What Joe Biden JUST Said | Debt Ceiling Disaster.

well folks this is awkward joe biden

just spoke in front of the nation and

discussed the disaster of the debt

ceiling and he said some pretty

impactful things that are going to be

pretty important i want to give you a

quick preface we've got three big issues

right now we've got a one trillion

dollar bipartisan infrastructure package

that was passed by the senate but the

house is waiting to pass it until the

three and a half trillion dollar

infrastructure package passes the three

and a half trillion dollar

infrastructure package

can't be negotiated until the 1 trillion

one passes thanks to kirsten cinema and

joe manchin who don't want to negotiate

until the 1 trillion package passes well

progressives don't want to pass the 1

trillion package until the 3.5 trillion

package passes at the same time

republicans are saying we're not going

to help democrats raise the debt ceiling

if we do not raise the debt ceiling the

united states will default on its debts

which will be the first time in history

the united states has ever done so and

joe biden just spoke about exactly this

the debt ceiling i'm going to break down

exactly what joe biden said

now it's worth noting that right now we

have until approximately october 18th

plus or minus a few days

thanks to what janet yellen has told us

that we will run out of money by october

18th

and if we do not

make it and we do not raise the debt

ceiling by the time we run out of money

we'll stop making payments on treasury

bonds which means we're defaulting on

our bond obligations which probably will

spike interest rates which could

potentially lead

as bond prices fall essentially which

could lead to a changing in the credit

score of the united states risk for the

nation

or for the world even

for that matter and could potentially

lead to us losing uh the reserve status

of currency for for the world the world

uses the united states dollar as a

reserve currency we also trade oil in

dollars i mean so much is done in

dollars because

the world trusts the dollar the most but

what if we

have a crisis with the u.s dollar

because

our our congress fails us and then all

of a sudden we have a chinese yuan or a

euro that takes over could have crazy

implications for the united states but

anyway let's uh break through or break

down rather what joe biden just said so

joe biden just came out

and said that raising the debt limit is

about paying off our old debt it has

nothing to do with paying for his

infrastructure plan here he's talking

about a three and a half trillion dollar

plan he does then say that his plan is

paid for his three and a half trillion

dollar plan is paid for through higher

taxes so it's not really adding to the

debt instead it's republicans who are

standing in the way by being reckless

and dangerous now that's joe biden's

point of view obviously republicans

disagree the reason republicans disagree

is republicans say hey look we don't

support you taking advantage of a 50 50

senate and using the budget

reconciliation process to try to jam

through three and a half trillion

dollars of social spending we don't

support that is what republicans are

saying and so republicans say hey if you

want to raise the debt ceiling why don't

you just raise the debt ceiling using

budget reconciliation now budget

reconciliation the problem with this is

it's a complicated process that could

take about three weeks to get done

at a fast rate could take about three

weeks to get done which means we need to

fly on this now if we're going to use it

to raise the debt ceiling uh it needs to

be amended frequently after the fact

it's complicated convoluted but budget

reconciliation can only be used by

democrats one more time this year

and that means democrats are either

going to do the three and a half

trillion dollar infrastructure package

or raise the debt ceiling or they can

rush and try to get an infrastructure

package done that'll probably be smaller

than three and a half trillion dollars

and raise the debt ceiling through

budget reconciliation i expect that to

happen i expect some sort of smaller

package to get done where everybody kind

of gets the minimums they raise the debt

ceiling and everything gets done on time

in the meantime stock markets will be

freaking out over this which in my

opinion is great buy the dip opportunity

but anyway without the debt ceiling we

can't pay benefits to veterans social

security payments payments on our bonds

says joe bidens he says that the reason

we have hit the debt ceiling is because

of the reckless tax and spend policies

of donald trump saying that donald trump

added eight trillion dollars of bills we

have to now pay in fairness a lot of

those were coveted relief uh packages

that were passed in a bipartisan

infrastructure manual or bipartisan

manner not infrastructure

joe biden mentions that defaulting would

take our economy over the cliff and it

would be a self-inflicted wound that is

a phrase by the way that janet yellen

used last week in testimony with

congress he says that failure to raise

the debt limit will call into question

the debts we've already in incurred it

will undermine treasuries threaten the

reserve status of the dollar our

american credit rating will be

downgraded which will increase interest

rates on cars and homes and he says that

this will actually shrink the value of

americans retirement accounts and your

savings could be affected your

pocketbook could be impacted as soon as

