Today is the day that the U.S. hits its statutory $31.4 trillion borrowing limit. Without a deal, the Treasury Department will begin resorting to extraordinary measures to keep the nation from a catastrophic default. The White House and congressional Democrats are locked in a stalemate over raising the debt ceiling.
00:00:53.000The federal government has a $31.4 trillion borrowing limit that will reach that today.
00:01:00.000It's the job of Congress to raise that ceiling in order to continue paying America's bills.
00:01:06.000But with no legislation in sight, the Treasury Department will begin resorting to extraordinary measures to keep the nation from a catastrophic default.
00:01:16.000And there's any possibility of a deal, Willie?
00:02:18.000And they're making a host of demands in terms of budgetary concessions as a price for raising the debt limit.
00:02:24.000It's something we've seen in the past.
00:02:25.000And for the moment, President Biden is making to Republicans the same offer that Michael Corleone made to Senator Pat Gary in The Godfather, which is nothing.
00:02:34.000He does not believe this should be negotiable.
00:02:36.000He says there should be no strings attached in order to get this done.
00:02:39.000Now, Speaker McCarthy, who is leading the push for some concessions on this, has said, quote,
00:02:45.000A debt limit increase with no strings attached, he says, is, quote, totally off the table.
00:02:50.000He argues that the federal government spending should be curtailed to save programs like retirement programs from bankruptcy.
00:02:57.000He says, quote, let's sit down and find a place that we can protect Medicare and Social Security for future generations.
00:03:26.000There is a host of conservative lawmakers who have made demands, but there's no specific policy proposal, much less one that can get the votes.
00:03:36.000We saw, and just in the last 24 hours, this back and forth unfold.
00:03:40.000Congressman Andy Biggs said in a tweet, let's put this on the screen, quote, we cannot raise the debt ceiling.
00:03:46.000Democrats have carelessly spent our taxpayer money and devalued our currency.
00:03:50.000They've made their bed, so they must lie in it, unquote.
00:03:53.000The White House came back at that and said, Congressman Biggs is dead wrong to actively support the ruin of millions of American households, 401k plans and small businesses, all in the name of scorched earth partisanship.
00:04:05.000That's according to White House spokesman Andrew Bates.
00:04:07.000You can see the battle lines developing here.
00:04:09.000It's hard to know how this gets resolved.
00:04:11.000But one way or another, Congress is going to have to act or the U.S. could, for the first time in its history, default on its debt.
00:04:18.000A nation's highest duty is to its own citizens.
00:04:27.000A pro worker, pro family agenda demonstrates how a nation can thrive.
00:04:33.000But to embrace the possibilities of tomorrow, we must reject the perennial prophets of doom.
00:07:14.000That's what Andy Biggs is saying in that tweet.
00:07:17.000The Democrats, we're going to go through chapter and verse about how the administrative state and their funding mechanism, the Fed, this is going to be a great teaching moment for the American people, and that's what they don't want.
00:07:31.000Russ, you've done such a great job, and I want you to walk through how we got here, but this is a teaching moment for the nation.
00:07:38.000This is a teaching moment of exactly how we arrived at this spot and to stop all the nonsense and all the, oh, this is just paying for previous bills.
00:07:48.000The American people are going to actually understand how we got $30 trillion in debt.
00:07:53.000We have another $30 trillion of Social Security, Medicare.
00:07:56.000We have some really, I think it's $60 trillion.
00:07:59.000We've got another $9.5 trillion at the Fed that we have a trillion dollar loss looks like embedded in.
00:08:05.000The taxpayers are going to have to pay for it without any congressional authorization.
00:08:09.000We have contingent liabilities, I don't know, present value, $100 trillion north onto the US dollar with no jobs or manufacturing base.
00:08:18.000We're going to use this as a teaching moment to make sure that working class people and middle class people who are, trust me, I went to Harvard.
00:08:46.000What do we need to teach the American people so they can understand this, sir, so they're not hoodwinked about actually what's going on here?
00:09:04.000And when politicians put money on a credit card at the federal government level, what they are doing, that gets paid for with the debt limit.
00:09:13.000So people will make the case, well, these bills were racked up before I got here, but I certainly got to pay the credit card out.
00:09:19.000But you know what the normal family does is they rip up the credit cards.
00:09:24.000They get on a plan, and they actually are putting themselves in a position where they actually get their fiscal house in order.
00:09:32.000But I think what is happening this week is largely the cartel doing a hurry up offense in response to the massive wins that the House conservatives made in the House of Representatives to be able to have the power to now control what gets done in the House.
00:09:49.000And you're seeing great members like Andy Biggs saying, no, this is your problem.
00:09:54.000You're going to have to come and you're going to have to get the votes to be able to get this done.
