For roughly six months we’ve heard American media incessantly cry and scream bloody murder that the sky is falling, if the U.S. government cannot raise the debt ceiling, and if they cannot that it will be hell on earth essentially.
To get right down to brass tacks, this has been nothing but an onslaught of fear porn and hysteria, theatrics that have no real bearing on reality. In truth, the raising of the debt ceiling is nothing more than a dog & pony show that in actually changes very little of anything at its core, if it is technically raised or not. This is why I have not reported on it until now, but some have asked, so here you go.
Before explaining why this is all just more media antics and daily cosmopolitan drama, we need to define some terms.
As explained by Investopedia, the debt ceiling is simply this:
The debt ceiling is the maximum amount of money that the United States can borrow cumulatively by issuing bonds. The debt ceiling was created under the Second Liberty Bond Act of 1917 and is also known as the debt limit or statutory debt limit.
If U.S. government national debt levels bump up against the ceiling, then the Treasury Department must resort to other extraordinary measures to pay government obligations and expenditures until the ceiling is raised again.
Over time, the debt ceiling has been raised whenever the United States has approached the limit. By hitting the limit and failing to pay interest payments to bondholders, the United States would be in default, lowering its credit rating and increasing the cost of its debt.
Basically the debt ceiling allows Washington’s merry band of idiots and paid-off puppets to continuously borrow into the now without ever willing to pay it down, ever. The United States, courtesy of the elephants and donkeys in the room from all 50 states, have allowed well over $31.8 trillion in federal debt – debt that will clearly never get paid-off, not at those numbers. Of course, these are the numbers they are letting us see. Anyone who thinks like me surely would think that it is must astronomically worse than what the Treasury is willing to let on. After all, the Department of Defense and Pentagon have not been able to pass an audit in a long time, unable to account for trillions of missing funds, but defense is still one of the largest expenditures annually. But I digress.
With the way the media has reported on this potential debt default you’d think the world is going to end. But this is most certainly not the first time these debt default talks have been strung out before, with all this constant shew of bickering of Republicans “talking tough” with Democrats. Of course, when Trump was President the Republicans did not even flinch and hesitate to raise it; but when Biden’s in then they want to act like bulldogs and hold Biden accountable. It’s just the same old nonsense as usual, the same Hollywood script like always, and the masses fall for it all the time. Of course, no one delays when it means their salaries and benefits might be effected: “magic” happens then and the criminals insure they are guaranteed their paid.
The U.S. has not had an actual bona fide, clear and concise budget plan spelled out in quite some time. That’s the whole point here: the country has no budget; it just spends and spends, never looking to pay it down and stop spending more, but rather calls upon the Federal Reserve that are more than happy to issue more debt notes, leading to higher prices of everything and hidden taxes called inflation, along with an ever-weakening dollar that continues to purchase less.
Instead, what this country has are omnibus packages that allow for massive spending packages to fund the latest made-up nonsense and crisis; packed full of garbage and random junk that has zero to do with what the supposedly is intended to do. Trump’s CARES Act and Biden’s Inflation Reduction Act are two shining examples of this.
But as I said before the debt ceiling has been raised before many times over, with some of these raisings being pushed to the perceived “last minute” before the government runs out of money. I remember them well. And again, we have no budget and we have no money, but the media brainwashes people into thinking we do. Investopedia continues by providing some of the history of raising the debt ceilings under Obama:
President Barack Obama faced similar issues during his two terms as president. In the 2011 debt ceiling crisis, Republicans in Congress demanded deficit reductions to approve an increase in the debt ceiling. During this time, U.S. Treasury debt was stripped of its triple-A rating by Standard & Poor’s—a rating it held for more than 70 years.
In 2013, the government was shut down for 16 days after conservative Republicans attempted to defund the Affordable Care Act (ACA) by leveraging the debt ceiling. An agreement to suspend the debt limit was passed within a day, which was when the Treasury was estimated to run out of money.
The debt ceiling was raised again in 2014, 2015, and early 2017. With U.S. debt exceeding $20 trillion for the first time in September 2017, then-President Donald Trump signed a bill extending the debt ceiling to Dec. 8, 2017.
