There are a lot of threats facing America these days.
One is the threat of fiscal collapse.
Mid-to-long-term, America’s economic system is increasingly unsustainable. We’re running a $33 trillion national debt; our actual national debt, including unfunded liabilities, runs another $80 trillion over the next 75 years. Virtually all of those figures are driven by Medicare and Social Security shortfalls. This means, sooner or later, we’re going to have to radically increase taxes, cut benefits, or inflate our currency.
Another threat is the threat of foreign aggression.
The United States is lucky in that we are surrounded by an ocean on one side, Mexicans to the South, and Canadians to the North.
But that doesn’t mean we’re invulnerable. As the world becomes a more dangerous place — as American power recedes — we will feel that everywhere from our pocketbook to our military budget. American hegemony has created a global economy which has paid off for the American consumer in extraordinary ways. That can easily be reversed — and indicators are, it will be.
A third thread is the threat of internal moral collapse.
Indeed, this threat is the chief factor behind the first two threats. As our communities die, our local institutions lose credibility and loyalty, we stop having children, and our economy turns upside down. The government grows, but the population that has to fund it doesn’t; government spending increases, but the population supporting it doesn’t. As the post-American future takes hold at home, it will similarly take hold abroad, with our enemies ready to fill the gap.
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That last threat is the truly frightening one.
It is the reason for America’s polarized politics: We once shared basic values, particularly at the local level, but now, those values have fallen away, replaced with hatred and rage at Christians and white Americans.
Take, for example, James Carville. Carville is a Clintonian political voice and a person who has routinely urged the Democratic Party to move away from its most extreme and radical positions, understanding they are electoral poison. But now, he has apparently decided that the Republican Party in general is a threat to the United States — that it is a Christian nationalist party.
What does he mean by that term? Apparently, he doesn’t mean that many Republicans prefer to see a revitalized church at the center of American life, a proposition with which I wholeheartedly agree as an Orthodox Jew. No, he means the Republican Party is — in the words of far-Left Daily Kos founder, Markos Moulitsas — an American Taliban.
Carville <a href="https://twitter.com/JCNSeverino/status/1731684523040014751" target="_blank" rel="noopener">said</a> on Bill Maher’s show on Friday night, “(House Speaker) Mike Johnson and what he believes is one of the greatest threats we have today to the United States. I know these people. (Christian nationalists). This is a bigger threat than Al Qaeda to this country. … They have the Speaker of the House; they got at least two Supreme Court Justices, maybe more. Don’t kid yourself.”
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Unhinged:
Democratic strategist James Carville claimed that Speaker Mike Johnson and “at least two Supreme Court justices” are Christian nationalists who represent a bigger threat to the United States than Al-Qaeda terrorists. <a href="https://t.co/hANiHUcBpB">pic.twitter.com/hANiHUcBpB</a>
&mdash; Carrie Severino (@JCNSeverino) <a href="https://twitter.com/JCNSeverino/status/1731684523040014751?ref_src=twsrc%5Etfw">December 4, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Now, this is truly nutty stuff. In Carville’s view, two Supreme Court justices and the Speaker of the House are leading the charge for a Christian theocracy. And they are a bigger threat than the terrorist group responsible for September 11.
Carville isn’t the only Democratic voice who sees traditional Republicans as the enemy. There is also grifter extraordinaire Ibram X. Kendi, who says his fellow Americans are generally white supremacists.
This, apparently, will be the Democratic Party’s campaign in 2024: Republicans are Christian theocrats and white supremacists. The entire Republican Party is dominated by a desire for white Christian fascism — or something like that.
The response, presumably, would be an alliance of the secularists and people of color. Not shockingly, that’s precisely the coalition the Democratic Party seems to be wooing.
And they are doing so with ugly scare tactics.
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That’s why the Atlantic is dedicating its first issue of 2024 to suggesting that a vote for Donald Trump in 2024 is a vote for a fascist regime. A note from official Obama jockstrap-carrier Jeffrey Goldberg, editor of the rag, reads, “I encourage you to read all of the articles in this special issue carefully (though perhaps not in one sitting, for reasons of mental hygiene). Our team of brilliant writers makes a convincingly dispositive case that both Trump and Trumpism pose an existential threat to America and to the ideas that animate it.”
Yes, according to the Atlantic, if you vote for Trump, you have handed away America’s future.
This sort of messaging is being promoted by Republicans experiencing “Strange New Respect™” (i.e., the respect you receive when you start mimicking Democratic lines), like Liz Cheney, who is mirroring the <a href="https://www.cbsnews.com/news/liz-cheney-tells-cbs-news-sunday-morning-that-the-u-s-is-sleepwalking-into-a-dictatorship/" target="_blank" rel="noopener">doom-mongering</a> of the Left.
Ironically, this very alarmism is one of the root threats to America. 
Countries in which both sides start speaking about how the next election is the last election — about how their political opponents, if they win, mean the end of the country — are in serious danger. That sort of scaremongering may get out votes, but it also sets the house on fire in the name of saving the house. 
Understand, I want Joe Biden to lose. I think he is a terrible president doing dangerous things that will be difficult to rectify. But the end of America is not nigh in 2024 — not unless, ironically, everyone keeps saying it is. The closer both sides draw to the abyss — the more each party says the next election is the last election — the more that fantasy draws closer to reality.
And that is a true threat to the Republic.
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Screenshot 2023-10-26 at 12.39.35 PM copy

Democrats Run Against ‘Whiteness’ And ‘Christian Nationalism’

Democrats Run Against 'Whiteness' And 'Christian Nationalism'

