I am no finance guy, first and foremost. I confess I don't quite follow the logic here. Can someone please spell this bill out in plain, simple English?
Section 2 of this bill says, "Secretary of Treasury authorized to increase public debt limit."
So if I'm reading this correctly, this bill would strip Congress of its authority to establish the public debt and drop it in the lap of Yellen, who is a leftist.
Her reaction, in the event this bill passes, would be essentially to write a blank check. The current debt limit, some $29T and change, could then become $100T at the drop of a hat (theoretically).
If Congress were to spend that much money on all the f'n boondoggles BOTH parties love, the debt goes up, interest payments go way, way up, and we're that much closer to default.
THAT would be catastrophic. The U.S. credit rating already took a hit back in the Obama days when the housing debacle happened. No idea what it is today, but presumably about the same.
How much interest or percentage of GDP are we paying on the current debt? At which percentage point does the interest payment become untenable, meaning that social security, Medicare, the cost of running the government, etc., all grind to a halt?
What am I missing here?