The ceiling was later suspended for 13 months as part of a bill enacted in February 2018. The ceiling came into effect and was increased again in March 2019 when U.S. government debt topped $22 trillion.
In August 2019, then-President Trump signed the Bipartisan Budget Act of 2019, which suspended the debt ceiling through July 31, 2021. The legislation also lifted spending caps on federal agency budgets, while ensuring that the government could pay its bills in the short term.
Suspending the ceiling in this manner eliminated the risk of default for another two years, increasing spending to $320 billion for the 2020 and 2021 fiscal years. The debt ceiling was once again raised, to $31.4 trillion, in December 2021.
But these latest talks are and so-called debates are nonsense. Treasurer Janet Yellen has been saying for a while now that U.S. will run out of money and face default by June 1st, since her initial warnings in January. But then, magically, Yellen just recently pushed back the date to the 5th – somehow just grasping another 5 days out of thin-air. How convenient! This just goes to show you how fake and made-up this drama is. We go for from the 1st to now the 5th on a whim.
Based on the most recent available data, we now estimate that Treasury will have insufficient resources to satisfy the government’s obligations if Congress has not raised or suspended the debt limit by June 5th.
Yellen wrote in a letter
Well, how nice of her to rebalance the books and somehow squeak out an extra five days. It’s a miracle, right? June 1st was just a fantastical arbitrary date they made-up, as did they with June 5th.
Nevertheless, the United States is going to be printing more money regardless if they “raise the debt ceiling.” Again, all these theatrics would imply that the government has some kind of budget, and the donkeys and elephants actually care about the people and want what’s best for the people. Now that is comedy. These people have never hesitated to fund anything.
But to demonstrate how all of this is just theater, Heresy Financial (Joseph Brown) posted a really good video that’s well worth watch that demonstrates how ridiculous these lies are by the media and the government.
As Mr. Brown points out, the government reportedly brought in nearly $4.9 trillion in federal revenue for 2022 – money that was taken from the economy, the taxpayer.
What about the government’s expenditures? The federal government spent just under $6.3 trillion, leaving a negative balance of approximately $-1.3 trillion. Therefore in order to cover their losses they have to borrow the rest, and is then added to the total national deficit. Thus, the debt ceiling – similar to a credit card limit that prevents the user from exceeding that limit – must be raised to cover the deficit, after years of allowing previous debts and deficits to compound.
Brown puts all of this in simple language the media and government does not:
The debt ceiling doesn’t actually mean that the federal government can no longer borrow anymore money. It just means that cannot on net continue to increase the amount of total debt that they have.
If the debt ceiling is not raised, that means they will no longer be able to continue to pile on new debt. If they do take out new debt, it can only be to pay off that old debt, so that total debt they have stays the same.
But the rub comes in, as Brown notes, with borrowing costs in the form of interest rates. Therefore the government may be paying off old debts that were at were 1%, for example, but they are now getting more expensive debt at 5%, for example. The current interest rate is at 5.25% right now, but the word on the Street is more rate hikes are coming, even though Fed Head Jerome Powell has indicated a pause. Because of the rate hikes, it’s forecast that the payments on the debt will continue to cost more and more. All of this means that the government will have to pay hundreds of billions more in just interest payments, but can still take on new debt to pay off the old debt, as long as they do not takeout and incur more new debt: the only new costs would be the additional interest payments they have to make. They can borrow more but not more than what they are already paying off.
When it’s all said and done this year the government will have to spend around $4 trillion after the costs to pay the interest are subtracted from their income from taxes. The fix is quite simple: return to the “normal” spending levels as scene in 2017 before all the massive debt creation packages began to be piled on, none more so seen in 2020 and thereafter. These spending packages are far from normal, but the problem is the government, the markets, the banks, and the consumers have begun to become accustom to these massive omnibus and spending packages.
“All we have to do is return to normal,” Brown states. It is not a massive cut: it is simply cutting off the extra trillions that have been spent these past years. We have more than enough, and the people hollering about raising the debt ceiling are being disingenuous per usual.
