Hello everybody and thank you for tuning in to the weekly report. Congress

ignores real debt ceiling drama. Last week the House passed legislation

increasing the debt ceiling. The bill was supported by all but four Republicans.

For some Republicans this was the first time they had ever voted for a debt

ceiling increase. Perhaps the reason they did so this time was because the

legislation also promised to reduce federal spending by $4.5 trillion

over the next decade. Most of those spending reductions are achieved by

rolling back fiscal year spending to 2022. Levels and then limiting increases

in spending to 1% for the next 10 years. The bill also returns unspent COVID

relief money to the U.S. Treasury and eliminates

President Biden's student loan forgiveness programs. Perhaps the most

significant part of the bill is the Reigns Act. This legislation requires

congressional approval of any new federal regulations that will have an

impact of more than a hundred million dollars. We'll have significant

harmful impact on the economy or will increase consumer prices.

Even though the bill increases spending and debt there are reasons a supporter

of limiting government might vote for it. However even in the unlikely event that

this bill has passed in the Senate and signed into law by President Biden

it is unlikely that the 1% spending cap would remain in force for the

full 10 years. Historically spending caps impose as part of a balanced budget or

debt ceiling deal do not last for more than one or two

congressional terms. This is because every spending program is protected

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