Debt Ceiling 2023
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wrote on 6 Feb 2023, 16:45 last edited by
Shucks, wonder if it would help to take all the unspent COVID money and pay debt with it?
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@jon-nyc said in Debt Ceiling 2023:
Of course “cutting spending” in the abstract is quite popular. It sounds like someone else’s sacrifice.
Once you’re specific you find that cuts are generally either unpopular (cut SSA or Medicare) or budgetarily immaterial (zero out “foreign aid”).
Again, a variation of the Penny Plan. Let everybody share in the pain equally. Let Congress then make some hard choices on the allocation of funds.
wrote on 6 Feb 2023, 21:54 last edited by@Jolly said in Debt Ceiling 2023:
@jon-nyc said in Debt Ceiling 2023:
Of course “cutting spending” in the abstract is quite popular. It sounds like someone else’s sacrifice.
Once you’re specific you find that cuts are generally either unpopular (cut SSA or Medicare) or budgetarily immaterial (zero out “foreign aid”).
Again, a variation of the Penny Plan. Let everybody share in the pain equally. Let Congress then make some hard choices on the allocation of funds.
The penny has exactly the problem i described. No specifics just a top line number.
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Of course “cutting spending” in the abstract is quite popular. It sounds like someone else’s sacrifice.
Once you’re specific you find that cuts are generally either unpopular (cut SSA or Medicare) or budgetarily immaterial (zero out “foreign aid”).
wrote on 6 Feb 2023, 22:28 last edited by@jon-nyc said in Debt Ceiling 2023:
Of course “cutting spending” in the abstract is quite popular. It sounds like someone else’s sacrifice.
Once you’re specific you find that cuts are generally either unpopular (cut SSA or Medicare) or budgetarily immaterial (zero out “foreign aid”).
Do you consider moving the retirement age up by 1 year effective 2043 to be a “cut”?
SSA Administrative costs are $6.5 Billion per year. To you doubt that they could cut administrative expenses by $500 Million with no drop in performance and services? I have no doubt they could. I also have no doubt that service would be affected. They are addicted to the public teat…
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wrote on 6 Feb 2023, 22:34 last edited by LuFins Dad 2 Jun 2023, 22:36
Most private retirement accounts have an administrative cost of .30%. SSA is at .60% and at a MUCH higher volume with a much easier mission (2.5% returns). And their administrative overhead outside of payroll is much lower than the private market. I highly doubt Merril Lynch is getting GSA pricing for office furniture, computers, and such…
There was some talk a few decades ago about privatization of SSA, but it was shot down. Fine. Just privatize the administration of the program…
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Most private retirement accounts have an administrative cost of .30%. SSA is at .60% and at a MUCH higher volume with a much easier mission (2.5% returns). And their administrative overhead outside of payroll is much lower than the private market. I highly doubt Merril Lynch is getting GSA pricing for office furniture, computers, and such…
There was some talk a few decades ago about privatization of SSA, but it was shot down. Fine. Just privatize the administration of the program…
wrote on 7 Feb 2023, 00:50 last edited by@LuFins-Dad said in Debt Ceiling 2023:
Most private retirement accounts have an administrative cost of .30%. SSA is at .60% and at a MUCH higher volume with a much easier mission (2.5% returns).
This CNBC article says .45% "all-in" expense for private 401(k) accounts on average.
As for the SSA, the .60% is the total including the administration of the disability insurance program. Excluding the disability insurance program, the "old age and survivorship insurance" program's administrative cost is only .40%.
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@LuFins-Dad said in Debt Ceiling 2023:
Most private retirement accounts have an administrative cost of .30%. SSA is at .60% and at a MUCH higher volume with a much easier mission (2.5% returns).
This CNBC article says .45% "all-in" expense for private 401(k) accounts on average.
As for the SSA, the .60% is the total including the administration of the disability insurance program. Excluding the disability insurance program, the "old age and survivorship insurance" program's administrative cost is only .40%.
wrote on 7 Feb 2023, 02:21 last edited by@Axtremus said in Debt Ceiling 2023:
@LuFins-Dad said in Debt Ceiling 2023:
Most private retirement accounts have an administrative cost of .30%. SSA is at .60% and at a MUCH higher volume with a much easier mission (2.5% returns).
This CNBC article says .45% "all-in" expense for private 401(k) accounts on average.
As for the SSA, the .60% is the total including the administration of the disability insurance program. Excluding the disability insurance program, the "old age and survivorship insurance" program's administrative cost is only .40%.
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.45% for a 401K on average AFTER you start adding in ETF fees and such. The basic administrative fees are .37% according to your article. When we shopped retirement plans a few years ago, .30% was the magic number.
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401Ks represent what? 30% of retirement plans? IRA’s run a little lower, I believe…
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Either way, none comes close to the sheer magnitude and volume of the SSA. That volume drives administrating costs down per dollar spent.