Do you understand what this means? For all the people out there crying that we are going to default on our debt – no we’re not!
Put very simply: if Congress does not raise the debt ceiling, the federal government will not default on its debt, it will simply have to stop spending money in some of the new areas that has started spending money since 2020.
If the debt ceiling does not get raised, less government spending will happen, the deficit will disappear, and the American people will go on living just as they always have. Nothing will change for 99% of Americans. If fact, economically speaking, life will probably get much better for most Americans seeing that the government becomes a smaller burden on the backs of the American household;
And the last thing politicians want are for its constituents to realize they don’t them, because the government wants dependents so they can increase its power.
Brown concluded
Give the video a watch, it’s well worth your time.
One commentor on the video put it best: “Impossible to default when you create unlimited funny money. They are always defaulting through inflation. They have some theater, then make a deal and as always we get screwed.” -Amen, well said.
The lying crooks in the government and media are making this stuff up as they go. They’ll be printing money for everything and anything no matter what, so raising the ceiling or not seems to be sacrificial and theatrical than anything else. It’s a big club and we ain’t in it. Rinos and Dinos, it makes no difference. Just print into infinity and oppress the serfs.
Since that video was made a deal was supposedly between Biden and Republican House Speaker Mitch McCarthy. Ah, now it makes sense why Yellen backed the date up!
This deal would increase the debt ceiling by another $4 trillion by the end of 2025!
Here are the main parts of the deal (not including all the other hidden bull that will packed away in the package that has zero to do with raising the debt ceiling, that we won’t discover until years later):
- Timing: the debt limit extension would last past 2024. This is proposed so that Congress would not need to address the issue prior to the November 2024 presidential election. No budget caps after 2025;
- IRS funding: both parties agreed to secure $80 billion in new funding for the Internal Revenue Service to enforce the tax code (i.e. conduct more audits, hire new agents, update its software, etc.);
- Defense spending: the agreement is expected to boost defense spending to around $885 billion
- Covid funding: parties agreed to clawback unused Covid funds estimated to be between $50 billion and $70 billion;
- Green initiatives: parties agreed to new rules to make it easier for energy projects – including fossil-fuel based ones – to gain permit approva
- Government spending: the agreement cuts spending by $50 billion with non-defense discretionary spending capped at current year levels in 2024; will increase 1% in 2025;
- Social programs: new stricter work requirements on low-income people who receive food assistance.
What was McCarthy justification? He said, “We let government grow, but at a slower rate.” Oh my, how thoughtful of him!
But will Republicans accept it? So far many have already skewered it before it has been officially presented to Congress; but that’s honestly irrelevant. More than likely they’ll capitulate after the bribes start flowing. Go figure that that this deal was announced on Memorial Day Weekend; when Americans are out on holiday traveling, barbequing, watching the Indianapolis 500, and more. Dirty tricks as usual.
Be prepared for if in the event the government “defaults” for a few days before the package is passed by the House and Senate, just to rattle the markets and financial ecosphere. What Brown of Heresy Financial said is spot on: they want dependency, not relaxation on government growth and inflation cooling off.
Like I always say: if it’s in the media, it’s there for a reason, and that reason is to deceive and distract.
Be not deceived: evil communications corrupt good manners.
1 Corinthians 15:33
The rich ruleth over the poor, and the borrower is servant to the lender.
Proverbs 22:7
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
The WinePress needs your support! If God has laid it on your heart to want to contribute, please prayerfully consider donating to this ministry. If you cannot gift a monetary donation, then please donate your fervent prayers to keep this ministry going! Thank you and may God bless you.
Thank you for this article. It makes total sense~
agreed! fearmongering tactics to break people down.
Turn off the tv’s and tune out of msm.
Find a real source ….. and refuel in God’s Holy precious word. its water to the soul:)
great work Jacob!
$4.9 trillion. Hmm, wonder where that might go?
Bryan Denlinger (Born Again Barbarian) has a new study, “American Slavery Never Ended”, mentioning the debt ceiling, but more so on the system of debt, mortgage, usury, gold and precious metals.