Janet Yellen ought to cease mendacity to the American individuals.
The Treasury secretary’s open letter to House Speaker Nancy Pelosi on Tuesday oozed dishonesty.
“While I have a high degree of confidence that Treasury will be able to finance the U.S. government through December 15,” Yellen wrote, “there are scenarios in which Treasury would be left with insufficient remaining resources to continue to finance the operations of the U.S. government beyond this date.”
Yellen then begged for what the Big Government Left craves like junkies coveting syringes. “To ensure the full faith and credit of the United States, it is critical that Congress raise or suspend the debt limit as soon as possible.”
Yes, extra federal debt! Just what America wants because the rising tide of crimson ink nears $29 trillion and climbs ever skyward.
Yellen’s feedback aren’t even new lies. They are cliches. “Everybody knows” that Treasury revenues are so tight that default looms, simply over the horizon. The Left’s incessantly screamed garbage has turn into obtained knowledge.
And yet it’s fully bogus.
Yellen’s very personal division publishes the Monthly Treasury Statement. It rigorously tracks Uncle Sam’s cashflows. Fiscal Year 2021 federal receipts totaled $4.046 trillion. Net-interest funds equaled $352.3 billion. Revenues outran debt-service obligations by $3.694 trillion or 1,048 p.c.
In different phrases, taxpayers pumped into the Treasury greater than 10 instances the cash wanted to pay curiosity on U.S. bonds and, thus, keep away from an Argentine-flavored default. Like month-to-month MasterCard funds, one needn’t disburse all the steadiness to forestall default. Monthly-minimum funds hold everybody glad.
Similarly, Treasury doesn’t have to fund the entire nationwide debt in a single month. So lengthy as Treasury retains its month-to-month debt guarantees, buyers and markets smile.
The closest Uncle Sam got here to lacking this requirement final fiscal 12 months was in August, when Washington collected $268.4 billion, greater than 5 instances past that month’s $41.8 billion in curiosity.
Too many Republicans settle for the Left’s large lie that “default is just around the corner.” Thankfully, some GOP lawmakers acknowledge this Democrat fraud.
Republican Senators Pat Toomey of Pennsylvania, Rick Scott of Florida, and 10 co-sponsors have launched the Full Faith and Credit Act. FFCA would require that Treasury pay curiosity and different key objects first, earlier than buying luxuries (e.g., $450,000 in reparations for particular person unlawful aliens) very like paying lease and bank card payments earlier than shopping for Prosecco and ski-lift tickets.
“Washington spending is out of control, with Democrats wanting to add trillions more to our growing debt,” mentioned Senator Ron Johnson. “Inflation is wiping out wage gains, and Democrats want to suspend the debt ceiling without enacting any fiscal controls. I’m happy to co-sponsor Sen. Scott and Sen. Toomey’s Full Faith and Credit Act that ensures the federal government does not default on its debt and would prioritize spending to protect the men and women in our military and those reliant on Social Security, Medicare, and veteran benefits.”
Republicans ought to insist on a right away rollcall vote on FFCA.
If it fails, Senate Democrat Leader Chuck Schumer of New York certainly will transfer to hike the debt restrict. If he asks Senate GOP Chief Mitch McConnell to assist, the Kentuckian ought to inform Schumer to pound egg lotions. Schumer, united Democrats, and a tie-breaking Vice President Kamala Harris could make this occur. McConnell owes Schumer lower than nothing.
McConnell infuriated conservatives on October 7 when he and 10 different Republicans helped Schumer lengthen the debt restrict by $480 billion by way of December 3. McConnell, at the very least publicly, bought bupkis for this whole give up, though some declare that McConnell sacrificed these debt-limit votes to guard the filibuster.
If so, McConnell ought to have informed Schumer to make that pledge verbally on the Senate ground, put it in writing, and bless it with a binding, recorded vote. Instead, McConnell, at most, bought whispered phrases from Schumer, which could possibly be drowned out amongst shouted, he said-he mentioned denials.
Even worse, after McConnell & Co. concluded their backstabbing, Schumer lacked the grace to thank them for doing so. Instead, Schumer donned his brass knuckles and went full-Joe Pesci on the hapless McConnell.
“Despite immense opposition from Leader McConnell and the Members of his conference,” Schumer mentioned, “our caucus held together, and we pulled our country back from the cliff’s edge that Republicans tried to push us over.”
Clocked, McConnell whined to Biden.
Credits : foxnews