Ben Shapiro

Christians

Donald Trump

MAGA

National Debt

Readers Pass

U.S. Military

White Supremacy

Whiteness

The <a href="https://www.dailywire.com/topic/u-s-senate" target="_blank" rel="noopener">Senate</a> passed a short-term spending bill on Wednesday night that will continue to fund the government at current levels until early 2024. 
The bill, which was first passed in the House with Democrat support, passed in the Senate 87-11. The bill was criticized by some Republicans as it contained no spending cuts and maintained the spending status quo. 
&#8220;Keeping the government is a good outcome, of course, but we have a lot more work to do after Thanksgiving,&#8221; Senate Majority Leader Chuck Schumer (D-NY) <a href="https://www.nbcnews.com/politics/congress/live-blog/government-shutdown-bill-senate-live-updates-rcna125326" target="_blank" rel="noopener">said</a> in a speech after the vote. “I know both sides genuinely care about approving aid to Israel and Ukraine and helping innocent civilians in Gaza. So I hope we can come to an agreement even if neither side gets everything they insist on.&#8221; 
In the House, the stopgap <a href="https://www.dailywire.com/news/johnson-led-house-passes-bill-to-avert-government-shutdown-with-dem-support" target="_blank" rel="noopener">spending bill passed</a> 336-95, with 209 Democrats and 127 Republicans voting for it. Schumer praised the House for not working with the “hard right” and voting to continue government funding. 
&#8220;Obviously, the Republican-led House needed Democratic votes to avoid a shutdown, and I was pleased to see that the speaker was willing to work with Democrats and resisted the siren song of the hard right in the House,&#8221; he <a href="https://www.foxnews.com/politics/schumer-good-night-american-people-senate-passes-bill-averting-government-shutdown" target="_blank" rel="noopener">said</a>. &#8220;And if that continues, we can avoid further shutdowns and finish the work of funding the government.&#8221;
Ten Senate Republicans and Colorado Democratic Sen. Michael Bennet voted against the bill.
The Republicans who <a href="https://twitter.com/ChadPergram/status/1725005666878714176" target="_blank" rel="noopener">voted against</a> it were Sen. Marsha Blackburn (TN), Sen. Mike Braun (IN), Sen. Mike Crapo (ID), Sen. Mike Lee (UT), Sen. Tommy Tuberville (AL), Sen. Rand Paul (KY), Sen. James Risch (ID), Sen. Eric Schmitt (MO), Sen. Rick Scott (FL), and Sen. J.D. Vance (OH). 
An amendment by Paul to cut spending and funding for the IRS was <a href="https://www.senate.gov/legislative/LIS/roll_call_votes/vote1181/vote_118_1_00311.htm" target="_blank" rel="noopener">defeated</a> 65-32. The amendment would have reduced “continuing funding by 15 percent, except for the Department of Defense, military construction, and the Department of Veterans Affairs and to rescind $30,000,000,000 from enforcement funds provided to the Internal Revenue Service.”
After passage of the continuing resolution in the House on Tuesday, some Republicans in the House <a href="https://www.dailywire.com/news/house-republicans-help-block-spending-bill-after-bipartisan-stopgap-passes" target="_blank" rel="noopener">have blocked passage</a> of additional spending bills, saying that conservative voters did not want them to continue to kick spending reform down the road. 
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In September the U.S. national <a href="https://www.dailywire.com/news/u-s-credit-rating-changed-from-stable-to-negative-as-national-debt-balloons" target="_blank" rel="noopener">debt </a>eclipsed $33 trillion, and is expected to exceed $50 trillion by 2033. 
House Speaker Mike Johnson (R-LA) said that the two-step continuing resolution that <a href="https://www.congress.gov/bill/118th-congress/house-bill/6363">funds certain federal agencies</a> through the middle of January while others would get money through early February was necessary. 
“This two-step continuing resolution is a necessary bill to place House Republicans in the best position to fight for conservative victories. The bill will stop the absurd holiday-season omnibus tradition of massive, loaded up spending bills introduced right before the Christmas recess,” he <a href="https://twitter.com/SpeakerJohnson/status/1723443749668184161" target="_blank" rel="noopener">said</a>. “Separating out the CR from the supplemental funding debates places our conference in the best position to fight for fiscal responsibility, oversight over Ukraine aid, and meaningful policy changes at our Southern border.”
Editors Note: A previous version of this article incorrectly said that Sen. Markwayne Mullin voted against the stopgap spending bill. He voted for it.

Senate Takes Up Funding Bill After House Passage

Senate Overwhelmingly Votes To Continue Government Funding With No Spending Cuts

Chuck Schumer

Congress

Politics

Rand Paul

spending

U.S. Senate

The U.S. credit rating was given a negative outlook by Moody’s Investor Service in part due to the ballooning <a href="https://www.dailywire.com/topic/national-debt" target="_blank" rel="noopener">U.S. debt</a>. 
Moody’s, a global credit rating provider, made the projection on Friday, changing its assessment of the American credit from stable to negative. The news comes as spending and inflation have remained high throughout the Biden administration. 
“In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues,” Moody’s <a href="https://www.cnbc.com/2023/11/10/moodys-cuts-usa-outlook-to-negative-citing-higher-interest-rates-and-deficits.html" target="_blank" rel="noopener">said</a> in a statement. “Moody’s expects that the U.S.’ fiscal deficits will remain very large, significantly weakening debt affordability.”
The rating’s agency also said the decision was based in part on political polarization. 
“Continued political polarization within U.S. Congress raises the risk that successive governments will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability,” Moody’s said. 
The Biden administration, which has pushed massive green energy and Ukraine spending packages, pinned the blame on Republicans.
“Moody’s decision to change the U.S. outlook is yet another consequence of congressional Republican extremism and dysfunction,” White House Press Secretary Karine Jean-Pierre <a href="https://www.nytimes.com/2023/11/10/business/moodys-negative-credit-outlook.html" target="_blank" rel="noopener">said</a>. 
Deputy Treasury Secretary Wally Adeyem claimed that the American economy remained “strong,” disagreeing with Moody’s decision. 
House Speaker Mike Johnson (R-LA) <a href="https://twitter.com/SpeakerJohnson/status/1723170118417404352" target="_blank" rel="noopener">said</a> that Moody’s actions were a result of the “Democrats reckless spending agenda.”
“Our $33.6 trillion debt is unsustainable and poses a danger to our national security and economy,” Johnson said. “Meanwhile, the runaway inflation and soaring interest rates that have been the cornerstone of &#8216;Bidenomics&#8217; have hammered families&#8217; pocket books and made the Treasury&#8217;s costs for borrowing spiral out of control.”
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“This is why the Administration and their congressional allies have lost the faith of the American people,” Johnson added, saying that Republicans were working to restore fiscal restraint to Congress. 
In September the U.S. national debt <a href="https://www.dailywire.com/news/us-national-debt-surpasses-33t-for-first-time-in-history" target="_blank" rel="noopener">eclipsed $33 trillion</a>,  just months after it hit $32 trillion in mid-June. 
“Instead of hearing about solutions, we hear promises of which programs our leaders are unwilling to touch and which taxes they are unwilling to raise,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said. “That kind of talk is not only pandering, but it’s also downright irresponsible when we have a mess like this on our hands.”
Recent <a href="https://finance.yahoo.com/news/us-government-debt-track-surpass-042125090.html#:~:text=US%20public%20debt%20outstanding%20currently,investment%20strategist%20Michael%20Hartnett%20said." target="_blank" rel="noopener">projections estimate</a> that the U.S. debt will exceed $50 trillion by 2033