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3 months later
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wrote on 6 May 2023, 17:44 last edited by
https://www.reuters.com/article/usa-ratings-scope-ratings-idUSKBN2WX00H
Scope Ratings on Friday placed the United States of America’s AA long-term issuer and senior unsecured debt ratings in local and foreign currency under review for a possible downgrade due to longer run risks associated with the misuse of the debt ceiling instrument.
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wrote on 8 May 2023, 17:51 last edited by
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wrote on 8 May 2023, 18:32 last edited by jon-nyc 5 Aug 2023, 18:33
I don't think that passes constitutional muster. Borrowing money is reserved for congress, and if the executive tries to do that unilaterally that has constitutional problems.
Of course congress has passed all the laws that are requiring the current level of spending, so the executive unilaterally halting spending to prevent breaking the ceiling would have the same constitutional problem.
I suspect the only truly constitutional methods for the executive branch to unilaterally navigate a debt ceiling crisis would be either minting the trillion dollar coins or issue premium bonds (bonds with above-market interest rates that will sell well above face value, since face value is what counts in the debt ceiling limit).
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wrote on 15 May 2023, 02:49 last edited by
https://www.politico.com/news/2023/05/14/supreme-court-debt-limit-14th-amendment-00096784
More discussion on the 14th Amendment. Some interesting stuff like whether the Supreme Court would want or touch it at all, whether anyone will buy bonds issued by the Executive Branch (but not authorized by the Legislative Branch), whether anyone will have standing to sue if such bonds are issued, especially if such bonds are sold only to the Federal Reserve.
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19 days later
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wrote on 2 Jun 2023, 22:15 last edited by
https://abcnews.go.com/Politics/biden-give-prime-time-address-debt-ceiling-deal/story?id=99787806
Biden to speak about the debt ceiling deal tonight at prime time (June 2, 2023, 7 PM Eastern).
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wrote on 2 Jun 2023, 22:21 last edited by
Very presidential thing to do.
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https://abcnews.go.com/Politics/biden-give-prime-time-address-debt-ceiling-deal/story?id=99787806
Biden to speak about the debt ceiling deal tonight at prime time (June 2, 2023, 7 PM Eastern).
wrote on 2 Jun 2023, 22:24 last edited by@Axtremus said in Debt Ceiling 2023:
Biden to speak about the debt ceiling deal tonight at prime time (June 2, 2023, 7 PM Eastern).
One of the provisions in the agreement is the cancellation of student debt forgiveness. Somewhere I read that that's a stand-alone bill.
I wonder if he'll veto that.
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wrote on 2 Jun 2023, 22:47 last edited by
I bet he wants more of your money.
And he wants more debt.
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wrote on 2 Jun 2023, 23:16 last edited by
Yep. He wants more money. He talks about taxing the wealthy but doesn't seem to understand the difference between net worth and income. That was a most partisan non-partisan speech.
Still, it was pretty good, and it was presidential.
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@Axtremus said in Debt Ceiling 2023:
Biden to speak about the debt ceiling deal tonight at prime time (June 2, 2023, 7 PM Eastern).
One of the provisions in the agreement is the cancellation of student debt forgiveness. Somewhere I read that that's a stand-alone bill.
I wonder if he'll veto that.
wrote on 2 Jun 2023, 23:33 last edited by@George-K said in Debt Ceiling 2023:
@Axtremus said in Debt Ceiling 2023:
Biden to speak about the debt ceiling deal tonight at prime time (June 2, 2023, 7 PM Eastern).
One of the provisions in the agreement is the cancellation of student debt forgiveness. Somewhere I read that that's a stand-alone bill.
I wonder if he'll veto that.
Nah, he’ll sign as is. He and McCarthy made the deal after all.
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wrote on 2 Jun 2023, 23:36 last edited by
Agreed, Jon. Despite his slightly confusing speech, the bipartisanship is encouraging.
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@George-K said in Debt Ceiling 2023:
@Axtremus said in Debt Ceiling 2023:
Biden to speak about the debt ceiling deal tonight at prime time (June 2, 2023, 7 PM Eastern).
One of the provisions in the agreement is the cancellation of student debt forgiveness. Somewhere I read that that's a stand-alone bill.
I wonder if he'll veto that.
Nah, he’ll sign as is. He and McCarthy made the deal after all.
wrote on 3 Jun 2023, 00:23 last edited by@Jon said in Debt Ceiling 2023:
Nah, he’ll sign as is. He and McCarthy made the deal after all.
Turley's article doesn't substantiate his comment about what KJP said.
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wrote on 3 Jun 2023, 00:28 last edited by
https://www.cnbc.com/2023/05/26/house-passes-bill-blocking-student-debt-forgiveness.html
The Senate passed a bill on Thursday aimed at blocking President Joe Biden’s student debt forgiveness plan and ending the pause on federal student loan payments and interest.
The Republican-sponsored bill passed by a vote of 52-46 with three Democrats joining Republicans in support of the resolution. The White House vowed to veto the bill before it went before the House.
