The Debt Debacle & A YouTuber Helps People See
January 31, 2023
Playing With Priorities
The debt limit drama looms large over Washington and Wall Street. Republican lawmakers and Wall Street analysts have voiced support for a plan the White House and Treasury are strongly against – “prioritizing” payments on U.S. bonds to debtholders, while delaying its payments in other areas, including government salaries or retirement benefits.
The White House still wants Congress to raise spending limits in order to allow the government to keep running, but Wall Street has other plans for the economy. The debt prioritization plan would technically allow the government to avoid a default by making sure that it makes its payments on time – while sacrificing its other financial responsibilities. “Prioritization is really default by another name,” said Brian Riedl, an economist at the Manhattan Institute. “It’s not defaulting on the government’s debt, but it’s defaulting on its obligations.”
Currently, the government has no plan to only pay out debt holders if the spending limit isn’t raised in time. “Treasury systems have all been built to pay all of our bills when they’re due and on time, and not to prioritize one form of spending over another,” said Secretary of the Treasury Janet Yellen. Former Treasury Secretary Jack Lew called the plan “intellectually bankrupt,” but some critics of the plan acknowledge that it might be the least-awful option if Congress fails to lift the debt ceiling by the time government spending dries up. “Of all the unilateral options on the debt ceiling, prioritization is probably the healthiest horse in the glue factory,” said policy analyst Chris Krueger.
In 2011, the Treasury made some preliminary plans to prioritize its debt payments as another debt ceiling fight loomed. One issue it faced in its plans included how it would prioritize payments given the department’s large range of financial obligations. Another 2013 analysis showed that prioritization was “entirely experimental” and carried “unacceptable risk.”
Good News
- US renewable energy farms outstrip 99% of coal plants economically (Guardian)
- Nigeria’s central bank extends deadline to turn in old naira notes (Reuters)
Did You Get Your Valentine’s Day Gifts Yet?
- It’s time to ditch the bulky leather bi-folds and upgrade to The Ridge Wallet. The Ridge Wallet is a well-built, minimalist option made with premium materials.
- This RFID-blocking wallet keeps your information safe. It’s the ideal slim, front pocket wallet that is perfect for carrying with you every day.
- A better wallet exists, so why settle for less? Shop The Ridge Wallet as a Valentine’s Day gift now and get free shipping & returns – we promise not to judge you if you decide to keep it for yourself.
Mourning At The Mosque
- At least 59 people were killed in a suicide bombing attack on a mosque in Pakistan on Monday. The attack appeared to be targeting police officers, as the mosque was located in a high-security police headquarters area. According to a hospital spokesperson, the casualties totaled 59 dead and 157 injured.
- According to a local police chief, there were 300 to 400 police officers in the area when the attack took place. Near the site of the attack were police headquarters and state intelligence and counter-terrorism bureaus. Prime Minister Shehbaz Sharif claimed that the bombing had “nothing to do with Islam,” adding that “the entire nation is standing united against the menace of terrorism.”
An Offering To Have Offspring
- On Monday, China’s Sichuan province announced a plan to bolster its birth rate as the country’s population begins to shrink. The new plan will lift restrictions banning unmarried people from having children, and will remove caps on how many children couples can have. 21% of the province’s population is over 60 years old. In July 2021, the province began another baby-promoting program, which pays parents monthly allowances if they have a second or third child.
- Sichuan’s new program is set to begin on February 15. Authorities said the programs will “shift the focus of childbearing registration to childbearing desire and childbearing results.” Currently, national policies don’t necessarily ban unmarried women from having children, but proof of marriage is needed to access services like prenatal healthcare, maternity leave pay, and salary protections. Additionally, unmarried couples often face heavy fines when applying for household registration, which is necessary to get their child access to education and social services.