President Biden Delivers Remarks To UAW Autoworkers In Illinois

U.S. Credit Rating Changed From ‘Stable’ To ‘Negative’ As National Debt Balloons

Biden Administration

Economy

Joe Biden

Karine Jean-Pierre

Mike Johnson

America&#8217;s gross national debt surpassed $33 trillion for the first time in U.S. history on Monday as Washington, D.C., faces a potential government shutdown over federal spending.
Data reportedly published by the Treasury Department showed the national debt — which measures how much the federal government owes security holders — hit $33.04 trillion, just months after it eclipsed $32 trillion in mid-June.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a <a href="https://www.crfb.org/press-releases/national-debt-reaches-33-trillion-adds-1-trillion-debt-3-months" target="_blank" rel="noopener">news release</a> that the latest numbers reached &#8220;a new milestone that no one will be proud of.&#8221;
&#8220;Debt held by the public, meanwhile, recently surpassed $26 trillion,&#8221; MacGuineas said. &#8220;We are becoming numb to these huge numbers, but it doesn&#8217;t make them any less dangerous.&#8221;
The Congressional Budget Office confirmed last week that the underlying deficit would likely double from last fiscal year to this one, according to MacGuineas. The office reportedly <a href="https://fortune.com/2023/09/18/janet-yellen-national-debt/" target="_blank" rel="noopener">warned</a> in June that high interest rates and rising national debt could make net interest payments spike to 6.7% of GDP by 2053, according to Fortune.
&#8220;Instead of hearing about solutions, we hear promises of which programs our leaders are unwilling to touch and which taxes they are unwilling to raise,&#8221; she said. &#8220;That kind of talk is not only pandering, but it&#8217;s also downright irresponsible when we have a mess like this on our hands.&#8221;
The announcement comes as House Republicans proposed a short-term plan on Sunday that would temporarily fund the government through October 31 to avoid a shutdown and impose an 8% spending cut on federal agencies, excluding defense funding, veterans affairs, and disaster relief, <a href="https://www.foxbusiness.com/economy/us-national-debt-hits-33t-first-time-history" target="_blank" rel="noopener">according</a> to Fox Business.
But the measure received opposition from fellow GOP lawmakers while Democrats are unlikely to support it.
Michael A. Peterson, the chief executive of the budget watchdog group Peter G. Peterson Foundation, raised the alarm of a looming federal crisis.
&#8220;As we have seen with recent growth in inflation and interest rates, the cost of debt can mount suddenly and rapidly,&#8221; Peterson said, <a href="https://www.nytimes.com/2023/09/18/us/politics/us-national-debt.html" target="_blank" rel="noopener">according</a> to The New York Times. &#8220;With more than $10 trillion of interest costs over the next decade, this compounding fiscal cycle will only continue to do damage to our kids and grandkids.&#8221;
Mark Spitznagel, founder of the hedge fund Universa Investments, told Fortune in August that we&#8217;re living through the &#8220;greatest credit bubble in human history&#8221; after warning of a potential impact from the debt increase.
&#8220;We&#8217;ve never seen anything like this level of total debt and leverage in the system,&#8221; Spitznagel said. &#8220;It&#8217;s an experiment. But we know that credit bubbles have to pop. We don&#8217;t know when, but we know they have to.&#8221;
U.S. Treasury Secretary Janet Yellen <a href="https://www.cnbc.com/2023/09/18/first-on-cnbc-cnbc-transcript-united-states-treasury-secretary-janet-yellen-speaks-with-cnbcs-sara-eisen-on-squawk-on-the-street-today.html" target="_blank" rel="noopener">told</a> CNBC on Monday that she isn&#8217;t worried about the staggering debt, claiming that the net interest as a share of GDP remains under control by the federal government.
&#8220;And even with the rise we have seen in interest rates, that remains at a very reasonable level,&#8221; Yellen said, admitting that U.S. officials need to be careful about spending going forward in order to stay on this &#8220;sustainable course.&#8221;
&#8220;Certainly, greater deficit reduction is possible,&#8221; she added. &#8220;The President has proposed a series of measures that would reduce our deficits over time while investing in the economy, and this is something we need to do going forward.&#8221;
President Joe Biden <a href="https://www.dailywire.com/news/biden-signs-bill-to-increase-debt-ceiling-avoid-federal-default" target="_blank" rel="noopener">signed</a> the Fiscal Responsibility Act in June that will suspend the debt limit until January 2025 and implement restraints on spending that the Congressional Budget Office estimated would reduce budget deficits by $1.5 trillion over the next decade.

US-POLITICS-ECONOMY-DEBT

US National Debt Surpasses $33T For First Time In History

Janet Yellen

Treasury Department

Washington D.C.

President <a href="https://www.dailywire.com/topic/joe-biden" target="_blank" rel="noopener">Joe Biden</a> signed a bill into law on Saturday to avoid a default on the federal government’s debt by raising the <a href="https://www.dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a>.
The bill, known as the Fiscal Responsibility Act, <a href="https://www.dailywire.com/news/senate-passes-debt-ceiling-bill-to-avert-default-ahead-of-x-date" target="_blank" rel="noopener">will suspend</a> the debt limit until January 2025 and implement restraints on spending that the Congressional Budget Office estimated would reduce budget deficits by $1.5 trillion over the next decade. 
“I just signed into law a bipartisan budget agreement that prevents a first-ever default while reducing the deficit, safeguarding Social Security, Medicare, and Medicaid, and fulfilling our [sacred] obligation to our veterans,” Biden said on Twitter. “Now, we continue the work of building the strongest economy in the world.”
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I just signed into law a bipartisan budget agreement that prevents a first-ever default while reducing the deficit, safeguarding Social Security, Medicare, and Medicaid, and fulfilling our scared obligation to our veterans.   Now, we continue the work of building the strongest… <a href="https://t.co/42HIFBy8Y9">pic.twitter.com/42HIFBy8Y9</a>
&mdash; President Biden (@POTUS) <a href="https://twitter.com/POTUS/status/1665060615000322050?ref_src=twsrc%5Etfw">June 3, 2023</a></blockquote>
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The bill was hashed out through a deal between House Speaker <a href="https://www.dailywire.com/topic/kevin-mccarthy" target="_blank" rel="noopener">Kevin McCarthy</a> (R-CA) and Biden. It passed both the House and the Senate with more Democrat votes in favor than Republican, with some conservative lawmakers saying that it didn’t cut down on spending enough. 
In the House, 149 Republicans joined 165 Democrats in <a href="https://www.dailywire.com/news/house-passes-mccarthy-biden-debt-ceiling-compromise-bill" target="_blank" rel="noopener">voting for</a> the bill, while in the Senate 17 Republicans joined 46 Democrats in supporting the measure. 
The bill was supported by leadership in both parties, including Senate Majority Leader Chuck Schumer and McCarthy in the House. 
“We prevented a catastrophic default that would have decimated our economy and [inflicted] immense pain on families,” Schumer <a href="https://twitter.com/SenSchumer/status/1664470685224140801" target="_blank" rel="noopener">tweeted</a>. “We preserved the lion’s share of the historic investments we made. We took off the table the worst parts of the MAGA Republican plan that would have hurt families.”
The bill was <a href="https://www.dailywire.com/news/a-disaster-republican-senators-voice-opposition-to-mccarthy-biden-debt-ceiling-deal" target="_blank" rel="noopener">strongly opposed</a> by many Republican senators, including Sen. Mike Lee (R-UT) and Sen. Rand Paul (R-KY). 
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“I think the Biden-McCarthy debt deal is a disaster for the country. It does not significantly change the trajectory of the debt. Each year we’ll spend more money and the debt will grow $4 trillion in two years. It’s not very conservative,” Paul <a href="https://www.kktv.com/video/2023/05/31/sen-rand-paul-reacts-deal-debt-ceiling/">told</a> reporters this week.
In the House, the bill was opposed by many in the House Freedom Caucus, who took issue with many aspects of the deal, including the provision that punts the debt ceiling into 2025. 
McCarthy declared the deal a win for conservatives. “Maybe it doesn’t do everything for everyone, but this is a step in the right direction that no one thought that we would be able to today,” <a href="https://www.dailywire.com/news/speaker-kevin-mccarthy-touts-wins-conservatives-secured-in-tentative-debt-ceiling-agreement" target="_blank" rel="noopener">McCarthy said</a>. “I’ll debate this bill with anybody. Is it everything I wanted? No, because we don’t control all of it. But it is the biggest rescission in history. It is the biggest cut Congress has ever voted for in that process.”

