• December 7, 2021

Are We Facing Economic Collapse? Do You Know the Difference Between House/Senate Bills and the Debt Limit?

 Are We Facing Economic Collapse? Do You Know the Difference Between House/Senate Bills and the Debt Limit?

Sheila G

by Sheila G

September 29, 2021

 

Some of you do not understand that funding the government with a spending bill is a separate and entirely different function than hiking the debt ceiling. It is imperative to know that defaulting because the debt ceiling was not raised is in no way just another government shutdown. It is very different. 

Do we have reason to be concerned? You bet we do!

USSA news and other news sources reported the following;

”Is there an economic collapse of third-world proportions on America’s horizon? 

“Nancy Pelosi and Joe Biden hinted at it in statements last week: “Capitalism … has not been serving our economy as well as it should” and “We’re about to … literally change the trajectory of our nation for years and possibly decades to come.”

Is Biden and Pelosi telling us they are going to put the country into default to collapse capitalism? Or, is it a bluff to get their $3.5 trillion dollar spending plan passed?

The debt limit—commonly called the debt ceiling—is the maximum amount of debt that the Department of the Treasury can issue to the public or other federal agencies. Any payment to anyone or any corporation is a debt. 

The Senate has the $3.5T spending bill, which has other non-funding items in it. Tied to this bill is the bill for raising the debt ceiling limit. 

Traditionally, the debt ceiling has been treated separately and apart from the government funding bill. However, Nancy Pelosi is using the debt ceiling as a pawn to get her huge, wasteful social $3.5 trillion dollar spending bill passed.  

✅ The spending bill is a budget – it tells government agencies how much money they have for fiscal year spending.

✅ The debt ceiling hike tells the United States Treasury how much money to have the Federal reserve print to meet our debt obligations. Debt obligations include all payments. This includes paying interest on treasury bonds, funding government pension plans, paying vendors, salaries, and everything owed to someone.

In the past, the debt ceiling has been raised separately, and then government funding proceeds separately. This year the two are tied together. Pelosi is betting the Republicans will cave and approve the $3.5b bill to save the country from defaulting on its obligations.  

✅ Our country in its entire history has never experienced a default. It is similar to bankruptcy but ever so much more severe. 

No one in this country can predict if, when, or how much the country will fall. We have zero experience to draw from. But should we default – it means there is zero cash in the bank. Concern over default is why Janet Yellen has written several letters to Pelosi.

Without cash in the bank – no one will get paid. No one knows if Congress should or can reconvene after it happens. The stock market will be the first to go down. No one knows if our credit rating will be restored, if the stock market can be saved, or how much damage will have been done to our country. You can go to the Treasury Department’s website and read all about what default means just as I did. 

https://www.cbo.gov/publication/57371

Everyone needs to clearly understand this not one of our normal government shut downs, where everyone ultimately gets paid when the government reopens.  

This is serious. Here is the hundred million dollar question:

Is it a bluff or will Biden and Pelosi do it if they don’t get their way?

I keep telling myself it has to be a bluff UNLESS the elites already have a plan ready to implement from day one of the collapse. Are the elites who want this country to come to it knees, guaranteeing reimbursement for their losses in the stock market? Does Pelosi have UN troops at the ready should it become necessary.  I don’t know.  

 I hope our Senators hold firm against passing the $3.5 Trillion dollar bill. It will force Pelosi to put up or shut up. I don’t have any idea if defaulting our country will be a good thing or a bad thing. Maybe we need a restart – a do over if you will. 

I do know one thing. When the final proposal is laid on the table in a negotiation, the first person to speak loses – true every single time.

You can find me here https://linktr.ee/thesheilag2020 or email me direct Mag[email protected]

 

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Sheila G

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