The post Supreme Court sides with praying coach in landmark religious liberty case first appeared on Garner Ted Armstrong Evangelistic Association.

BERLIN, June 23 (Reuters) – Germany triggered the “alarm stage” of its emergency gas plan on Thursday in response to falling Russian supplies but stopped short of allowing utilities to pass on soaring energy costs to customers in Europe’s largest economy.

The measure is the latest escalation in a standoff between Europe and Moscow since the Russian invasion of Ukraine that has exposed the bloc’s dependence on Russian gas supplies and sparked a frantic search for alternative energy sources.

The step is a largely symbolic signal to companies and households but marks a major shift for Germany, which cultivated strong energy ties with Moscow stretching back to the Cold War.

Lower gas flows sparked warnings this week that Germany could fall into recession if Russian supplies halted altogether. A survey on Thursday showed the economy losing momentum in the second quarter. read more

“We must not fool ourselves: The cut in gas supplies is an economic attack on us by (Russian President Vladimir) Putin,” Economy Minister Robert Habeck said in a statement.

Gas rationing would hopefully be avoided but cannot be ruled out, Habeck said:

“From now on, gas is a scarce commodity in Germany … We are therefore now obliged to reduce gas consumption, now already in summer.”

Russia has denied the supply cuts were deliberate, with state supplier Gazprom (GAZP.MM) blaming a delay in the return of serviced equipment caused by Western sanctions. The Kremlin on Thursday said Russia “strictly fulfils all its obligations” to Europe.

The step is a largely symbolic signal to companies and households but marks a major shift for Germany, which cultivated strong energy ties with Moscow stretching back to the Cold War.

Lower gas flows sparked warnings this week that Germany could fall into recession if Russian supplies halted altogether. A survey on Thursday showed the economy losing momentum in the second quarter.

“We must not fool ourselves: The cut in gas supplies is an economic attack on us by (Russian President Vladimir) Putin,” Economy Minister Robert Habeck said in a statement.

Gas rationing would hopefully be avoided but cannot be ruled out, Habeck said:

“From now on, gas is a scarce commodity in Germany … We are therefore now obliged to reduce gas consumption, now already in summer.”

Russia has denied the supply cuts were deliberate, with state supplier Gazprom (GAZP.MM) blaming a delay in the return of serviced equipment caused by Western sanctions. The Kremlin on Thursday said Russia “strictly fulfils all its obligations” to Europe.

Berlin will provide a 15 billion euro ($15.76 billion) credit line to fill gas storage and launch a gas auction model this summer to encourage industrial users to save gas.

The second “alarm stage” of a three-stage emergency plan means authorities see a high risk of long-term supply shortages. It includes a clause allowing utilities to immediately pass on high prices to industry and households.

Habeck said Germany was not at that point, but the clause might get triggered if the supply squeeze and price gains persisted, pushing power companies deeper into the red.

“If this minus becomes so big that the companies can’t bear it any more and they fall down, the whole market threatens to fall down at some point – so a Lehman Brothers effect in the energy system,” he said, referring to the U.S. investment bank’s 2008 collapse that rippled through global financial markets.

Local utility association VKU asked the government to protect consumers with subsidies or risk utilities going bust because of low-income retail customers defaulting on payments.

The President of the Federal Network Agency, Klaus Mueller, believed it was possible for consumer prices for gas to triple.

“If you extrapolate it, it depends a lot on how you heat, how your building is built, but it can triple the previous gas bill,” he told RTL/ntv broadcasters.

The move to Phase 2 had been anticipated since Gazprom cut flows via the Nord Stream 1 pipeline across the Baltic Sea to just 40% of capacity last week.

Data released on Thursday showed Germany has imported 22% less natural gas in the first four months of 2022 but the cost surged 170% over the same period.

Facing dwindling deliveries from main supplier Russia, Germany has since late March been at Phase 1, which includes stricter monitoring of daily flows and a focus on filling gas storage facilities.

“The declaration of the alarm stage does not immediately change the fundamental status quo,” German energy provider E.ON (EONGn.DE) said. It was important, though, that the government was preparing and taking steps to stabilize markets and gas supply, it said an emailed statement to Reuters. read more

RISK OF FULL DISRUPTION
In the second stage, the market is still able to function without the need for state intervention that would kick in the final emergency stage.