President Biden Addresses The Nation On Averting Default And The Bipartisan Budget Agreement

Biden Signs Bill To Increase Debt Ceiling, Avoid Federal Default

Debt Ceiling

Freedom Caucus

Kevin McCarthy

Daily Wire Editor Emeritus <a href="https://www.dailywire.com/topic/ben-shapiro" target="_blank" rel="noopener">Ben Shapiro</a> contended that the recent <a href="http://dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a> agreement between President <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Joe Biden</a> and House Speaker <a href="http://dailywire.com/topic/kevin-mccarthy" target="_blank" rel="noopener">Kevin McCarthy</a> (R-CA) occurs in the context of both Democrats and Republicans spending far beyond the nation’s means.
The debt ceiling, a statute established by <a href="http://dailywire.com/topic/congress" target="_blank" rel="noopener">Congress</a> that prevents the government from spending beyond a predetermined <a href="http://dailywire.com/topic/national-debt" target="_blank" rel="noopener">national debt</a> limit of $31.4 trillion, exceeded the threshold earlier this year, provoking concerns that the nation will default on loans within the next week at the earliest. McCarthy and Biden reached a <a href="https://docs.house.gov/billsthisweek/20230529/BILLS-118hrPIH-fiscalresponsibility.pdf" target="_blank" rel="noopener">deal</a> which, among other measures, suspends the debt limit until 2025, caps spending growth for the next two years in areas except for defense and veterans, and expands food stamp work requirements for those between 49 and 54 years old.
Republican members of the House from both the more moderate and conservative factions, including Rep. Nancy Mace (R-SC) and Rep. Chip Roy (R-TX), have <a href="https://www.dailywire.com/news/nancy-mace-is-a-no-on-debt-ceiling-deal-outsmarted-by-a-president-who-cant-find-his-pants" target="_blank" rel="noopener">expressed</a> severe reservations about the agreement, contending that the deal will normalize higher spending established through pandemic relief measures. Republican leaders, on the other hand, <a href="https://www.speaker.gov/house-gop-leadership-statement-on-the-fiscal-responsibility-act/" target="_blank" rel="noopener">celebrated</a> the deal and said the agreement marks a landmark victory for the conference.
Shapiro <a href="https://twitter.com/benshapiro/status/1663538515005566976" target="_blank" rel="noopener">commented</a> on social media that any spending reform which does not significantly amend the welfare system is ultimately inconsequential. “I agree with every single critique of the shortcomings of the debt limit deal,” he remarked. “In a rational world, we wouldn&#8217;t just be fighting over discretionary spending, we&#8217;d be restructuring entitlements.”
The bestselling author and podcast host added that the agreement is a failure “compared to the ideal,” characterizing the compromise between Biden and McCarthy as “a giant bag of failure mixed with a heaping helping of bankruptcy.” He said that in comparison to the proposed debt ceiling increase with no spending reforms, however, the deal could be considered a “success.”
Shapiro also noted that many conservatives are “more agitated over McCarthy&#8217;s deal than they were with the fact that with Trump as president and full control of Congress, Republicans increased spending.” He <a href="https://twitter.com/benshapiro/status/1663563348649168896" target="_blank" rel="noopener">contended</a> that “every fiscal debate is basically about where to place the deck chairs on the Titanic” unless entitlement spending is addressed.
“Politicians all know this. But they&#8217;re incentivized to play kabuki theater over all the rest of the spending so as to avoid the third rail of American politics,” he said. “They kick the can down the road. The iceberg is right there, but they&#8217;re screaming about where the chairs should go.”
Social Security, Medicare, and other health initiatives constituted 46% of the federal budget during the last fiscal year, according to <a href="https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/" target="_blank" rel="noopener">data</a> from the Treasury Department. In order to balance the budget while exempting defense, veteran benefits, Social Security, and Medicare from cuts, all other federal spending would have to be reduced by 85%, according to an <a href="https://www.dailywire.com/news/federal-spending-must-be-cut-26-to-balance-budget-even-more-to-keep-core-social-defense-programs-intact-analysis" target="_blank" rel="noopener">analysis</a> from the Committee for a Responsible Federal Budget.
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Biden and McCarthy each <a href="https://www.dailywire.com/news/sparing-the-sacred-cow-republicans-and-democrats-refuse-to-touch-social-security-as-debt-crisis-looms" target="_blank" rel="noopener">started</a> the debt limit negotiations with a commitment to refrain from considering reforms to entitlements. Social Security, as Shapiro observed, has long been considered the third rail of American politics: the vast majority of survey respondents have historically said they want benefits from the program retained, even as nearly half are concerned about continued funding for the program, according to an <a href="https://news.gallup.com/opinion/polling-matters/258335/social-security-american-public-opinion.aspx" target="_blank" rel="noopener">analysis</a> from Gallup.

Ben Shapiro Reacts To Debt Limit Deal, Hits Both Democrats And Republicans Over Spending Habits

Ben Shapiro Reacts To Debt Limit Deal, Hits Certain Republicans Over Spending Habits

