West Virginia Sen. Joe Manchin was once again at odd with his party Thursday evening, as fellow Democrat and Senate Majority Leader Chuck Schumer laid into his GOP colleagues during a floor speech following a vote to approve legislation that would temporarily raise the debt ceiling.
“Republicans played a dangerous and risky partisan game, and I am glad that their brinksmanship did not work,” said Schumer, beginning a series of remarks that would target his colleagues across the aisle, including 11 of whom voted to end debate on the debt ceiling measure, allowing for the full vote to happen.
Manchin, who could be seen seated direct behind Schumer, as the New York lawmaker made his remarks, appeared at first to be shaking his head disapprovingly before placing his head in his hands.
The unadjusted consumer price index as measured by the Bureau of Labor Statistics was 5.28 percent for the month of July, slightly lower than June at 5.32 percent, but still measuring the highest inflation on record since July 2008, when it hit nearly 5.5 percent.
The latest numbers come as Congress has easily passed another gargantuan $1.2 trillion infrastructure spending plan that included $550 billion of new spending. Interest rates have already reacted as 10-year treasuries came off a near-term low of 1.17 percent on Aug. 2 to 1.36 percent as of Aug. 12, slightly increasing inflation expectations.
The $1.2 trillion spendathon was just the latest in a long line of spending that has added $5.25 trillion to the national debt since Jan. 2020 in response to the Covid pandemic all the way to the current $28.5 trillion: the $2.2 trillion CARES Act and the $900 billion phase four under former President Donald Trump, and then the $1.9 trillion stimulus under President Joe Biden. It’s been a bipartisan affair.
The federal government is on track to reach the statutory debt limit in the fall, which would trigger a government shutdown, according to a Congressional Budget Office (CBO) estimate.
The U.S. is projected to reach the debt ceiling of $28.5 trillion by October or November, a CBO report released Wednesday stated. If Capitol Hill lawmakers don’t reach an agreement on raising the limit higher, the government could undergo its third shutdown in less than four years.
“If the debt limit remained unchanged, the ability to borrow using those measures would ultimately be exhausted, and the Treasury would probably run out of cash sometime in the first quarter of the next fiscal year (which begins on October 1, 2021), most likely in October or November,” the CBO report said.
Former Georgia Democratic gubernatorial candidate Stacey Abrams purchased two homes worth a combined $1.4 million following her failed 2018 bid to lead the state, public records reviewed by the Daily Caller News Foundation show.
Abrams purchased the homes despite reporting in a financial disclosure in early 2018 during her gubernatorial campaign that she owed the IRS $54,000 in back taxes on top of $174,000 in credit card and student loan debt.
Abrams purchased a 3,300 square foot home in Stone Mountain, Georgia, for $370,000 in September 2019, according to Nexis real estate records. The home is now worth $425,000, according to Redfin.
The annual budget deficit has already hit $1.9 trillion and counting for the fiscal year that will end in September, according to the U.S. Treasury’s April statement, and it will reach as high as $3.6 trillion this year, says the White House Office of Management and Budget (OMB). Comparatively, in 2020, the deficit totaled about $3.1 trillion for the entire year.
This comes amid the massive government spending in response to the Covid pandemic, including the $2.2 trillion CARES Act in March 2020, the $900 billion phase four legislation in Dec. 2020 and then President Joe Biden’s additional $1.9 trillion Covid stimulus bill in March 2020. Another $2.1 trillion infrastructure plan is in the works. And now, Biden is offering his $6 trillion budget, which will blow another $1.8 trillion hole in the deficit in 2022.
As a result, 33 percent of marketable national debt, or about $7.27 trillion of the $22 trillion of publicly held debt, will be coming due within the next year, according to the latest data by the U.S. Treasury. For perspective, that’s more debt than existed as recently as 2003.
The U.S. national debt is closer to $123 trillion, more than four times what the Treasury Department is reporting, Chicago-based Truth in Accounting calculates in its new annual analysis of the nation’s finances.
The federal government has $5.95 trillion in assets and $129.06 trillion worth of bills resulting in a $123.11 trillion shortfall, or a debt burden of $796,000 per U.S. household.
Because of this massive amount of debt and repeatedly poor financial decisions made by lawmakers, TIA gave the U.S. government an “F” grade for its financial condition.
Federal deficits are projected to skyrocket over the next decade, resulting in a national debt that could be 107% of U.S. GDP, according to a recent Congressional Budget Office report.
The United States’ debt reached 100% of GDP during the past fiscal year largely due to the federal response to the coronavirus pandemic and the $2.2 trillion CARES Act passed in March 2020. While the CBO’s February report projects unprecedented deficits, they are smaller than the office’s projections from last summer due to the country’s promising economic outlook.
The U.S. national debt now exceeds the size of America’s total gross domestic product and the milestone may have been met as early as June, according to a Friday New York Times report.
America’s federal debt stands at around $26.6 trillion — an approximate $7 trillion increase since 2016, according to fiscal data from the Treasury Department. Total U.S. gross domestic product (GDP) was just over $19.4 trillion at the end of June, according to a July 30 release from the U.S. Bureau of Economic Analysis.
The U.S. national debt has just reached 120.5% of the nation’s annual economic output, breaking a record set in 1946 for the highest debt level in the history of the United States. The previous extreme of 118.4% stemmed from World War II, the deadliest and most widespread conflict in world history.
Today’s unprecedented debt-to-economy ratio—which is economists’ primary measure of government debt—includes $2.5 trillion in new debt since the outset of the Covid-19 pandemic. However, it doesn’t account for the vast bulk of economic damage inflicted by government-mandated business shutdowns, which will soon make the debt ratio significantly larger by decreasing its denominator. Although this decline has already begun, most of it is not yet reflected in the official data on the size of the U.S. economy.
President Donald Trump and the Office of Management and Budget have completed another budget, this time for Fiscal Year 2021, that proposes $4.4 trillion of spending cuts over the next decade and reaching balance within 15 years.
Ten to 20 years from now, we will not be talking about impeachment, and believe it or not, we won’t still be talking about Donald Trump either. We will be talking about our debt crisis. For all the good that came from this era, the Bush, Obama and Trump administrations will all be remembered as the ones that caused the crisis that will hammer our children and grandchildren. To understand where we are, it’s helpful to review the past few years of this issue’s development.