IRS Whistleblower Reacts to Biden's 'Ludicrous' Claim Justifying Hunter's Pardon
Why South Korea Is Under a State of Martial Law
Trump's Response to Canada's Trudeau About Tariffs Was Amazing
How This Dem Reacted When CNN Called Him Out Over His Past Hunter...
Watch CNN's Scott Jennings' Facial Expression When a Lib Said This About Hunter...
Joe Biden's Brazen Act Will Cost the Democrats
Trump Should Call for a New American Patriotism
JD Vance Had the Perfect Response to Bolton's Criticism of Kash Patel
Special Counsel David Weiss Sees Right Through Biden's Reasoning for Why He Pardoned...
Old Biden Post Hit With Community Note After Hunter Pardon
House Subcommittee Releases Final Report on the COVID-19 Pandemic. Here Are the Key...
You Won't Believe Who Was Crowned 'Model of the Year'
House Democrat: Biden 'Got This One Wrong'
The Biggest Lie of All? We Need to Talk About the Hunter Biden...
They All Share Blame for This Corrupt Administration
Tipsheet

The Government Isn't Going to Tell You, But We're Going to Run Out of Money in About Three Months

AP Photo/Elise Amendola

So, we’re going to run out of money soon. Oh yeah, on top of the drama regarding the infrastructure bill and the reconciliation mess, both carrying a combined price tag of around four trillion dollars, we blew the deadline the raise the debt ceiling. The Treasury Department has now entered an emergency situation, diving into their emergency funds to meet the government’s commitments, but it will run out in two-to-three months (via CNBC):

Advertisement

The Treasury Department will begin conducting emergency cash-conservation steps on Monday to avoid busting the federal borrowing limit after a two-year suspension of the debt ceiling expired at the end of July.

Economists say those so-called extraordinary measures will allow Treasury to pay off the government’s bills without floating new debt for two to three months. After that, Congress will need to either raise or suspend the borrowing limit or risk the U.S. defaulting on its obligations.

The limit, a facet of American politics for over a century, prevents the Treasury from issuing new bonds to fund government activities once a certain debt level is reached. That level reached $22 trillion in August 2019 and was suspended until Saturday. 

The new debt limit will include Washington’s additional borrowing since summer 2019. The Congressional Budget Office estimated in July that the new cap will likely come in just north of $28.5 trillion.

The Treasury Department notified Congress on Monday afternoon to confirm that it’s begun the emergency measures.

We’ve mentioned this before, but this is the leverage Democrats need to get both massive government spending packages through. Sen. Kyrsten Sinema (D-AZ) is a wild card. She says she’s not suspending her August vacation plans if there’s drama over the votes for these bills. It’s already a circus. The hard-core leftists in the House already said they will block the $1 trillion infrastructure bill if the $3.5 trillion reconciliation package isn’t passed first. Sinema is needed to pass the latter and the GOP is not going to go along with this plan at all—at least they shouldn’t. Congress in on recess, so just shows how serious our political class is taking this situation. They’re going to vote, it will probably fail, and then they’ll just revisit this when the funding for the government is about to expire on September 30. Then, roll EVERYTHING in a must-pass package. And people wonder why DC is hated so much.

Advertisement

Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos

Advertisement
Advertisement
Advertisement