As the saying goes, “you can’t make this stuff up.” But apparently, the U.S. government can.
It’s that time of year again, folks! The time when the United States government gets to play a game of chicken with its own economic future. That’s right, it’s debt ceiling season!
For those of you who may not be familiar with this thrilling event, the debt ceiling circus! Where the government, like a pack of clowns, tries to balance on a tightrope of not defaulting on its debt. We’ve reached the grand finale, the current cap of $31.4 trillion, but don’t fret, the Treasury Department has a few tricks up its sleeve, like using “extraordinary measures” to keep the government from defaulting on its debt… Or in other words, robbing Peter to pay Paul. But eventually, the United States will need to either borrow more money or stop paying its bills, or in simpler terms, print more money or become homeless.
Who gets to decide whether to raise the debt ceiling or not?
And who gets to decide whether we raise the debt ceiling? Why, Congress, of course! They get to play a game of political hot potato, with each party using the debt ceiling as leverage to demand their own pet projects. This year, the Republicans, who control the House, have adopted new rules making it more difficult to raise the debt limit, and they want to see “structural spending reform” before they’ll even consider it. But President Biden has said he’ll oppose any attempts to tie spending cuts to raise the debt ceiling. So, we’re in for a real treat this year, folks!
But why do we even have a debt ceiling in the first place? It’s a mystery! Some say it’s to keep government spending in check, but it’s clear that it just creates unnecessary drama and puts the nation’s economic stability at risk. It’s like a game of Russian roulette, with the nation’s financial future as the bullet.
The extraordinary measures
And what exactly are these “extraordinary measures”? Well, they involve putting a hold on contributions and investment redemptions for government workers’ retirement and health care funds. So, in other words, the government is going to steal from its own employees’ retirement funds to pay the bills. Who needs a robbing hood when you have the government?
But don’t worry, these measures will only last for a few months. Or at least, that’s what Yellen hopes. She admits in her letter that the length of time these measures will last is “subject to considerable uncertainty.” So, there’s a chance the government will be stealing from its employees for much longer.
This news comes amid friction between President Biden and House Republicans, raising alarm about whether the U.S. can sidestep a potential economic crisis. But let’s be real, the U.S. has been in an economic crisis for decades. The government has racked up an astronomical amount of debt, and now it’s starting to feel the consequences.
Years of bitter political feuds have led to a wild situation where both sides are screaming at each other, and yet somehow the country is still on the brink of default. It’s like a bad reality show where no one can agree on anything, and yet somehow the episode still ends in a cliffhanger!
It’s a dark comedy, really. The government can’t even manage its own finances, yet they expect us to trust them with ours. But hey, at least we get to watch the circus that is Congress play out on our screens. Grab the popcorn and enjoy the show, folks! and while you’re at it go check out how this space company AstroForge is trying to do the impossible by mining space asteroids.
