GOP has contingency plan as debt ceiling crisis looms

[mystery-ak]

Republicans craft contingency plan as possible debt ceiling crisis looms
by Ryan King, Breaking News Reporter
January 13, 2023 09:29 PM


Republicans in the House are reportedly crafting a contingency plan in the event negotiations fail on lifting the debt limit, which is projected to be hit next week.

In the proposal currently in the works, Republicans will outline how they believe the Treasury should prioritize payments if the debt limit is maxed out. They will likely place a high emphasis on Social Security, Medicare, and the military, sources told the Washington Post.

“The use of extraordinary measures enables the government to meet its obligations for only a limited amount of time. It is therefore critical that Congress act in a timely manner to increase or suspend the debt limit," Treasury Secretary Janet Yellen warned Friday.

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https://www.washingtonexaminer.com/news/house/republicans-chart-out-backup-debt-ceiling-looms

[RetBobbyMI]

I don’t know of many banks or credit card companies that will just raise your credit limit if you are spending too much and don’t or can’t pay your minimum balance. So why should the government be treated any different?

[Bigun]

I don’t know of many banks or credit card companies that will just raise your credit limit if you are spending too much and don’t or can’t pay your minimum balance. So why should the government be treated any different?

I know some banks that will cut you off entirely under those conditions. Lots of them.

[bilo]

We currently have 30 trillion plus in our deficit. Interest alone on that debt @ 4% is 1.2 trillion per year.

I love Masie's plan 10% cut across the board. I imagine the social security recipients will not be agreeable, but change is coming whether we like it or not.

[RetBobbyMI]

We currently have 30 trillion plus in our deficit. Interest alone on that debt @ 4% is 1.2 trillion per year.

I love Masie's plan 10% cut across the board. I imagine the social security recipients will not be agreeable, but change is coming whether we like it or not.

What can they cut from Social Security? The government IOUs? Ha!

[Kamaji]

I don’t know of many banks or credit card companies that will just raise your credit limit if you are spending too much and don’t or can’t pay your minimum balance. So why should the government be treated any different?

For one thing, because the government is a sovereign entity, and therefore not subject to the rules applicable to private creditors and debtors.