00:09:58.000And we're not going to just bail you out of this situation with some cheap ass.
00:10:07.000You know you have to come and pass a law.
00:10:09.000This is the cartel coming outside of backroom deals, out of backroom hallways and corridors to where real stuff is supposed to happen on the House floor and Senate and getting something passed.
00:10:22.000Anybody that's had a lemonade stand or a little coffee shop or anything or anybody's got a business or even try to think about a business, if you looked at a business plan, you've got to project out.
00:10:41.000Isn't the first step, and I know you've worked on the prioritization of payments, which has got their heads blowing up, about how you actually do this without ever defaulting.
00:10:50.000But isn't the first step that the regime and the cartel have to come forward and show us a financial model?
00:10:57.000We're kind of, you know, Janet Yellen's letter is void of any numbers.
00:11:05.000Ross, your great think tank or action tank worked on your balanced budget for months and months and months in its levels of detail.
00:11:16.000Doesn't the administration owe the American people to have Janet Yellen Treasury come forward and actually show us the money, show us exactly where we are?
00:11:39.000They need to be able to show us their plan to prioritize payments.
00:11:43.000Every secretary of treasury knows that they are not going to allow to default on the debt.
00:11:49.000They're going to widen their their political notion of what default means, but they are not going to allow a default on bonds and interest on those bonds.
00:12:24.000And Tim Geithner previously as secretary of treasury tried to define it as such.
00:12:28.000So they need to come forward and then they need to come forward with what they want as they think is necessary to be able to get a debt limit increased if necessary.
00:12:46.000They brought it strategically and politically so that we can start having this debate and to push Republicans into a situation where they panic because they don't know what to say.
00:13:21.000So this is going to play out over the next several months.
00:13:24.000People should just get a nice a nice seat on the couch and be able to settle in and work this over the next several months and not and Republican members need to just chill out.
00:16:26.000Russ, how can we get, if this is a great teaching moment, not just for MAGA, because I think MAGA is far ahead of everybody else, but for the whole nation.
00:16:34.000How do we go about that, and how does your great organization help us make sure the American people fully understand exactly what the con is here?
00:16:43.000So they understand, because when the common sense of the American people make a decision, it's the most powerful force on earth.
00:16:51.000A commitment to end woke and weaponized government, and what it does is it balances in 10 years, has pro-growth, but it changes the paradigm in Washington to be able to go after the cartel and the bureaucracy that is crushing the American people.
00:17:07.000And we will continue to put that out there.
00:17:10.000You can get it at americarenewing.com.
00:17:12.000But I want to give a real easy filter for anyone that's watching this program as they try to assess where their member of Congress is.
00:17:19.000If your congressman is talking about the bureaucracy or the IRS or ATF or Department of Education putting CRT sewage in the public schools, you get a good sense that they're on the right track with how to think about this debt limit.
00:17:33.000If they're talking about Social Security and Medicare reform, they are taking the shiny object that has been a fiscal cul-de-sac for 30 years and led to every single loss and been politically unpopular.
00:17:49.000Now, they may not be all wrong in terms of like they're the bad guys, but there has not been a paradigm shift in how they are properly processing this spending fight.
00:17:58.000So we're going to be talking about what can weaponize bureaucracy at every turn as we set up the next few months to make sure that the House Republicans are talking about having debates about this.
00:18:09.000And then as it turns through the months, we'll see what the administration comes forward and the House of Representatives are in the driver's seat at every turn.
00:18:18.140But what they can't do is they can't go to where their enemy wants to talk about, which is Social Security and Medicare.
00:18:23.400And they can't rush to be the first ones to start the negotiations and put something on the table that does not meet what is necessary to save our country fiscally.
00:18:35.060Russ, how do people get to you both on social media where you're putting great stuff up all the time and also to your website?
00:18:42.880At Russ, vote on all the channels on social media.
00:19:31.080First thing on a negotiation, particularly in a bankruptcy, that's what this is, right?
00:19:35.640We're not going to default into the debt.
00:19:37.620There's plenty of cash coming in, plenty of cash to pay the interest in the face amount in Medicare and Social Security.
00:19:44.760Other things, there has to be a prioritization finally, and I know they hate that.
00:19:50.200The two things they hate are the prioritization of payments plan.
00:19:53.700They hate that, and they're just going to have to embrace the suck because that's coming, right?
00:19:59.140But more importantly, have you ever been in a situation where they're running around with their hair on fire and they won't show anybody any math?
00:20:06.920How can you even have a – how can you start a negotiation on something as big as – and here's where you've got to have the math.
00:20:13.540When I say show us the model, I want to see the model of what you're looking at, and I want to include the Fed.