House Republicans

Social Security

Rep. <a href="https://www.dailywire.com/topic/nancy-mace" target="_blank" rel="noopener">Nancy Mace</a> (R-SC) announced on Tuesday that she would not vote in favor of the <a href="http://dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a> deal between President <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Joe Biden</a> and House Speaker <a href="http://dailywire.com/topic/kevin-mccarthy" target="_blank" rel="noopener">Kevin McCarthy</a> (R-CA), contending that <a href="http://dailywire.com/topic/house-republicans" target="_blank" rel="noopener">Republicans</a> were hoodwinked and that the agreement would normalize high spending.
The debt ceiling, a statute established by <a href="http://dailywire.com/topic/congress" target="_blank" rel="noopener">Congress</a> that prevents the government from spending beyond a predetermined <a href="http://dailywire.com/topic/national-debt" target="_blank" rel="noopener">national debt</a> limit of $31.4 trillion, exceeded the threshold earlier this year, prompting concerns that the nation will default on loans within the next week. McCarthy and Biden reached a <a href="https://docs.house.gov/billsthisweek/20230529/BILLS-118hrPIH-fiscalresponsibility.pdf" target="_blank" rel="noopener">deal</a> which, among other measures, suspends the debt limit until 2025, caps spending growth for the next two years in areas except for defense and veterans, and expands work requirements for food stamps for those between 49 and 54 years old.
Mace, broadly considered a moderate among House Republicans, <a href="https://twitter.com/NancyMace/status/1663512972960968707" target="_blank" rel="noopener">revealed</a> that she would vote “no” on the bill because “playing the DC game isn’t worth selling out our kids and grandkids.” She also said that Republicans were “outsmarted by a President who can’t find his pants.”
“This ‘deal’ normalizes record high spending started during the pandemic,” she wrote on social media, observing that normative levels of government spending expanded from $4 trillion before the recession to $6 trillion in the years after the crisis. “It sets these historically high spending levels as the baseline for all future spending.”
The lawmaker concluded that the bill, which is named the Fiscal Responsibility Act, would be “a wash spending-wise” since the “small cut” to discretionary spending will be eclipsed by “large increases in spending elsewhere.”
The arrangement would claw back some $30 billion in pandemic relief funds, roughly matching the $41 billion cut from federal spending in the first year of the bill. Mace also noted that only $1.4 billion of the $80 billion of additional funds recently allocated to the IRS would be removed, while the student debt cancellation plan from the Biden administration would remain intact.
“Washington is, was and always will be lousy at responsibly spending your tax dollars,” she added. “That won’t change unless we demand change.”
The national debt now surpasses $31.7 trillion and serves as a continual damper on economic growth, while elevated interest rates have <a href="https://www.dailywire.com/news/interest-payments-on-the-national-debt-on-pace-to-surpass-military-spending" target="_blank" rel="noopener">weighed</a> on the budget as lawmakers are forced to devote more revenues toward servicing the debt rather than spending on federal programs. An amendment to the debt limit, which can only occur with endorsement from the House, could induce a recession and lead to a <a href="https://www.dailywire.com/news/top-rating-agencies-threaten-u-s-with-credit-downgrade-over-debt-limit-chaos-even-if-a-deal-is-made" target="_blank" rel="noopener">downgrade</a> in the federal government’s credit rating.
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Other lawmakers, including Rep. Chip Roy (R-TX) and Rep. Cory Mills (R-FL), <a href="https://twitter.com/chiproytx/status/1662812623027548162?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1662815021108441088%7Ctwgr%5E4cf4579fa58b8ac051f26d4a306fed84ac85a18a%7Ctwcon%5Es3_&amp;ref_url=https%3A%2F%2Fwww.dailywire.com%2Fnews%2Ftop-conservatives-slam-mccarthy-biden-agreement-with-republicans-like-these-who-needs-democrats" target="_blank" rel="noopener">expressed</a> their <a href="https://twitter.com/CoryMillsFL/status/1663524101409964034" target="_blank" rel="noopener">concerns</a> about the arrangement in recent days. Rep. Pramila Jayapal (D-WA) and Rep. Alexandria Ocasio-Cortez (D-NY), on the other hand, spoke against Biden compromising with Republicans, contending that the move would cause a <a href="https://www.dailywire.com/news/democrat-lawmaker-predicts-backlash-in-the-streets-if-white-house-agrees-to-spending-cut" target="_blank" rel="noopener">backlash</a> among the broader public as some elements of his legislative agenda are potentially redacted.
House Republican leaders, meanwhile, <a href="https://www.speaker.gov/house-gop-leadership-statement-on-the-fiscal-responsibility-act/" target="_blank" rel="noopener">celebrated</a> the deal and said it marks a landmark victory for the conference. “The American people elected House Republicans to stop the out-of-control inflationary spending that has broken family budgets,” they said in a statement. “Today, we secured a historic series of wins worthy of the American people.”

Nance Mace

Nancy Mace Is A ‘No’ On Debt Ceiling Deal: ‘Outsmarted By A President Who Can’t Find His Pants’

Nancy Mace Is A ‘No’ On Debt Ceiling Deal

Nancy Mace

House Speaker <a href="http://dailywire.com/topic/kevin-mccarthy" target="_blank" rel="noopener">Kevin McCarthy</a> (R-CA) dismissed a letter from the <a href="https://www.dailywire.com/topic/freedom-caucus" target="_blank" rel="noopener">House Freedom Caucus</a> on Friday pressing him and other <a href="http://dailywire.com/topic/house-republicans" target="_blank" rel="noopener">Republicans</a> to “hold the line” on a <a href="http://dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a> agreement with President <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Joe Biden</a> which includes spending reforms.
The debt ceiling, a statute established by <a href="http://dailywire.com/topic/congress" target="_blank" rel="noopener">Congress</a> that prevents the government from spending beyond a predetermined <a href="http://dailywire.com/topic/national-debt" target="_blank" rel="noopener">national debt</a> limit of $31.4 trillion, exceeded the threshold earlier this year, prompting fear that the nation will default on loans within the next week. Rep. <a href="https://www.dailywire.com/topic/chip-roy" target="_blank" rel="noopener">Chip Roy</a> (R-TX), a member of the House Freedom Caucus, said in a <a href="https://roy.house.gov/sites/evo-subsites/roy.house.gov/files/evo-media-document/roy_hold-the-line-memo_5.24.23_0.pdf" target="_blank" rel="noopener">letter</a> on Wednesday that his colleagues should continue to push for a deal which includes spending reductions and growth caps, the repeal of multiple Biden administration policies, and elevated work requirements for individuals receiving government assistance.
“While House Republicans are fighting for hard-working American families facing a woke, weaponized government at odds with our way of life,” Roy contended. “President Biden and Democrats have been dragging their feet for weeks to fight for rich liberal elitists who want more spending, more government, more corporate subsidies, and less freedom.”
Roy noted that the reforms were included in the Limit, Save, Grow Act, which recently <a href="https://www.dailywire.com/news/gop-led-house-passes-mccarthys-plan-to-raise-debt-limit" target="_blank" rel="noopener">passed</a> the narrowly divided House and is waiting for approval in the Senate, which is controlled by Democrats. He asserted that each reform is “critical” and affirmed that “none should be abandoned” only to make an agreement on the debt limit.
McCarthy said in a press <a href="https://www.youtube.com/watch?v=gfxV44KZ_TA" target="_blank" rel="noopener">conference</a> on Friday that he is “not at all” concerned with the letter, even as he needs votes from members of the House Freedom Caucus in order to pass legislation. “Unfortunately we’ve got to get a bill that can get through the Senate and signed by the President,” he remarked. “It’s a lot of negotiation, it’s hard, but we’re willing to do the work.”
Members of the House Freedom Caucus have <a href="https://www.dailywire.com/news/house-freedom-caucus-chairman-responds-as-white-house-lobs-spurious-claims-at-spending-cut-proposal" target="_blank" rel="noopener">said</a> they would vote to raise the debt ceiling in exchange for a framework that returns expenditures to fiscal year 2022 levels, increases the debt limit only for the next year, caps annual spending growth at 1% over the next decade, and repeals policies such as student debt forgiveness and increased funds for the IRS. The lawmakers previously delayed providing their votes to McCarthy as he sought to succeed former House Speaker Nancy Pelosi (D-CA) earlier this year, forcing McCarthy to <a href="https://www.dailywire.com/news/here-are-the-concessions-house-speaker-kevin-mccarthy-gave-to-republican-holdouts-to-win-their-support" target="_blank" rel="noopener">commit</a> to advance a budget framework which introduces various spending reforms.
The national debt now surpasses $31.7 trillion and serves as a continual damper on economic growth, while elevated interest rates have <a href="https://www.dailywire.com/news/interest-payments-on-the-national-debt-on-pace-to-surpass-military-spending" target="_blank" rel="noopener">weighed</a> on the budget as lawmakers are forced to devote more revenues toward servicing the debt rather than spending on federal programs. Failure to amend the debt limit, on the other hand, could induce a recession and lead to a <a href="https://www.dailywire.com/news/top-rating-agencies-threaten-u-s-with-credit-downgrade-over-debt-limit-chaos-even-if-a-deal-is-made" target="_blank" rel="noopener">downgrade</a> in the federal government’s credit rating.
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Democratic officials have meanwhile <a href="https://www.dailywire.com/news/house-democrat-leader-claims-republicans-want-to-crash-the-economy-so-trump-will-be-elected" target="_blank" rel="noopener">contended</a> in recent weeks that Republicans are engaged in brinkmanship as they call for spending reforms in addition to a temporary increase in the debt limit, while Republicans have noted that Democrats <a href="https://www.speaker.gov/reasonable-republicans-and-default-democrats/" target="_blank" rel="noopener">waited</a> more than three months to resume negotiations, which started in February.

