House Republicans prepare emergency plan for breaching debt limit

House Republicans are preparing a plan telling the Treasury Department what to do if Congress and the White House don’t agree to lift the nation’s debt limit later this year, underscoring the brinkmanship newly empowered conservatives will bring to the high-stakes negotiations over averting a U.S. default, according to six people aware of the internal discussions.

House Republicans prepare emergency plan for breaching debt limit

They tried to slip this by us. Another piece to our huge puzzle.

The plan, which was previously unreported, was part of the private deal reached this month to resolve the standoff between House conservatives and Rep. Kevin McCarthy (R-Calif.) over the election of a House speaker. Rep. Chip Roy (R-Tex.), a leading conservative who helped broker the deal, told The Washington Post that McCarthy agreed to pass a payment prioritization plan by the end of the first quarter of the year.

Could be some good news in it, but we'll see.

The emerging contingency plan shows how Republicans are preparing to threaten to not lift the nation’s debt ceiling without major spending cuts from the Biden administration. Congress must pass a law raising the current limit of $31.4 trillion or the Treasury Department can’t borrow anymore, even to pay for spending lawmakers have already authorized.

We must be close to the ceiling of our national debt to be "figuring out" what to do, or how to play it.

Economists warn that not raising the debt limit could cause the United States to default, sparking a major panic on Wall Street and leading to millions of job losses.

Something to keep an eye, for sure.

a reply to: AOx6179

Not to mention all stocks across the board will tank and everyone's 401k's etc will take a hit.

That's why you shouldn't hold positions.. take profits, stay liquid, play the volatility.

You'd have to be a trader to understand but I'm sure someone out there gets it.

a reply to: Thrumbo

Nobody asked me if I wanted part of my time to go into dumb investments that will never pay out.
401k, Medicare, social security. Hell, federal taxes aren't doing anything but hold up the idea that it's okay for the government to destroy my life.

Hang them all.

a reply to: lordcomac

401k is a voluntary thing with a company, having money in the stock market in certain stocks right? It takes some out of each check and invests it in some way that you don't decide yourself but a professional decides for you. That's his career, what he does, a stock guy at a bank except he works from home.

But yes now that it's tax season, they did get a few percent off me and nothing in return. If I had kids or listed my uncle as my dependent that no one would ever try to verify, I'd at least get a few hundred on a credit.

a reply to: Thrumbo

every 4 to 6 weeks we sail close to the crash and each time its the missing $80 trillion and the pension that need firefighting, the most consistent player has been BlackRock, during the British part, BlackRock came close to suspending trading while the BOE was forced to bail out its pensions not the UK, Truss was a scapegoat to mask the wider issues.

on the economic side i struggle to see them successfully firefighting such crash points on a monthly basis there isn't enough silver bullets left.

this keeps revolving around the pension pots which is where most corruption lies..

the current system reeks of staggering level of incompetence that led to the Lloyds names losing their shirts in the 90s.. only this time its far a global issue..

I doubt that anyone in the media establishment is going to criticize the Democrats for leaving this surprise package.

THANK YOU DEMOCRATS!!!
[/sarcasm]

(the first line is not sarcasm)

originally posted by: ElGoobero
I doubt that anyone in the media establishment is going to criticize the Democrats for leaving this surprise package.

THANK YOU DEMOCRATS!!!
[/sarcasm]

(the first line is not sarcasm)

Let's be real. This is a can that has been kicked and kicked and kicked and kicked and kicked and kicked and kicked and kicked and kicked and kicked and because no one in the entire country wants to give up what they're "entitled" to that the government says it will give them, not even a little bit, we're now looking at everyone potentially losing everything instead just that little bit.

a reply to: Thrumbo

Yes, not everyone is as sophisticated to trade like this, so long-term investing, holding positions, and buying extra when prices dip is enough for the average person. The psychology of the average person working a normal job with many other activities in life is not comparable to a capitalist or sophisticated investor, nor should be looked down upon. Different people, different needs.

I sold my puts a few days ago when the market kept going up. I read using extra ordinary measures an actual default on the US debt could be avoided until possibly June. That’s a very long term trade in my view. In the meantime I guess it’s still party time for politicians. Our millionaire politicians probably less concerned about high prices for eggs, gas, rent, mortgages, etc. That’s a middle class problem. They have their pet projects and spending priorities and insider trading deals to worry about. The US has already gone bankrupt without the ability to pay off all our debts I read so now it’s just a long term Ponzi scheme that many hope will last the rest of their lives because you never want your national currency to default during your lifetime.

a reply to: AOx6179

One correction needs to be made and explained why The Washington Post claimed the this was previously unreported.

Here's a NYTimes article (Jan 7) that talks about it as part of the McCarthy deal for Speaker.

And The WP article is blocked for money !!!!🤣

But yes, economic turmoil is eminent !!! You think we got problem now for 2 years already? This is going to be a battle of "the get even" hissy fitters 🦃

Speaker Drama Raises New Fears on Debt Limit

Many people think the government has a big reserve savings account for days like this 😎

a reply to: xuenchen

Congress pushed through a bill that was signed into law years ago, where any spending increases had to be offset by budget cuts somewhere else.

Was that only a temporary law?

Let’s start with recoup of lost money off the top of my head:

College Tuitions.
Trump Impeachment #1.
Trump Impeachment #2.
Obamacare premiums.
Jan6 unarmed insurrection hearings for nearly two years.
Ukraine War.
Afghanistan War with arm the Taliban to the teeth wit( advanced weapons pullout.
Joe’s Nuremberg Speech in front of Liberty Hall declaring war on half the US.
Border Situation when it would be more cost effective to fix the cartel problems to end the refugee crisis.

a reply to: AOx6179

each time they move up the debt it will be more explosiv the day they default !!

Economists warn that not raising the debt limit could cause the United States to default, sparking a major panic on Wall Street and leading to millions of job losses.

Default is inevitably in the cards at some point. I wish they'd just do it and get it over with. There's no way the country can pay off its debts.

a reply to: Dolby_X

if they ramp up inflation "slowly" they can just pay off external debts with worthless USD confetti after a while, right?

a reply to: Thrumbo

401k is quite luceative if you self direct it and stay on it with some research. I usually beat the managed accounts of my peers and have been since i started years ago. I barely eeked out a return in 2022, but it was much better than the double digit losses so many suffered. + is still plus even if its small.

I had doubled the return my first year self directing than the company managed accounts at my previous emoyer. I would like to learn trading more in depth i would be good at that. I excel in pattern recognition, read and react fast and enjoy in depth boring financial reports. Researching companies is exciting to me.

I must be old. I can remember when there was actually a budget that they passed, not these continuous debt ceiling increases. It has been over ten years since that last happened.

I heard the Ukraine is good for a loan.

a reply to: AOx6179

a reply to: incoserv

most western countries have run out of credit headroom.. the only one with something left is the usa but even then that evaporating under the current admin..

if we could plot out all the worst moves a gov could take this lots (sweeps all to cover all western courtiers) have made them all not only repeatedly but doubled down on them leaving a corrupt and bloated society..