The issue of the debt ceiling has been on my mind the last few days. On one hand, I firmly believe congress will come to its senses and not allow our country default on its debt. On the other hand, I have no faith in the 20 members of the conservative Republican Freedom Caucus or House Majority Leader McCarty to agree to increase the debt limit. It will require an overwhelming majority of Democrats and some Republicans to join forces to approve a debt limit increase in the House. However, any Republican member of the House who does agree to approve the debt limit against McCarthy’s recommendation will suffer condemnation and political isolation from the Republican party as well as being assured of a tough Republican primary fight during the next election. (Think Liz Cheney and Peter Meijer). Furthermore, President Biden has taken the stance that the White House will not negotiate on the debt limit.
The world’s financial markets will be watching Congress’ every move until the debt limit is solved. Get ready for a crazy ride in the financial markets over the next few months.
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In the meantime, Per the NY Times, Treasury Secretary Janet L. Yellen told Congress last week that the administration would try to keep the country under that debt cap and able to finance its operations as long as possible by using “extraordinary measures.” Treasury secretaries from both parties have recently had to rely on such accounting maneuvers to allow the government to continue its operations for limited periods.
When the country comes close to — or hits — the statutory debt limit, the Treasury secretary can find ways to shift money around government accounts to remain under the borrowing cap, essentially buying time for Congress to raise the cap.
That includes seeking out ways to reduce what counts against the debt limit, such as suspending certain types of investments in savings plans for government workers and health plans for retired postal workers. The Treasury can also temporarily move money between government agencies and departments to make payments as they come due. And it can suspend the daily reinvestment of securities held by the Treasury’s Exchange Stabilization Fund, a bucket of money that can buy and sell currencies and provide financing to foreign governments.
In other words, accounting gimmicks are going to be the norm until Congress comes to its senses, whatever that means.
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Former CMU head football coach, Roy Kramer, 93 is going to be inducted into the College Football Hall of Fame as a coach, even though he coached his last game over 45 years ago.
Per the Detroit News, Kramer wanted to go in as a coach, not for anything else he did. He could’ve inducted as a contributor, considering the impressive career he had after leaving Central Michigan.
From Mt. Pleasant, he went to Vanderbilt, where he was athletic director for 12 years. Then, he went on to become commissioner of the Southeastern Conference for another 12 years. It’s in the SEC that he might’ve made his biggest impact, overseeing expansion, creating the conference championship game — the very first of its kind in college football — and laying the foundation for the Bowl Championship Series, the precursor to today’s College Football Playoff. Kramer also was a key player in the television-money boom in college athletics, particularly in college football and college basketball’s NCAA Tournament.
In short, Kramer could’ve — and should’ve — been a Hall of Famer years ago, except there was one person holding that up: Kramer himself. He worked closely with the NFF, and made it clear he didn’t want to be considered, because he didn’t want to take the spot of somebody else who was deserving. The wheels for his election were set in motion the last few years by Central Michigan boosters and Kramer’s family, who made it clear they wanted him in the Hall.
See my Video of the Day.
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Michigan’s football team cannot get out of its own way. Since losing to TCU on December 31 they have been given notice by the NCAA of level one recruiting violations, Harbaugh continued to seek offers from the NFL, and today U of M police are investigating an unauthorized search of university email from Schembechler Hall, which centers around co-offensive coordinator Matt Weiss.
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Quote of the Day: “You don’t negotiate with these kinds of people,” “These are legislative terrorists.” Representative Mike Rogers, Republican of Alabama and chairman of the Armed Services Committee, declared about the 20 members of the Republican party who held up the approval of McCarthy as speaker of the House.
Orchid of the Day: Ben Johnson, Lions Offensive Coordinator for agreeing to staying on for the 2023 season
Onion of the Day: Speaker of the House, Kevin McCarthy, for appointing George Santos to two House committees.
Question of the Day: Does the debt ceiling limit concern you?
Video of the Day: https://www.youtube.com/watch?v=Jim5v-3KaTs
The more I learn the more concerned I become. However, what troubles me more than anything is the fact that the politicians advocating against paying the nation’s bills may be only beginning to flex their muscles.