McCarthy Dismisses Freedom Caucus Letter Urging Him To ‘Hold The Line’ On Spending Reforms

McCarthy Dismisses Freedom Caucus Letter Urging Him To 'Hold The Line' On Debt Limit

Chip Roy

Two rating agencies placed the United States on a negative watch over recent negotiations to amend the <a href="http://dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a> between President <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Joe Biden</a> and House Speaker <a href="http://dailywire.com/topic/kevin-mccarthy" target="_blank" rel="noopener">Kevin McCarthy</a>.
The debt ceiling, a statute established by <a href="http://dailywire.com/topic/congress" target="_blank" rel="noopener">Congress</a> that prevents the government from spending beyond a predetermined <a href="http://dailywire.com/topic/national-debt" target="_blank" rel="noopener">national debt</a> limit of $31.4 trillion, exceeded the threshold earlier this year. Republicans want to link an increase in the debt limit with spending caps, while Democrats say they prefer separate processes for debt limit negotiations and budget reforms, a debate which occurs even as the government nears <a href="https://www.dailywire.com/news/yellen-says-nation-could-face-debt-default-in-less-than-three-weeks" target="_blank" rel="noopener">default</a> as soon as June 1.
Fitch Ratings, considered one of the three most influential credit rating agencies in the nation, said in an <a href="https://www.fitchratings.com/research/sovereigns/fitch-places-united-states-aaa-on-rating-watch-negative-24-05-2023" target="_blank" rel="noopener">outlook</a> on Wednesday that the AAA rating currently held by the U.S. could be reconsidered because of “increased political partisanship that is hindering reaching a resolution to raise or suspend the debt limit.” The firm, which nevertheless anticipates that the debt ceiling will be amended before the estimated deadline, added that persistent failures to “meaningfully tackle medium-term fiscal challenges that will lead to rising budget deficits and a growing debt burden” also have negative implications for creditworthiness.
“The absence of a medium-term fiscal framework and a complex budgeting process has contributed to the failure to reverse successive debt increases caused by economic shocks and other fiscal accommodations,” the firm added. “Political partisanship has brought about repeated debt-limit brinkmanship and led to near-default episodes that could erode confidence in the government&#8217;s repayment capacity.”
Fitch also noted that unconventional mechanisms cited by Democrats to address the fiscal instability, such as <a href="https://www.dailywire.com/news/calls-to-mint-trillion-dollar-coin-resurface-as-government-faces-debt-crunch" target="_blank" rel="noopener">minting</a> a trillion-dollar platinum coin or <a href="https://progressives.house.gov/_cache/files/b/d/bd03b58a-965d-4af8-9902-9acd070ea71f/40864F2E443B71B11BE64733172C450C.cpc-letter-on-14th-amendment-and-debt-ceiling-5-19-23.pdf" target="_blank" rel="noopener">invoking</a> the Fourteenth Amendment to declare the debt limit unconstitutional, are “unlikely to be consistent” with a AAA rating. The company had <a href="https://www.dailywire.com/news/pointing-to-national-debt-ratings-agency-issues-negative-outlook-for-us-aaa-creditworthiness" target="_blank" rel="noopener">issued</a> a negative outlook two years ago over the rising national debt.
DBRS Morningstar, another credit rating agency, issued a similar <a href="https://www.dbrsmorningstar.com/research/414464/dbrs-morningstar-places-united-states-ratings-under-review-with-negative-implications" target="_blank" rel="noopener">outlook</a> and added that “the prospect of repeated debt ceiling standoffs in a polarized political environment” could lead to a decision that the nation is no longer worthy of a AAA rating “even if Congress ends up increasing the debt ceiling” before June 1.
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Both firms acknowledged that the U.S. remains highly resilient relative to other developed economies, rendering the nation a global bellwether with respect to reserve currency status and government bonds widely considered to be safe-haven assets. The national debt, on the other hand, now surpasses $31.7 trillion and serves as a continual damper on economic growth, while elevated interest rates have <a href="https://www.dailywire.com/news/interest-payments-on-the-national-debt-on-pace-to-surpass-military-spending" target="_blank" rel="noopener">weighed</a> on the budget as lawmakers are forced to devote more revenues toward servicing the debt rather than spending on federal programs.
Democratic officials have likewise contended that Republicans are engaged in brinkmanship as they call for spending reforms in addition to a temporary increase in the debt limit. House Republicans passed legislation that <a href="https://www.dailywire.com/news/gop-led-house-passes-mccarthys-plan-to-raise-debt-limit" target="_blank" rel="noopener">freezes</a> spending at fiscal year 2022 levels with 1% annual increases for the next decade and establishes an increased debt limit.
McCarthy <a href="https://www.dailywire.com/news/mccarthy-tells-house-republicans-he-is-nowhere-near-debt-ceiling-deal-with-biden-reports" target="_blank" rel="noopener">asked</a> fellow Republicans in a closed-door meeting earlier this week to “hang with me on the debt limit” since he and Biden are “nowhere near a deal yet” with respect to spending. Biden had characterized the most recent discussions as “productive” and affirmed that “the only way to move forward is in good faith toward a bipartisan agreement.”

