention it in his speech about democracy" - Jp4f hot take.
Pack Rat wrote:pmac666 wrote:jusplay4fun wrote:If this is ALL due to what Biden (and the Fed) did, Biden is not getting the credit. I posted one poll on this matter in another thread:
https://www.conquerclub.com/forum/viewtopic.php?f=8&t=237819&start=400
The 2024 Elections in the US, mostly for the POTUS
And despite the rate of inflation SLOWING, most feel that they ARE NOT better off economically under Biden and his "Bidenomics." Bidenomics is a message that does not resonate with the American voters; hence Biden did not mention it today at Valley Forge in his campaign kick-off.Biden focuses on Trump in speech near Valley Forge: "Democracy is on the ballot"
By Kathryn Watson
Updated on: January 5, 2024 / 8:56 PM EST / CBS News
In his first campaign speech of the election year, President Biden warned the nation against the perils of compromising democracy, and the threat he and his campaign believe former President Donald Trump poses to American democracy.
https://www.cbsnews.com/news/joe-biden-marks-3-years-since-jan-6-2021-capitol-riot-valley-forge/
CAUSE IT WAS ABOUT DEMOCRACY!!!
"the economy sux cause Biden didnt mention it in his speech about democracy" - Jp4f hot take.
Here we go with jusplay4fun repeating the "troll" word.
Just like what pmac666 said, "CAUSE IT WAS ABOUT DEMOCRACY!!!
Jusplay4fun you are the one who is being a troll. I normally stay away from others who try to debate issues or simply having a discussion between 2 rational posters. Reading your rants and name calling is becoming seriously a bore.
Again, President Biden's speech was about democracy and the dangers that Trump could conceivably pose to our fragile democracy/Constitutional Republic.
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