Additional World News
- Peru’s president renews call for elections this year to bring end to protests (Guardian)
- Rio Tinto apologises for losing radioactive capsule in Australia (BBC)
- Pope Francis to visit two fragile African nations (Reuters)
- Eight people dead as gunmen open fire at birthday party in South Africa (CNN)
- Iranian protesters sentenced to death were tortured, says Amnesty report (Guardian)
- New Zealand: Auckland braces for more heavy rains after deadly floods (CNN)
- WHO says Covid-19 remains a global health emergency, but pandemic is at a ‘transition point’ (CNN)
- U.S. arms left in Afghanistan are turning up in a different conflict (NBC)
“When I was young I thought that money was the most important thing in life; now that I am old I know that it is.” – Oscar Wilde
Guests Of Honor
- After video of Tyre Nichols’ death at the hands of Memphis police was released on Friday, protests erupted across the country calling for police reforms. On Sunday, Representative Steven Horsford, the chair of the Congressional Black Caucus, told MSNBC that Nichols’ parents had accepted his invitation to attend the State of the Union. The news came the day before Memphis police confirmed that two more officers had been suspended in connection with Nichols’ death.
- Nichols’ family won’t be the only special guests in attendance. Brandon Tsay, who disarmed the Monterey Park shooter when he reached his second location at a dance hall in Alhambra, California, will also be in attendance. California Democratic Rep. Judy Chu invited him as her guest, but was denied when Tsay revealed that President Biden had already invited him directly. “I can’t believe you turned me down for the president,” Chu joked during a medal of courage ceremony for Tsay.
Covid, Shmovid!
- On Monday, the White House announced that it will end the national and public health emergencies related to the Covid-19 pandemic on May 11. The move will end those measures that have allowed for free testing and treatments, and restructure the overall response to the pandemic. Republicans had introduced a measure that would end the emergency immediately, but the administration said that would be “a grave disservice.”
- This will also end Title 42, which has been used to shut down the U.S.-Mexico border throughout the pandemic and allow agents to send people back to their home countries rather than considering granting asylum. Covid funding from the federal government had already essentially ceased, but many are still concerned about the effect that ending the PHE will have on how people approach the disease.
Additional USA News
- TikTok CEO to testify before Congress in March (CNN)
- New York Republicans want George Santos gone. They know just the person to help. (Politico)
- A community is on edge after a man threw a Molotov cocktail at a New Jersey synagogue (NPR)
- District reassigns principal of Virginia school where boy, 6, allegedly shot teacher, spokesperson says (CNN)
- A baby spent 36 days at an in-network hospital. Why did her parents get a huge bill? (NPR)
- Why police training in the US falls short compared to the rest of the world (ABC)
- Man suspected of kidnapping and beating a woman in Oregon may be using dating apps to evade police (CNN)
A Sight For Sore Eyes
- Sometimes, the internet isn’t such a bad place. Obviously, your favorite email newsletter is one of the good eggs (nuts?), but YouTube also has some nice people, too. Over the weekend, YouTube star MrBeast released a video titled “1,000 Blind People See For The First Time,” showing him paying for cataract removal surgeries for 1,000 blind or near-blind people who couldn’t afford the procedure.
- MrBeast, a 24-year-old who runs multiple YouTube channels, has garnered over 22 billion views on his main channel alone. He partnered with ophthalmologist and surgeon Jeff Levenson for the first round of surgeries in the video, who said, “Half of all blindness in the world is people who need a 10-minute surgery.” The pair drew up a list of 40 patients from Jacksonville, Florida homeless shelters and free clinics who needed the surgery, finishing all their procedures in one day. He then connected MrBeast with SEE International, a nonprofit which helped organize treatments for the rest of the video’s patients.
- “In the days and weeks after my own cataract surgery, I was stunned by how bright and beautiful and vivid the world was,” said Levinson, who also suffered from cataracts. “But I was shocked by the idea that there are hundreds of millions, probably 200 million people around the world, who are blind or nearly blind from cataracts and who don’t have access to the surgery.”
Additional Reads
- Texas woman rides out tornado with her grandson in the car. Her dashcam captured the terrifying moments (CNN)
- These jobs are most likely to be replaced by chatbots like ChatGPT (CBS)
- The family of five flying around the world in a tiny plane (CNN)
- In Japan, pet fish playing Nintendo Switch run up bill on owner’s credit card (CNN)
- Why whale deaths are dividing environmentalists — and firing up Tucker Carlson (Politico)
- Austrian police find family illegally living in wine cellar (ABC)
- New York City snow drought poised to break multiple records for lack of measurable snowfall (ABC)