Debt Ceiling Deal: Success or Disaster? $50T in Debt by 2033

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Ben Shapiro says the deal is a success and the Wall Street Journal agrees. Shapiro explains in the series of tweets below. I do not agree with him, but I want to hear what you think. I could be wrong.

Daniel Horowitz, Rand Paul, and Rob Schmitt explain below why they think it’s a horrendous deal below.

THE SUCCESS

As for Shapiro talking about entitlements, that is something that must be dealt with, but it’s not included in this issue right now.

The Betrayal?

Daniel Horowitz describes this bill as a betrayal. He wrote in part on the Blaze:

And make no mistake about it; this was a political interception. Not only did this bill enshrine the biblical and apocalyptic levels of spending into law – not only did it jettison all of the meaningful provisions of the GOP bill – it gave Biden more debt credit than what was on the table. The assumption from every GOP member was that the debt limit would be increased for one year. Instead, McCarthy, along with his negotiators, Reps. Patrick McHenry (N.C.) and Garret Graves (La.), agreed to suspend the entire debt limit for the rest of Biden’s presidency. Worse, there is no dollar limit, so that Biden can now run up the tab for the remainder of his presidency. It will be at least $4 trillion in additional debt, but likely more.

Worse, the only other leverage point Republicans have is the annual appropriation bills. But now that Republicans agreed to top-line spending numbers for the next two years, they don’t have much leverage to fight on the budget bills either. Sure, this bill does have a trigger that induces automatic 1% cuts to discretionary spending if they fail to agree on appropriation bills, but a 1% cut is no longer sufficient if working off the insane baseline of spending enshrined last year by Biden and McConnell in the omnibus bill.

THE END OF LIMITED GOVERNMENT

Rob Schmidt said last night on Newsmax that both parties are “normalizing and perpetuating pandemic emergency levels of spending into the future in this country. They want to convince you that spending 50% more money without a pandemic makes sense. It’s fiscal and sanity. You’re not hearing anything from Democrats, not even the radical left because they can’t believe their good fortune.”

He continued, “the limited government our founders knew was crucial to the survival of this country is disappearing before our eyes. About 80% of our elected leaders, including more than half of the Republicans we have in Congress, either endorse this or are totally complicit, including Kevin McCarthy who has the very difficult task of spinning this train wreck he’s selling you.”

McCarthy is spinning the fiscal demise of this country as a huge win for his party.

“Washington just used an emergency to justify spending 40% more money every single year and now that it’s over the emergency intends to stay at that rate.

“In 2019 the US government spent $4.4 trillion, COVID hit, that skyrocketed 6.8 was as high as a guy as it got in 2021. And now both parties have a post COVID agreement to spend just about that much from now on. Around 6.3 trillion a year like we did in 2022. About two trillion more than we did before the pandemic. And to distort this reality, Republicans are bragging about repealing 1.9 of the $70 billion that they’re going to give to the IRS. You’re supposed to be proud that the IRS is only getting 68.1 billion and not $70 billion. What a win for Republicans…”

LINDSEY GRAHAM

“I want to raise the debt ceiling, it would be irresponsible not to do it,” Graham told Shannon Bream on “Fox News Sunday.” “I want to control spending, I’d like to have a smaller IRS, I’d like to clawback the unused COVID money. And I know you can’t get to perfect, but what I will not do is adopt the Biden defense budget and call it a success.”

THE WALL STREET JOURNAL

Some Republicans praised the deal. Rep. Mike Lawler, a Republican from a New York district that Biden won in 2020, tweeted that the deal “cuts spending for the first time in our nation’s history.’’

According to lawmakers and aides, details of the deal were still emerging and were subject to change. Some of the main elements included:

— Spending levels: The agreement would keep nondefense spending in 2024 at roughly the same level as fiscal year 2023 and increase it by roughly 1% in 2025, people familiar with the negotiations said. Military spending would be roughly at the level of Biden’s fiscal 2024 plans, on or about 3% more than the $858 billion appropriated last year.

The deal also includes a provision that forces a 1% cut in government spending if all 12 appropriations bills aren’t passed by the end of this year, according to people familiar with the matter.

[It’s 1% off the increase to extremely high pandemic spending without a pandemic. We will have $36 trillion in debt in two years and $50 trillion in ten.]

— Food aid: The White House agreed to a key GOP demand—tightening work requirements for federal food aid.

The tentative deal would require able-bodied, low-income adults without dependents between the ages of 18 and 54 to work in order to receive food aid, up from age 49 currently. Under current law, these adults can receive benefits for no more than three months within a three-year period, unless they are working or enrolled in a work program. The changes to food aid work requirements would end after a period of years.