Kevin McCarthy and Joe Biden

Top Rating Agencies Threaten U.S. With Credit Downgrade Over Debt Limit Chaos, Even If A Deal Is Made

Rating Agencies Threaten United States With Downgrade Over Debt Limit Chaos

White House Press Secretary <a href="http://dailywire.com/topic/karine-jean-pierre" target="_blank" rel="noopener">Karine Jean-Pierre</a> told reporters on Tuesday that President <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Joe Biden</a> has reduced the <a href="https://www.dailywire.com/topic/national-debt" target="_blank" rel="noopener">deficit</a> in a meaningful way since the start of his tenure, a claim which comes as <a href="https://www.dailywire.com/topic/house-republicans" target="_blank" rel="noopener">House Republicans</a> insist on broader spending reforms.
One reporter noted that House Speaker <a href="https://www.dailywire.com/topic/kevin-mccarthy" target="_blank" rel="noopener">Kevin McCarthy</a> (R-CA), with whom the commander-in-chief has been negotiating over moves to raise the <a href="http://dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a> and implement future spending caps, said Democratic officials refuse to decrease expenditures. When asked if she agrees that Democrats “have a spending problem,” Jean-Pierre at first answered with a simple “no” and later said Biden “believes in dealing with the deficit in a real way.”
“The President takes this very seriously,” she commented. “He has proposed reducing the deficit by eliminating tax breaks for carried interest loopholes, retirement for wealthy, real estate investors, and cryptocurrency.”
Jean-Pierre said that Biden had reduced the federal budget deficit, which refers to the shortfall between annual tax collections and spending, by some $1.7 trillion over the past two years. Other senior White House officials have repeatedly made similar <a href="https://www.dailywire.com/news/biden-economic-czar-claims-white-house-is-reducing-the-budget-deficit" target="_blank" rel="noopener">statements</a>, ostensibly referencing the decrease in deficits from $3.1 trillion in fiscal year 2020 to $1.4 trillion in fiscal year 2022, as recorded in <a href="https://fred.stlouisfed.org/series/FYFSD" target="_blank" rel="noopener">data</a> from the Office of Management and Budget.
The administration officials have failed to note, however, that the deficits in fiscal year 2020 and fiscal year 2021 are attributable to stimulus packages meant to increase economic activity amid the lockdown-induced recession, one of which Biden <a href="https://www.dailywire.com/news/comparing-trump-and-bidens-covid-relief-bills" target="_blank" rel="noopener">signed</a> after the nation was no longer in a recession. The White House has also neglected to mention that the $1.4 trillion deficit in the last fiscal year is still larger than any other deficit before the lockdowns.
Beyond references to proposed tax increases for billionaires, more severe tax penalties on corporate stock buybacks, and reductions in subsidy expenditures, Jean-Pierre said that the budget framework introduced by the White House earlier this year would <a href="https://www.dailywire.com/news/biden-wants-to-cut-3-trillion-in-spending-over-the-next-decade-america-needs-20-trillion-in-cuts-to-balance-the-budget" target="_blank" rel="noopener">decrease</a> deficits by $3.0 trillion over the next decade. House Republicans have meanwhile <a href="https://www.dailywire.com/news/gop-led-house-passes-mccarthys-plan-to-raise-debt-limit" target="_blank" rel="noopener">passed</a> a bill that would cap spending at fiscal year 2022 levels, allow for 1% annual increases, and raise the debt ceiling until the start of the next fiscal year.
The debt ceiling, a statute established by lawmakers which prevents the government from spending beyond a predetermined national debt limit of $31.4 trillion, exceeded the threshold earlier this year. Treasury Secretary Janet Yellen and other officials have <a href="https://www.dailywire.com/news/yellen-says-nation-could-face-debt-default-in-less-than-three-weeks" target="_blank" rel="noopener">warned</a> that continued negotiations may induce a failure to increase the debt ceiling before the first day of June and could cause a worldwide financial crisis as the nation defaults on obligations.
The national debt, on the other hand, now surpasses $31.7 trillion and serves as a continual damper on economic growth, while elevated interest rates have <a href="https://www.dailywire.com/news/interest-payments-on-the-national-debt-on-pace-to-surpass-military-spending" target="_blank" rel="noopener">weighed</a> on the budget as lawmakers are forced to devote more revenues toward servicing the debt.
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McCarthy <a href="https://www.dailywire.com/news/mccarthy-tells-house-republicans-he-is-nowhere-near-debt-ceiling-deal-with-biden-reports" target="_blank" rel="noopener">asked</a> fellow Republicans in a closed-door meeting on Tuesday to “hang with me on the debt limit” since he and Biden are “nowhere near a deal yet” with respect to spending. Biden had characterized the most recent discussions as “productive” and affirmed that “the only way to move forward is in good faith toward a bipartisan agreement.”

Press Secretary Karine Jean-Pierre

As WH Refuses Any Spending Cuts, Karine Jean-Pierre Insists Biden ‘Believes In Dealing With The Deficit In A Real Way’

As WH Refuses Any Spending Cuts, Karine Jean-Pierre Insists Biden 'Believes In Dealing With The Deficit In A Real Way'

Budget

The White House on Tuesday said invoking the 14th Amendment to prevent the U.S. from defaulting on $31 trillion debt won&#8217;t solve the national crisis after nearly a <a href="https://www.dailywire.com/news/dems-push-biden-to-consider-14th-amendment-in-debt-ceiling-fight" target="_blank" rel="noopener">dozen left-wing Senators</a> suggested President Joe Biden use such authority.
&#8220;It is not going to deal with the problem that we&#8217;re currently having at this moment, at this time,&#8221; White House press secretary Karine Jean-Pierre <a href="https://www.whitehouse.gov/briefing-room/press-briefings/2023/05/23/press-briefing-by-press-secretary-karine-jean-pierre-34/" target="_blank" rel="noopener">told</a> reporters. &#8220;What we need to focus on is Congress acting.&#8221;
The Biden administration has warned that the U.S. could run out of money as soon as June 1.
The debt ceiling, a statute established by Congress that prevents the government from spending beyond a predetermined national debt limit of $31.4 trillion, exceeded the threshold earlier this year.
Treasury Secretary Janet Yellen <a href="https://www.dailywire.com/news/mccarthy-tells-house-republicans-he-is-nowhere-near-debt-ceiling-deal-with-biden-reports" target="_blank" rel="noopener">affirmed</a> in a letter that her agency expects to default as early as the first day of June unless lawmakers amend the debt limit. Republicans desire to link a temporary increase in the debt ceiling with spending caps, while Democrats say they prefer separate processes for debt limit negotiations and budget reforms.
Biden suggested invoking the 14th Amendment, which states the &#8220;validity of the public debt of the United States … shall not be questioned,&#8221; to raise the debt ceiling during a press conference on Sunday in Japan.
&#8220;I&#8217;m looking at the 14th Amendment as to whether or not we have the authority — I think we have the authority,&#8221; Biden said. &#8220;The question is, could it be done and invoked in time that it would not be appealed, and as a consequence, past the date in question and still default on the debt.&#8221;
&#8220;That is a question that I think is unresolved,&#8221; he added.
Biden <a href="https://www.dailywire.com/news/mccarthy-says-biden-beholden-to-radical-socialists-potus-calls-gop-debt-ceiling-position-extreme" target="_blank" rel="noopener">said</a> he would discuss the debt limit with House Speaker Kevin McCarthy (R-CA) via telephone from Air Force One as he returns home from Japan after the top Republican accused him of being beholden to &#8220;radical socialists&#8221; as a potential default looms.
McCarthy told lawmakers on Tuesday that Republican leaders are &#8220;nowhere near&#8221; a deal with the White House on the debt ceiling and asked fellow Republicans in a closed-door meeting to &#8220;hang with me on the debt limit.&#8221;
Following his remarks, Jean-Pierre dodged answering if the president had ruled out using the 14th Amendment directly and shifted the blame to members of Congress.
&#8220;This is up to lawmakers,&#8221; she said. &#8220;Understandably, the president wants any action to be strongly supported by the law, and that&#8217;s what you&#8217;ve heard him say.&#8221;
Jean-Pierre would not give a specific date that Americans could expect Biden and McCarthy to reach a deal for Congress to pass debt-ceiling legislation by June 1.
&#8220;I&#8217;m not going to get into dates,&#8221; Jean-Pierre said, &#8220;but what I can say is there is an urgency. We want to see this done as soon as possible.&#8221;
A default would likely cause a recession as the federal government, a major borrower of funds investors worldwide consider reliable, fails to repay obligations.
The national debt is a source of persistent financial risk for the United States and a damper on long-term economic growth. Elevated interest rates on the national debt have recently weighed on the budget as lawmakers are forced to devote more revenues toward servicing the obligations rather than funding programs.
Jeffrey Cawood and Ben Zeisloft contributed to this report.

