COUNTIES WILL BE ABLE TO. WE’LL KEEP TRACKING. THIS WILL GIVE YOU ANOTHER UPDATE IN A
FEW MINUTES.
♪
♪
♪ ♪ ♪
♪ ♪ >> TODAY IS THE DEADLINE THE
DAY THE U.S. TREASURY SECRETARY
SAID THE FEDERAL GOVERNMENT
WOULD HAVE RUN OUT OF MONEY
TO PAY ITS BILLS. LAWMAKERS
REACHED A DEAL ON THE DEBT
CEILING LATE LAST WEEK THAT
SUSPENDS IT IN TILL 2025.
IT WAS SITTING AT 31.4 TRILLION
DOLLARS. SO WHERE DID THE IDEA
LET ALONE THE IMPLEMENTATION OF
THE DEBT CEILING COME FROM.
HERE’S KSAT EXPLAINS.
>> HE DOESN’T SOUND LIKE A
COMPLICATED QUESTION. WHAT’S
THE DEBT LIMIT ABOUT THE DEBATE
IN WASHINGTON? CERTAINLY HAS
BEEN THE DEBT CEILING ASSISTANT
TELLS THE FEDERAL GOVERNMENT
YOU CAN ALWAYS SPEND SO MUCH
MONEY. THE POINT AT WHICH THE
GOVERNMENT CAN NO LONGER
INCREASED DEFICIT ISSUE.
BONDS IS THE THEORETICAL LIMIT
BEYOND WHICH CONGRESS CAN SCAN
THE PRESIDENT CAN SPEND MONEY.
DID HE JUST SAY HAHAHA, RADICAL
LIMIT. IT CAME AS A RESULT OF
WAR ONE AND YOU CAN BELIEVE IT.
LIBERALLY BONDS AND THE FEAR
THAT THE FEDERAL GOVERNMENT WAS
GOING TO GO INTO DEATHS.
♪
>> THE U.S. FEDERAL GOVERNMENT
CREATED THE DEBT CEILING AS A
WAY TO PAY FOR U.S. INVOLVEMENT
IN THAT WAR. AND IT’S BEEN
AROUND EVER SINCE.
>> OF THE G 7, THE TOPS THE TOP
7 ECONOMIES IN THE WORLD.
NONE OF THEM. BUT US HAVE DEBT
CEILING. IT’S A CEILING.
LAWMAKERS CAME UP WITH AND ONE
WHICH THEY HAVE THE POWER
RACE WILL OF THE SPENDING
LIMITS ARE IMPOSED BY WHICH HAS
THE POWER OF THE PURSE, IF YOU
WILL. BUT THERE’S A DIFFERENCE
IN HOW MUCH MONEY CAN BE SPENT
VERSUS HOW MUCH DEBT THE U.S.
CAN TAKE ON THE DEBT CEILING IS
A LIMIT ON HOW MUCH MONEY THE
FEDERAL GOVERNMENT CAN BORROW
TO PAY FOR SPENDING THAT’S
ALREADY HAPPENED. IT’S MONEY
ALREADY OUT THE DOOR. THE DEBT
CEILING IS NOT NECESSARILY A
CAP ON SPENDING. HOW MUCH MONEY
CAN BE SPENT OR RATHER IT IS
EARMARKED TO BE SPENT AND ON
WHAT TAKE SHAPE IN THE ANNUAL
FEDERAL BUDGET DISCUSSION WITH
REGARD TO DEBT LIMITS.
>> VERSUS THE THE BUDGET SHOULD
BE DECOUPLED, WHICH HAS HELPED
CONTRIBUTE TO THE ARGUMENT.
WHY HAVE THE DEBT CEILING?
THERE’S A FEAR THAT WE GOT RID
OF THAT WE HAVE JUST ROUGHLY TO
SEE IN SPENDING. WE ALREADY
HAVE PREFERRED TO SEE IN
SPENDING.
>> I MEANT THAT DEBT CEILING OR
NO DEBT CEILING DEBT LIMIT OR
NO DEBT LIMIT SPENDING LIMITS
WHICH WE USED TO HAVE. BY THE
WAY, ONE POINT IN THE 1980’S
UNDER WHAT WAS CALLED GRAHAM
RUDMAN, HOLLINGS, THAT ONE WENT
AWAY IN THE 1990’S. AND SO
THERE’S NOT LIKE WE HAVE THE
SPENDING LIMITS THAT ARE
REPORTS. THE REALITY IS WE DO
HAVE A DEBT CEILING AND
CONGRESS HAS RAISED EXTENDED
OR REVISED IT 78 TIMES SINCE
1968 IN CASE YOU’RE CURIOUS.
>> THAT’S 49 TIMES UNDER
REPUBLICAN PRESIDENTS AND 29
TIMES UNDER DEMOCRATIC
PRESIDENTS CHANGING THE DEBT
CEILING IS ONE THING BUT
SURPASSED IT IS ANOTHER
GOVERNMENT SHUTDOWNS HAVE
BECOME SOMEWHAT COMMON OVER THE
YEARS. AND THAT’S WHAT SOME
PEOPLE MIGHT THINK OF WHEN
HEARING LAWMAKERS WARN OF DEBT
CEILING REPERCUSSIONS, BUT
THEY’RE NOT THE SAME. HERE’S
WHY THE U.S. GOVERNMENT MUST
HAVE ITS ANNUAL BUDGET IN PLACE
BY SEPTEMBER 30TH EVERY YEAR.
