House Speaker Kevin McCarthy continues to negotiate on the debt ceiling with the Biden White House, Dems and media are sounding “default” alarms:
Yellen doubles down on June deadline to avoid US debt defaulthttps://t.co/5CaPvURnrw
— FOX Business (@FoxBusiness) May 24, 2023
Tom Elliot has a great thread pointing out what really has the Dems in a panic, and it isn’t “default” concerns:
Here's the real reason Democrats are desperate to raise the debt ceiling:
When, next week, the Treasury starts taking in less than it's scheduled to distribute, many progressives claim the U.S. will default. But as I've been explaining over the last couple weeks, this is false. pic.twitter.com/Leyg5tqgA6
— Tom Elliott (@tomselliott) May 24, 2023
“This is false” can easily accompany just about anything the Dems and lib media are pushing these days, and the “default” claims are no different:
The CBO projects 2023 interest on the debt will run $640B. 2023 federal tax receipts are estimated to be $4.6 trillion (7x more than needed to avoid default). Federal law & the Constitution require creditors be paid in full, whereas discretionary spending is merely “allocated”
— Tom Elliott (@tomselliott) May 24, 2023
When revenues can’t meet expenditures, the president is the authority on which payments are made. If anyone’s “holding the economy hostage,” it’s Democrats, who are threatening default as leverage against Republicans to expand borrowing for unrelated wasteful spending. pic.twitter.com/0DleMLSX3F
— Tom Elliott (@tomselliott) May 24, 2023
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The media keeps quoting Janet Yellen’s predictions and assurances, and she’s the Treasury Secretary who told everybody that inflation would be “transitory” so her claims should be taken with a grain of salt.
Why? Well, without more debt, Democrats will need to start paring back discretionary spending (which incidentally is what a majority of Americans want them to do, per a CNN poll). Democrats are nonetheless refusing, and the reason's obvious:
— Tom Elliott (@tomselliott) May 24, 2023
The thought of “paring back spending” makes Democrats sweat and begin to hyperventilate in abject panic.
The $1.2T Build Back Better bill makes it rain — all over Dems' "green energy" donor base. The $400B CHIPs Act likewise scratches the back of America's most profitable (and staunchly progressive) industry, showering tech companies with hundreds of billions in unnecessary handouts pic.twitter.com/tc2mKtET4x
— Tom Elliott (@tomselliott) May 24, 2023
The $2T American Rescue Plan similarly rewards teachers unions for their unwavering support of Democrats.
What do these beneficiaries of Dems' largesse do w/ these trillions of $? In large part they return the cash to Democratic officeholders in the form of campaign donations. pic.twitter.com/wWRjGEfmZm
— Tom Elliott (@tomselliott) May 24, 2023
Ah yes, the coveted political “circle of life” is being threatened.
The debt ceiling, then, means this gravy train is forced to return to the station. The cycle of crony capitalism & corruption is temporarily disrupted. pic.twitter.com/TfFkDHngvD
— Tom Elliott (@tomselliott) May 24, 2023
The Democrats want you to panic over this, but it’s projection.
Without raising the debt ceiling, there will be no default. The only "crisis" will be for Democrats, who will need to get more creative in their attempts at laundering tax dollars back into their own pockets. pic.twitter.com/98zC2DiMUG
— Tom Elliott (@tomselliott) May 24, 2023
The crisis is not the debt ceiling. The crisis is the debt itself. pic.twitter.com/qSwS0zgeGg
— Tom Elliott (@tomselliott) May 24, 2023
Bingo, and well done!
the Build Back Better budget is in jeopardy…
Let’s default and see what happens🍿 https://t.co/2Ly1G4BRoj
— Mathew (@mrnuu) May 24, 2023
Excellent read if you wanna stop falling for the BS https://t.co/7PJsO8LFeT
— Bajan Bambino 🇺🇸🇧🇷 (@Bajan_Bambino) May 24, 2023
Excellent explainer here @tomselliott https://t.co/ZRgCbCAqF6
— Rob Schmitt (@SchmittNYC) May 24, 2023
The attempts to make it sound like going way more than $32 trillion in debt without spending cuts is only the “responsible” thing to do are laughable.
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