DC Dems should laugh at Moscow Mitch, and ignore the debt limit

The Dow Jones Industrial Average was down more than 900 points for some time today before recovering some of those losses and ending up down "only" 614. Some tried to blame this decline as a correction for a Bubbly market in 2021, or fears about the Chinese property market melting down. But I think it had a lot more to do with this.

McConnell reiterates to Dems: "They will not get Senate Republicans help for raising the debt limit." Says it "might inconvenience" Democrats' plans.

Dems will need 10 Rs to pass a CR with debt limit hike, but MM says: "We will not support legislation that raises the debt limit"

— Manu Raju (@mkraju) September 20, 2021

Hmm, you know who decides whether the US government can keep borrowing money and going into debt? THE PEOPLE WHO LEND TO US, generally through the financial markets. And given that they're still willing to give Uncle Sam money at a little over 1.3% for 10 years, it seems like they don't have a lot of concerns in lending money to us.

In addition, let's go to the US Constitution, and check out Article I, Section 8, which says that paying debt is a required duty of Congress.

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;.

And then the 14th Amendment, passed after another group of Confederates tried to pervert laws and overthrow the American government, confimred that the US will pay its debts.

Section 4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.

You know what words don't show up in the Constitution? "Cloture" or "filibuster". Those are just customs and rules of the antiquated Senate, and they can be changed or ignored at any time.

So why would we need to have 60 votes to raise our debt limit? Or to have a debt limit at all? These future expenses (many of which are required payments to other American people and American vendors ) have already been set aside. And given that there is no law saying those bills canNOT be paid, Biden and Treasury Secretary Yellen should laugh in Moscow Mitch's face, and keep paying the bills.

Who would stop them? NO ONE. Especially when it makes people remember that a main reason these debts exist and keep going up is because of the GOP Tax Scam of 2017, which a whole lot of these GOP Senators voted for.

GOP citing Biden's $3.5 trillion spending plan to oppose debt limit hike, but Dems have advanced ~$2.2 trillion in pay-fors (w/ many more on table). Total debt impact of D plan may be $1T or less

Nonpartisan estimates find 2017 GOP tax cuts added +$2 trillion to the debt https://t.co/tNhZyZboFw

— Jeff Stein (@JStein_WaPo) September 21, 2021

They voted to run up that debt, so they've lost the right to keep those debts from being paid.

But that's GOP cynicism for you. And it's been a pattern they've followed for 40 years. Radio host Thom Hartmann gave a great rundown of this sick strategy in his blog today, which goes over GOP economic advisor Jude Wanniski's "Two Santa Clauses" idea, first espoused in a Wall Street Journal column in 1976.

Refuse to raise the debt ceiling, threaten to shut down the government, and thus crash the stock market. It’s all part of the game-plan Republican’s have been running against Democrats since 1981.

Look at the Dow: their bomb is about to drop again… https://t.co/E356ax4QWq

— Thom Hartmann (@Thom_Hartmann) September 20, 2021

First, the Two Santas strategy dictates, when Republicans control the White House they must spend money like a drunken Santa and cut taxes to run up the US debt as far and as fast as possible.

This produces three results: it stimulates the economy thus making people think that the GOP can produce a good economy; it raises the debt dramatically; and it makes people think that Republicans are the “tax-cut Santa Clauses.”

Second, when a Democrat is in the White House, Republicans must scream about the national debt as loudly and frantically as possible, freaking out about how “our children will have to pay for it!” and “we have to cut spending to solve the crisis!” Shut down the government, crash the stock market, and damage US credibility around the world if necessary to stop Democrats from spending money.

This will force the Democrats in power to cut their own social safety net programs and even Social Security, thus shooting their welfare-of-the-American-people Santa Claus right in the face.

And, sure enough, here we are now with a Democrat in the White House. Following their Two Santas strategy, Republicans are again squealing about the national debt and refusing to raise the debt ceiling, imperiling Biden’s economic recovery as well as his Build Back Better plans.

Dems should call the bluff of Moscow Mitch and the other economic terrorists in the GOP, and tell them the debt ceiling is nothing more than a theory, get a budget bill for 2022 passed with 50 votes (as part of a Constitutional requirement to fund the government and its services), and then work on the larger reconciliation bill.

Just because something is a custom, it doesn't mean it has to be followed or respected. And that's how Dems in DC should act about Moscow Mitch's antics, and the GOP's fiscal thoughts in general. And I'd appreciate it if they'd be very public with that rejection.