In an effort to make the change more palatable to Democrats, the agreement also relaxes work requirements for veterans and homeless people, and it doesn’t impose any for Medicaid.

— IRS funding: The deal would cut $10 billion that the Internal Revenue Service funding had planned to use for a decade-long effort to boost tax enforcement and modernize its technology. Congress had provided $80 billion to those plans last year. [They will get 70 billion for 80 thousand agents instead of 87,000]

WHERE ARE THE CONSERVATIVES

LAST WORD


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5 COMMENTS

  1. Shapiro fails to understand much. I will take time to refute just one of his silly establishment statements.

    Congress defied Trump the entire 4 years. The corrupt RINOs which Shapiro supports did not during the Trump years eliminate the debt limit nor fund the IRS and FBI massive expansions. This bill is much worse than the awful things the congress did in the Trump years and dullard Shapiro hides that.

  2. How many such successes can a nation endure before it becomes an anarchistic jungle akin to South Africa or Cuba?

  3. Shapiro is an establishment tool. That is the only way he landed his big job, with his credentials. He has lots of similarities to other phonies, such as Levin.

    They pretend to be conservatives and patriots, to get the audience. They use bait to get the audience and admiration, and the switch to please the establishment.

    Here are some of the switches:

    (1) the 2020 election was fair
    (2) January 6th was an insurrection
    (3) Bill Barr is a good man to be respected
    (4) take the jab and wear a mask
    (5) the debt bill is to be supported

    As tools, they come through whenever the establishment needs them.

    After all the years of betrayals by “conservatives”, I think it is obvious what these people are. There is no way these people will say the wrong thing and jeopardize their bonanza.

  4. Why am I not surprised! Same old routine I’ve watched for 40 years. Even when I was a useful idiot it was the same old stuff today as then.

    The DC Dictators got it down to a science using all the normal cliches we’ve heard time and time again. Only difference; different voice. Then the MS Media, all Democrats, many Republicans and many pundits cheer and tell We The People; “this is great deal”!

    Welcome to The Great Reset’s Modern Monetary “Theory”, the new economics used in DC. and most governments around the globe. MTT is taught in our universities.

    BTW, MD did a great job on this story! Give her some kudos!

  5. The Biden Debt Ceiling Bill will put America on an irreversible path to Destruction before the 2024 Election. There are no Debt Limits. Biden will be able to spend all he wants – Legally! We are looking at a minimum of 4 Trillion added to the Debt in the next year, but it could be 10 Trillion. No one knows without limits. Either way Inflation will be out of control. Your cash will be all but worthless by 2025. You will get a paycheck; IF YOU GET A PAYCHECK, you will spend every penny within 24 hours because everything will go up. Think in terms of 10% inflation per month. Think in terms of 1923 Germany.

    Why are we here? I’m hearing from a number of sources it’s because of Senate Chicken Hawks. They tied McCarthy up and gagged him. They want WWIII, they want War with Russia. As a Bonus they will get War with China and probably Europe. The World will turn on America. If the Military Industrial Complex gets their Blank Check they will escalate the Ukraine War to WWIII. It will go Nuclear. Before it’s over, America will be a Wasteland. There will be no Federal Government. Only a few Strong and Independent States will have any resemblance of Law and Order.

    Democrats have no end game. As soon as this Debt Ceiling is approved the Government will immediately have to borrow a Trillion Dollars, Banks will close, Markets will Decline, and Banks will Fail. Democrats want to be in charge, but have no idea of how to lead and they are not Dealing in Reality. Democrats really believe you can spend the Country into Prosperity. ALL Debt Ceiling Bills need to Fail, that will immediately force the Biden Administration to have a Balanced Budget.

    Their is no reason for a Default. The IRS takes in more than enough to cover the Debt Payment (663B), Social Security (796B), and Medicare (689B). The IRS takes in 4.9 Trillion a year so the 2.148 Trillion is not the problem, it’s how the Government spends the other 2.752 Trillion that is problem. We should limit the Defense budget back to 2% of GDP or about 460 Billion. The US Government expanded itself by 40% since 2020 hiding behind COVID. Real Unemployment and Inflation is because the Government put so many people out of the workforce with Government payments that we are now de-facto Communist Country. Claw back the 40% expansion, 1.1 Trillion, and the Budget is Balanced. Fire up the Oil Fields and we can start paying down the Debt.

    The Biden Debt Ceiling Bill will seal the Deal on Communism. It will result in World War and the destruction of America as a Constitutional Republic. If the Congress passes this bill, when the dust settles there will be no America. We will be a typical poor African or South America Country. The populations of both coast will be decimated. Over 2/3s of America’s population will not exist in 10 years. The World Economic Forum Cult will get their population reduction.

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