this week thanks to this republican

stunt he says this republican stunt is

hypocritical dangerous and disgraceful

and says that republicans should stop

playing russian roulette with the u.s

economy now joe biden is being very

clear here that he wants to get

republicans and democrats on board to

raise the debt ceiling what you need is

60 votes in the senate he calls this a

super majority and that is true it is a

type of super majority though it's not a

two-thirds super majority it's a

three-fifth super majority and basically

you need 10 republicans to say hey we'll

we agree to end debate on raising the

debate that takes 60 votes then you can

raise the debt ceiling with just 51

votes which democrats have they've got

50 votes in the senate plus kamal harris

as a tiebreaker but they need 60 votes

to end debate unless they want to use

budget reconciliation which again they

can only use one time so right now it's

kind of like crap if the democrats use

that on budget reconciliation they're

thinking they're like oh well then we

might be able to use it on uh on the

infrastructure plan

so

it's a pretty pretty tenuous place right

now in terms of are we going to see tax

increases are we going to get the

infrastructure plan is the

infrastructure plan just going to

completely die are we going to default i

don't actually expect us to default but

the markets are freaking out over this

right now apparently a mitch mcconnell

sent joe biden a letter about 10 minutes

before joe biden spoke he's gonna end up

talking to uh mitch mcconnell the press

asked that uh the press asked joe biden

uh the question schumer vows not to

raise the budget uh or the debt ceiling

through reconciliation if push comes to

shove what plan is more important your

infrastructure plan or the debt ceiling

joe biden punted that question said

they're both important uh and says he

won't cross that bridge

there was also a question from a

reporter that said hey

chris kirsten cinema was chased into a

press room yesterday joe manchin had

people show up in kayaks to his boat to

pressure him to make a decision or to

get something done because joe biden's

blaming mansion and cinema for being the

two democratic senators that are kind of

the holdouts because if they had them

they could get budget reconciliation

done on the 3.5 trillion and the debt

ceiling all in one it should be done but

joe manchin and cinema have made it very

clear that they don't want to even

negotiate until the 1 trillion package

has passed and wanted to be much smaller

like one and a half to two trillion

dollars is kind of the plan that they're

expecting after this uh joe biden

actually said

that uh he said in response to what size

should his package be he said well i

wanted it to be three and a half

trillion dollars i laid that out but

it's not going to be that it's going to

be less so he has officially conceded

that his infrastructure package is going

to be smaller than he told everyone so i

would make that very clear joe biden is

now making it very clear his package

will be smaller

than he told everyone it would be

then uh he says can or he's asked can

you guarantee that we won't breach the

debt ceiling and he says no i cannot

it's up to mitch mcconnell and uh he

does say i can't believe that the u.s

might actually be in a situation where

we're not paying our debts but it would

be the republicans fault is basically

what you're saying so joe biden's really

just trying to blame republicans

republicans are like you have a bunch of

reconciliation do it yourself you don't

need us because you're just trying to

hold budget reconciliation hostage to do

your three and a half trillion dollar

plan

republicans obviously see their inaction

on the debt ceiling as the perfect

opportunity to leverage democrats and

prevent what they believe is three and a

half trillion dollars of wasteful

spending from getting done so yeah the

debt ceiling is being held hostage by

both sides it's not just republicans

it's democrats holding it hostage as

well they're both playing the game here

and they're going to be using the bully

pulpit like joe biden is doing today to

to really try to convince the other side

what joe biden's trying to do is get a

bunch of angry letters going to

republicans uh over this right now and

and that might be uh successful for the

time being we'll see what happens but uh

my expectation here again a reduced

three and a half trillion dollar package

maybe a one and a half trillion dollar

package plus maybe uh the debt ceiling

and well i mean almost certainly the

debt ceiling increase

and uh maybe less tax increases and less

spending who knows maybe some things

will get cut like the length of child

tax credit or things like that so we'll

see this is what joe biden just said and

the stock market is freaking out a

little bit uh you've got uh most of the

indices in the red today you've got uh

uh yeah actually you've got the dow

jones down a percent s p down one point

three four percent nasdaq technology is

down two point two percent russell two

thousand down one point one seven

percent volatility index up eleven

percent and the bond market right now

stable at about one point four seven on

the ten-year treasury all right folks

thank you so much for watching what joe

biden just said hopefully this is

insightful for you and if it was make

sure to hit that subscribe button thanks

so much for watching we'll see you next

time

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