Debt Ceiling

Hold Onto Your Butts

JM Ashby
Written by JM Ashby

Treasury Secretary Steve Mnuchin has pressed Congress to raise the federal debt ceiling before they depart Washington for their summer recess which begins in late July, but it looks like he's backing off now.

Mnuchin now says he has a "backup plan" that will probably leave you wanting.

The U.S. government has “backup plans” for funding itself if Congress doesn’t raise the debt limit before lawmakers leave for their August recess as hoped, Treasury Secretary Steven Mnuchin said. [...]

Asked to elaborate on the administration’s backup plans, Mnuchin joked that he would use his Treasury secretary “superpowers” to solve the issue, referring to special accounting measures to remain below the ceiling.

Whether or not we're completely fucked may depend on whether or not our Republican-controlled Congress actually believes Mnuchin can extend the deadline with his "superpowers" or magic asterisks.

The GOP may believe in magic, but creditors don't necessarily believe in it.

It just struck me that we're all going to end up just like Trump's businesses: leveraged into oblivion. And the federal government can't declare bankruptcy like he did so many times.

  • Aynwrong

    Unreal. I got nothing.

  • Badgerite

    Oh Christ, not again. I guess if you don’t believe in government, you are not going to be very good at governing. That is the modern day GOP, Alex Jones style.
    So good luck with that, America.

  • Scopedog

    “Superpowers”?

    Hmmm….I wonder if Mnuchin said something this idiotic because he has been an executive producer on a couple of superhero movies?

  • muselet

    No, no, Ashby, you’re looking at this all wrong.

    This is an experiment to see if a society of 325 million people can function with a barter economy. It’s exciting!

    If it turns out the answer is no, we’ll have learned a lesson (probably several, including whether rich person tastes like chicken).

    (Back in the 1970s, an impressionist—memory tells me it was David Frye—had his “Richard Nixon” do a TV ad for the US’s going-out-of-business sale. Who could have predicted that would become a real possibility less than 50 years later?)

    –alopecia

    • Aynwrong

      “including whether rich person tastes like chicken.”

      Thank you for providing me an opportunity to again post this song from my youth.

      https://youtu.be/49V-oTCEcms

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