Press Secretary Karine Jean-Pierre Briefs The White House Media

White House Says 14th Amendment Won’t ‘Fix The Current’ Debt Problem

White House Says 14th Amendment Won't 'Fix The Current' Debt Problem

U.S.

House Speaker <a href="http://dailywire.com/topic/kevin-mccarthy" target="_blank" rel="noopener">Kevin McCarthy</a> (R-CA) told lawmakers on Tuesday that <a href="http://dailywire.com/topic/house-republicans" target="_blank" rel="noopener">Republican</a> leaders are “nowhere near” a deal with the <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">White House</a> on the <a href="http://dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a>, a revelation that comes less than two weeks before the nation is expected to <a href="http://dailywire.com/topic/national-debt">default</a> on obligations.
The debt ceiling, a statute established by <a href="http://dailywire.com/topic/congress" target="_blank" rel="noopener">Congress</a> that prevents the government from spending beyond a predetermined national debt limit of $31.4 trillion, exceeded the threshold earlier this year. Treasury Secretary <a href="http://dailywire.com/topic/janet-yellen" target="_blank" rel="noopener">Janet Yellen</a> affirmed in a <a href="https://home.treasury.gov/news/press-releases/jy1483" target="_blank" rel="noopener">letter</a> that her agency expects to default as early as the first day of June unless the debt limit is soon amended. Republicans desire to link a temporary increase in the debt ceiling with spending caps, while Democrats say they prefer separate processes for debt limit negotiations and budget reforms.
McCarthy asked fellow Republicans in a closed door meeting to “hang with me on the debt limit” since he and President Joe Biden are “nowhere near a deal yet” with respect to spending reforms, according to <a href="https://twitter.com/JakeSherman/status/1661002969049972736" target="_blank" rel="noopener">comments</a> obtained by Punchbowl News founder Jake Sherman.
“I told the president three things: no clean debt limit, no raising taxes, spend less money,” McCarthy said in the meeting, according to Sherman. The lawmaker showed his colleagues a video with a chronology of various Democrats refusing to negotiate on the debt limit. “They made a mistake to not negotiate. Let’s stay strong together.”
McCarthy has indeed <a href="https://www.dailywire.com/news/republicans-have-done-our-part-mccarthy-blasts-biden-after-first-debt-ceiling-negotiation-in-months" target="_blank" rel="noopener">noted</a> on multiple occasions that Biden declined to continue discussions about the debt ceiling which were launched in early February, months before the possible deadline. A default would likely induce a recession as the federal government, a major borrower of funds that investors around the world consider to be reliable, neglects to repay obligations.
The comments from McCarthy come one day after another meeting with Biden on possible mechanisms to amend the debt ceiling. The commander-in-chief had characterized the discussions as “productive” and affirmed that “the only way to move forward is in good faith toward a bipartisan agreement” in a <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2023/05/22/statement-from-president-joe-biden-on-budget-negotiations/" target="_blank" rel="noopener">statement</a> from the White House.
McCarthy repeated in a <a href="https://www.speaker.gov/reasonable-republicans-and-default-democrats/" target="_blank" rel="noopener">press release</a>, however, that Biden “wasted months ignoring the crisis” and “risks bumbling into the first default in American history.”
Members of the House Freedom Caucus, a bloc of conservative Republicans, previously <a href="https://www.dailywire.com/news/house-freedom-caucus-chairman-responds-as-white-house-lobs-spurious-claims-at-spending-cut-proposal" target="_blank" rel="noopener">said</a> they would vote to raise the debt limit in exchange for a budget framework that returns expenditures to fiscal year 2022 levels, raises the debt ceiling only for the next year, and restricts annual spending growth to 1% over the next decade. McCarthy recently <a href="https://www.dailywire.com/news/gop-led-house-passes-mccarthys-plan-to-raise-debt-limit" target="_blank" rel="noopener">passed</a> the framework in the House by means of the Limit, Save, Grow Act.
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The lawmakers, without whom McCarthy is unable to pass bills because of the narrow Republican majority, <a href="https://www.dailywire.com/news/house-freedom-caucus-adopts-hardline-position-on-debt-ceiling-insists-on-meaningful-spending-reform" target="_blank" rel="noopener">reiterated</a> last week that they will not support any other means to raise the debt limit. “The House Freedom Caucus calls on Speaker McCarthy and Senate Republicans to use every leverage and tool at their disposal to ensure the Limit, Save, Grow Act is signed into law,” they said in a statement. “There should be no further discussion until the Senate passes the legislation.”
Beyond the risk of a financial crisis induced by failing to increase the debt ceiling, the national debt now surpasses $31.7 trillion and functions as a source of persistent financial risk. Elevated interest rates on the national debt have recently <a href="https://www.dailywire.com/news/interest-payments-on-the-national-debt-on-pace-to-surpass-military-spending" target="_blank" rel="noopener">weighed</a> on the budget as lawmakers are forced to devote more revenues toward servicing the obligations rather than funding programs.

McCarthy Tells House Republicans He Is ‘Nowhere Near’ Debt Ceiling Deal With Biden: Reports

McCarthy Informs Republicans He Is 'Nowhere Near' Debt Ceiling Deal With Biden

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