IF THEY DON’T, THE GOVERNMENT
CAN KEEP OPERATING AT ABOUT 95%
OF CURRENT SPENDING FOR WIND UP
WITH AN IMPASSE WERE FOR SAY A
WEEK OR 10 DAYS. THEY DON’T
HAVE THE BUDGET IN PLACE FOR
THE NEXT YEAR. THERE’S NOT
MONEY. THERE YOU START SHUTTING
DOWN NON-ESSENTIAL SERVICES
AND GOVERNMENT.
>> BUSTING THROUGH THE DEBT
CEILING IS DIFFERENT. IT MEANS
THE U.S. WOULD DEFAULT ON A
PAYMENT. THE EFFECT WOULD BE
THE IMMEDIATE. THERE ARE
INTEREST PAYMENTS DUE STARTING
MAY 30TH THROUGH THE END OF
JUNE. AND IF ANY ONE OF THOSE
GETS MISSED, THEN A TREASURED
BONDS BILLS NOTES AUTOMATICALLY
GET ONE NOTCH DOWNGRADE.
SO IT’S NO LONGER TRIPLE TRIPLE
A AND THAT MEANS COST OF
BORROWING GOES UP. THAT MEANS
THE COST OF BORROWING MONEY
GOES UP FOR A HOUSE FOR A LOAN.
NOW, IF YOU’RE THINKING AF
MISSED A DEBT PAYMENT EVERY
ONCE IN A WHILE. WELL, EVEN IF
THAT WE MISS ONE PAYMENT WERE
TO LOOKING AT PROBABLY A BIT.
>> 500,000 JOBS LOST AND
MILLIONS. IF IT DOES IT GOES
ON FOR A LIFETIME AMENTA TO SAY
THAT SOMEHOW GOVERNMENT
OPERATES LIKE YOU AND I DO LAST
TIME I CHECKED, YOU KNOW, I
DON’T HAVE ANY FOR THE WEAPONS
ARE CAN SEND PEOPLE TO MARS.
DEFAULTING ON U.S.. DEBT COULD
ALSO BE HALTING SOCIAL SECURITY
PAYMENTS AND MILITARY SALARIES.
EVEN A RECESSION. THERE IS NO
SPECIFIC GRANT TO THE PRESIDENT
OF THE UNITED STATES IN THE
CONSTITUTION OF THE ABILITY
TO BORROW MONEY OR ENCOURAGED
DEATH. BUT THERE IS A PROVISION
IN THE 14TH AMENDMENT AND
PRESIDENT BIDEN HAS SUGGESTED
USING GET IN SO MANY WORDS.
IT SAYS THE FEDERAL
GOVERNMENT’S DEBT CAN BE
QUESTION AND MUST BE PAID.
SO THERE IS SOME THOUGHT THAT
THE PRESIDENT COULD USE THAT.
>> AND SAY YOU CAN’T QUESTION
THE DEBT. AND SO THEREFORE,
WE’RE GOING TO KEEP OUR MONEY
BECAUSE WE’VE ALREADY DECIDED
WE’RE GOING TO SPEND MONEY ON
THESE ITEMS THAT PART OF THE
14TH AMENDMENT HAS NEVER BEEN
INTERPRETED BY THE SUPREME
COURT BEFORE YOU CAN JUST CALL
IT THE SUPREME COURT AND ASK
THEM FOR THEIR INTERPRETATION.
THEY DON’T GIVE ADVISORY
OPINIONS SO IT WOULD TAKE A
LEGAL CHALLENGE WHICH ALMOST
CERTAINLY WOULD COME AND A LONG
LEGAL FIGHT WOULD FOLLOW AT A
TIME WHEN FEDERAL BILLS ARE
PILING UP. SO I THINK IT WOULD
CREATE A CONSTITUTIONAL CRISIS.
AN ECONOMIC CRISIS.
AND WE’RE STUCK WITH TRYING TO
FIGURE OUT WHAT CONGRESS IS
GOING TO DO. IN THE MEANTIME.
>> AND THEY GOT THAT DEAL DONE
AT THE END OF LAST WEEK.
WE WANT TO KNOW WHAT YOU WANT
TO SEE EXPLAINS SCAN THIS QR
CODE TO TAKE YOU TO THE KSAT
EXPLAINS PAGE. THAT’S WHERE YOU