The Limit Does Exist
The Story
The US hit its debt ceiling.
So...what now?
We wait. In December 2021, Congress raised the US debt ceiling to $31.4 trillion to pay off bills. Think of it like a credit card max. The federal gov only has so much (in this case, $31.4 trillion) it can spend on its obligations — everything from Social Security and tax refunds to military salaries. Yesterday was the day the US reached its limit. And if someone hadn’t swooped in, the US would’ve fallen into default — a financial state that could have a cascading effect on everything from interest rates to the power of the dollar, potentially even triggering a recession. It could also rattle global financial markets.
Who swooped in?
Treasury Sec Janet Yellen. For months, she’s raised the alarm about the debt limit deadline. But has a plan: by pausing some of its investments into federal retiree plans, the Treasury is able to cut back on the country’s debt — and avoid default for about five months. Retirees won’t feel the pinch, at least for now. But Yellen called the budgeting tactics “extraordinary measures.” And is pleading with Congress to come up with a fix.
How long do we have?
Biden and House Speaker Kevin McCarthy (R-CA) have until about June to reach some kind of deal. But they want very different things. House Republicans want to use this as leverage to push for cuts to social programs like Social Security and Medicare. But Biden has said that’s not a negotiating point — and that Congress should raise the debt limit with no strings attached since they’ve already agreed to pay these bills.
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The closest the US has come to a moment like this was in 1979, when a technical bookkeeping error affected a small number of investors. In 2011, a standoff between Republicans and President Obama led to the first-ever downgrade of the US federal credit rating. Now, without a deal in the coming months, the US is heading toward a default — a moment that would be unprecedented.
And Also...This
Who people are talking about…
Alec Baldwin. Yesterday, New Mexico prosecutors announced they’re charging the actor and producer with two counts of involuntary manslaughter. This is about the death of Halyna Hutchins. On the set of “Rust” in 2021, Baldwin was holding a prop gun that fired a live round, killing the 42-year-old cinematographer. But the actor maintains he didn't pull the trigger and that he didn't know it included live rounds. Because the movie set was in New Mexico, state regulators fined the company for firearms safety failures. Hutchins’ family then settled a wrongful death lawsuit. Meanwhile, Baldwin has denied responsibility for her death. His lawyer says Baldwin “relied on the professionals with whom he worked” to ensure the gun didn’t have live ammunition. Now, if convicted, he could face up to 1.5 years in jail. Baldwin’s lawyer called the charges a “terrible miscarriage of justice” and plans to fight the charges.
What’s saying ‘not in our classrooms’...
Florida. The state’s Education Dept has blocked a new AP African American studies course from being offered in high schools. Over the 2022-23 school year, 60 schools across the country began testing out the college-level course as part of a pilot program. The course explores the experiences and contributions of African Americans through literature, the arts, and geography. But Florida — which reportedly has at least one high school in the pilot — said the class “significantly lacks educational value” and goes against state law. Officials didn’t explain their reasoning to the College Board, which oversees AP coursework. But state Sen. Shevrin Jones (D) called it an “attack of Black History and Black people.” It comes after Gov. Ron DeSantis (R-FL) restricted discussions of race, gender, and sexual orientation in classrooms.
What’s making big headlines in the Big Apple…
Free abortion pills. Earlier this week, New York City started providing the pills at zero cost at a public health clinic in the Bronx — reportedly the first city in the country to do so. Three clinics across Brooklyn, Manhattan, and Queens will also offer the free medication by the end of the year. Once they’re all up and running, a city official estimates they’ll provide up to 10,000 medication abortions a year. While NYC already offers medication abortions at 11 public hospitals, this program aims to eliminate insurance and other economic hurdles patients might experience in a hospital setting. It's one of several measures the city has taken to expand abortion access since Roe v. Wade was overturned.
…Oh and speaking of Roe v. Wade, remember the Supreme Court’s investigation to find out who leaked the draft opinion? SCOTUS can’t find who did it.
What might be getting 37 million calls…
What’s taking our Smile away…
What's got us saying 'hello, Wisconsin'...
What may be able to paint you like one of its French girls…
AI.
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