00:20:30.760The idea, the preconception that we're just supposed to take their word for it, all right, from these people, people like, for example, Janet Yellen,
00:20:38.980who has been utterly wrong on every important macroeconomic event in her tenure as the Secretary of the Treasury.
00:20:47.240She told us for an entire year straight that inflation was, quote, transitory, when it was, in fact, systemic and it was embedded in the American economy because of the actions of her boss, of Joe Biden.
00:20:59.540We're now supposed to just take her word for it?
00:21:01.380No, we're not going to take her word for it.
00:21:03.200And so this is the moment – I think in an ironic way, Steve, this is a day to be celebrated because we're hitting the debt limit, okay, and that is bad news.
00:21:11.300The news of the United States has run up $30 trillion plus in debt, but it's also good news because it means we're at the leverage point now, right?
00:21:19.240We are at the pressure point where, thankfully, we have, because of what the voters did, because of what we earned by winning the House, by winning that gavel back, taking it away from Nancy Pelosi,
00:21:29.880we have earned a seat at the table in Washington, D.C., and this is the leverage point for us to now use that power that has been given by the American people to the Republican Party,
00:21:40.160to the America First movement, to improve this nation.
00:21:43.140And my number one goal regarding that leverage is to secure the border.
00:21:48.460I think that, you know, this is the chance, Steve.
00:21:50.640This is the chance for the Congress, for the House of Representatives to stand up and say, we will not increase this debt limit unless we get A, B, C, and we need to prioritize on our side of the ledger.
00:22:07.100It's prioritizing the sovereignty of the United States, which has been totally surrendered by Joe Biden.
00:22:13.280There are other critical issues, of course, for us to negotiate as well.
00:22:16.040But the point is, this is the time, the fulcrum moment, where we finally, at last, after two years of suffering through Democratic rule of the entire Congress, both the House and the Senate,
00:22:28.540this is the time when we have leverage, and let's use it.
00:22:30.960And so, Speaker McCarthy, what he should do, Steve, to your point, he should smile and say no until his tongue bleeds, okay?
00:22:43.100It will be up to the White House if they decide to shut the government down.
00:22:46.420For example, if they decide to prioritize illegal immigrants over American citizens, and if they decide to shut the government down, then it will be up to them to prioritize the payments.
00:22:55.480The schedule of payments will be on them, not on Speaker McCarthy, not on the House GOP.
00:23:02.560You saw the victory we had on the, what, the five days that changed America, that intense time.
00:23:08.400That was this audience lighting people up.
00:23:10.280It got so bad, they just cut their, they cut the switchboards off.
00:24:46.760And we're prepared to come forward with it with detailed financial numbers of what the scam is and what the lies are and how the administrative state has the Federal Reserve that just sits there and covers their debt, covers their deficits.
00:25:00.560And when they want to, they just sit there and put trillions of dollars on the Federal Reserve for liquidity, Steve, as you know.
00:25:09.220And that liquidity tends to concentrate wealth.
00:25:31.780That's such a critical point is that the little guy, OK, the deplorables are backstopping the privileged elites who get all of the upside.
00:25:40.160The deplorables get none of the upside, but yet have to backstop as they did in the great financial crisis in 2008 and 2009, bailing out Wall Street, bailing out the asset managers.
00:25:53.660And this disequilibrium, OK, this insanity, it absolutely has to stop.
00:25:57.400And let's put some data on this, by the way, because what are the real world kitchen table ramifications, the tangible ramifications of this profligacy, of this borrowing and spending madness?
00:26:07.420Well, according to Heritage Foundation, since Joe Biden took office, the average American household has lost $7,400 in real income, meaning income adjusted for the cost of goods and services that they need in their lives.
00:26:21.140That's minus $7,400 per year in lost income because of this inflation, because of rising interest rates.
00:26:34.520That's lost income because of the inflation versus your wages, which are now 21 months.
00:26:39.540Add in the interest cost is because of this.
00:26:43.200If I add the $7,400 to the increase in the $16 trillion of credit card debt, baby, you're getting the shiv.
00:26:52.800Just remember, the great awakening we can have here, not spiritual, but great awakening and understanding, is understanding they've got a perfect system for themselves to have money, power, and control.
00:27:06.280And it's going to continue until we break it.
00:27:13.580Just explain to the American people exactly how the system works and how they're underwriting it.
00:27:19.500And once they understand that, you can have all the MSNBC and New York Times and all the people, the mouthpieces for the cartel and the establishment Republican and the conservative media, they don't have a leg to stand on.
00:27:54.480Friends, you have to be blind not to see what's going on around the world.
00:28:07.380We're facing worldwide chaos on a whole new level, and it could all hit home really quickly in the form of food shortages, not to mention sky high prices for basic groceries.
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