EDITOR NOTE: The federal debt limit suspension is soon expiring. We should all brace for what comes next, for the ramifications of any decision, either to raise the debt ceiling or keep it as is, will likely be unfavorable. The national debt is a claim on your--and every American’s--future income. Debts are paid through taxes, or through money printing--a “hidden tax” that erodes your purchasing power. The national debt stood at $19.9 trillion when Trump took office. The following year, he signed a bill that raised the debt ceiling--and the national debt passed $20 trillion for the first time in US history. Trump suspended the debt ceiling in 2018 and it grew to $22 trillion. The following year, as the pandemic ravaged the nation and its economy, the limit was once again suspended. By the end of 2020, with Biden now occupying the White House, the national debt kept ballooning to where it now stands--a whopping $28.5 trillion. If Congress doesn’t raise or suspend the debt ceiling, the government will run out of money this October or November. But if Congress does raise or suspend it, you can guarantee that trillions in “free-for-all” taxation and spending will continue to run unchecked, virtually “seizing” a considerable chunk of your future income in order to fund Biden’s massive infrastructure agenda.
Unless Congress raises or suspends the debt ceiling, the federal government will most likely run out of money in October or November, the Congressional Budget Office said Wednesday.
Congress suspended the debt ceiling, which limits the amount of outstanding federal borrowing to $22 trillion, in 2019. But that suspension runs out on August 1st of this year.
Since the suspension went into effect, the nation has added $6.5 trillion in debt, bringing the total amount to $28.5 trillion.
For a time, however, the Biden administration could be allowed to keep borrowing because the existing laws allow Treasury to declare a ‘debt issuance suspension period’ and to take ‘extraordinary measures’ to borrow additional funds for a period of time without breaching the debt ceiling.
In a note released Wednesday, the CBO said that this authority and the Treasury’s existing cash balance would last until sometime in the first fiscal quarter of next year, which begins on October 1. The CBO said it was likely that the Treasury would run out of options in October or November.
“If that occurred, the government would be unable to pay its obligations fully, and it would delay making payments for its activities, default on its debt obligations, or both,” the CBO said.
Senate Minority Leader Mitch McConnell (R-KY) said Tuesday that Republicans will not support raising the debt ceiling.
Original post from Breit Bart