House Passes Budget & Debt Ceiling | What it ACTUALLY Does

hey everyone kevin here i want to give

you a really quick update on the

infrastructure package so take a look at

this first the house just extended

government funding through december 3rd

and increased the debt limit through

december of 2022

but don't get excited yet this does not

mean our budget is actually extended

which if we miss our budget extension it

means that people don't get payments

like child tax credits or social

security recipients don't get paid it's

bad and our debt limit if we miss that

and we default on our payment

obligations we get a big bad nick in the

reputation of america's credit

worthiness which would also be very very

bad we've never defaulted on our

payments before but this is not a done

deal yet just because the house passed

it does not mean anything because we got

to get through the senate and then joe

biden has to sign it the house passing

it is easy joe biden signing it is easy

the senate is the hard part and moody's

is doing a really good job at

fear-mongering this because they wrote

this in the washington post

the united states could plunge into an

immediate recession if congress fails to

raise the debt ceiling and the country

defaults on its payment obligations this

fall according to an analysis release

tuesday this is obviously moody's right

so here moody's found that a prolonged

impasse over the debt ceiling would cost

the u.s economy up to six million jobs

and wipe out as much as 15 trillion

dollars in household wealth and send the

unemployment rate surging to nine

percent from around five percent you've

got a lot of drama going on right now

this is in addition to the drama that we

have around the infrastructure so just

to make this clear on one hand we're

trying to get the government funded

right now and increase the debt limit

democrats could do this alone in the

senate if they would just use budget

reconciliation they only have one more

opportunity to use budget reconciliation

they're refusing to do that because they

want to use budget reconciliation on the

three and a half trillion dollar

infrastructure package so this is now

leaving the government's funding and the

debt limit up in limbo and everybody's

kind of freaking out about it in

congress now we've never defaulted

before we always get this stuff done we

always get the budget done sometimes it

just gets done late so we should be able

to get through this but mitch mcconnell

republicans are promising they're not

going to vote to contribute to the 60

votes needed in the senate to make this

happen so that's kind of where we stand

with unfortunately the government's

budget and the increasing in the debt

limit which as you heard from moody's

could be a big issue now pat toomey

doesn't think it'll be as big of an

issue pat toomey thinks that the worst

that would happen if we didn't raise the

debt ceiling is that some better federal

vendors won't get paid on time so really

what you're going to have here unfold is

this media battle where what you're

going to see is democrats saying hey

look we passed the bill in the house now

you've got republicans it's their turn

in the senate to help us vote and pass

this why don't they want to fund the

government why do they want to miss our

payment obligations why are they trying

to screw our credit worthiness right

that's the media campaign that democrats

are going to use to try to pressure

republicans to go for this republicans

are like no it's not that big of a deal

those things wouldn't be that bad if it

happened especially if it happened short

term not as a prolonged impasse and

ultimately we want to pressure you to

use the budget reconciliation plan

because if you use that option then the

three and a half trillion dollar

infrastructure package is basically dead

so if democrats pass this with

three and budget reconciliation

trillion dollars is probably out the

window which means no changes on the

salt no changes on capital gains taxes

the corporate uh

corporate uh income tax rate the uh

extension of the child tax credit for

five years the preschool free preschool

for children three and four

lots of other things child care

dependent care you name it like a lot of

the things in that social infrastructure

plan just wouldn't happen and so you've

got this massive massive impasse right

now in the senate and things are about

to get real dirty over this next week at

the same time joe biden is kind of

freaking out because joe biden is

actually so freaking out that he is

going to be campaigning uh with pelosi

and schumer tomorrow at 2pm they're

going to meet to strategize how to get

this infrastructure planned rammed

through and joe biden is going to be

meeting with representatives and

congressmen and women over the weekend

to figure out how can they negotiate

actually getting the three and a half

trillion dollar infrastructure package

done along with the one trillion dollar

package that's because nancy pelosi

promised to vote on the one trillion

dollar infrastructure package on monday

but now people like the house

progressives caucus are saying no we're

not going to even vote to on the one

trillion dollar package unless you give

us the three and a half trillion dollar

package but the three and a half

trillion dollar package isn't done yet

on top of that you had house democrats

today some house progressives going we

don't want to spend a billion dollars on

the israeli iron dome so that was cut

from the bill that was supposed to be

passed today which was a normal part of

our defense aid that we usually spend

for other countries spend about 47

billion dollars in foreign aid every

year and i mean i kind of get this

because a lot of people are like hey

let's focus on paying american bills

first rather than other bills the

foreign minister in israel thinks this

is just a technical issue because of the

the debt limit and it'll get passed

again in the future but the point is

you've got a giant disaster happening in

congress right now you've got the house

progressives caucus threatening not to

vote on this bill and nancy pelosi said

that she will not

put this bill up for a vote unless she

has the votes to actually get this thing

passed uh which uh right now she nancy

pelosi says uh quote we'll cross all the

bridges when they come which is kind of

funny because it's like the bridges are

kind of here right now and this weekend

so nancy pelosi is going to be stressing

for a little while

we'll be very interested to see what

happens with this negotiation most

importantly though over this next week

is determining what happens with the

debt ceiling and the government funding

because right now the infrastructure

package it ain't gonna happen

i i don't expect uh the uh the three and

a half trillion dollar infrastructure

package to really be a priority uh at

this very moment with the exception of

biden and his discussion with democrats

the biggest priority right now is that

debt ceiling and extending government

funding and when you hear news headlines

that this thing has been passed it's

only been passed in the house we've got

a lot of work left to do we're nowhere

near close if you want more details on

exactly what's going on in the senate

check out the link down below to see

exactly uh in the video that i posted

yesterday how that negotiation is

looking this just gives you a little bit

of an update on what just passed and how

we really haven't gotten any further and

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the channel that is and folks we'll see

you in the next one thanks so much

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