Nord Stream 1 is due to undergo maintenance on July 11-21 when flows will stop. Hanns Koenig of consultancy Aurora Energy Services in Berlin said Gazprom might find reasons to drag out the process.

“Extended maintenance of Nord Stream 1 would further tighten the market and make it harder to fill gas storage until winter. This is of course in Russia’s strategic interest.”

Russia may cut off gas to Europe entirely to bolster its political leverage, the head of the International Energy Agency (IEA) warned on Wednesday, urging Europe to prepare now.

Russian gas flows to Europe via Nord Stream 1 and through Ukraine were stable on Thursday, while reverse flows on the Yamal pipeline edged up, operator data showed.

Dutch wholesale gas prices, the European benchmark, rose as much as 8% on Thursday.

Several countries have outlined measures to withstand a supply squeeze and avert winter energy shortages and an inflation spike that could test Europe’s resolve to maintain sanctions on Russia.

Supply cuts have driven German companies to contemplate painful production cuts and resorting to polluting energy sources previously considered unthinkable. read more

The European Union and Norway unveiled a deal on Thursday allowing the bloc to tap more gas from western Europe’s biggest producer.

The EU also signaled a temporary return to coal to plug the gap after calling Moscow’s gas supply cuts “rogue moves.”

Its climate policy chief Frans Timmermans said 10 of the EU’s 27 member countries have issued an “early warning” on gas supply – the first of three crisis levels.

“The risk of full gas disruption is now more real than ever before,” he said.

Reporting by Holger Hansen, Christoph Steitz, Christian Kraemer, Vera Eckert, Tom Sims, Marwa Rashad, Kate Abnett, Nora Buli, Tom Käckenhoff, Paul Carrel, Miranda Murray and Riham Alkousaa; writing by Matthias Williams Editing by Tomasz Janowski, Elaine Hardcastle

Our Standards: The Thomson Reuters Trust Principles.

Source: https://www.reuters.com/world/europe/germany-enter-phase-2-emergency-gas-plan-says-source-2022-06-23/

The post Germany triggers gas alarm stage, accuses Russia of ‘economic attack’ first appeared on Garner Ted Armstrong Evangelistic Association.

The U.S. and 21 other countries denounced the UN Human Rights Council’s bias against Israel, following the release of an 18-page report which blamed the Jewish state for perpetuating the Mideast conflict.

The report was prepared by a commission of inquiry formed last year in the aftermath of Operation Guardian of the Walls. It accused “persistent discrimination against Palestinians.”

The HRC is discussing the report.

“We believe the nature of the COI established last May is further demonstration of long-standing, disproportionate attention given to Israel in the Council and must stop,” said US Ambassador Michèle Taylor, reading out a statement to the session.

“We continue to believe that this long-standing disproportionate scrutiny should end, and that the Council should address all human rights concerns, regardless of country, in an even-handed manner,” Taylor added. “Regrettably, we are concerned that the Commission of Inquiry will further contribute to the polarization of a situation about which so many of us are concerned.”

Besides being signed by the U.S. and Israel, the statement was also signed by Austria, Bulgaria, Brazil, Canada, Cameroon, Colombia, Croatia, Eswatini, Germany, Guatemala, Hungary, Liberia, Marshall Islands, Micronesia, Nauru, North Macedonia, Holland, Palau, Togo, and the United Kingdom.

Also appearing at the UN Watch event was Col. Richard Kemp, former commander of British forces in Afghanistan.

“It’s a little like Groundhog Day: Hamas triggers a war, the UN convenes a commission to condemn Israel for the war,” Kemp said.

Source: https://worldisraelnews.com/22-countries-slam-un-human-rights-councils-anti-israel-bias/

The post 22 countries slam UN Human Rights Council’s anti-Israel bias first appeared on Garner Ted Armstrong Evangelistic Association.

“I have news for the embarrassment that claims to be our President,” state Rep. Randy Fine wrote on Twitter. “Try to take our guns and you’ll learn why the Second Amendment was written in the first place.”

The remark was met by a flood of criticism, with posters asserting that Fine, a Melbourne Beach Republican, had issued a threat.

Actress Rosanna Arquette entered Fine’s inferno of outraged Twitter replies.

“Are you threatening president Biden?” she asked. “Because it sure sounds like it.”

Congressman Jamal Bowman of New York also weighed in.

“Further evidence that the Republican Party has completely lost its way,” he wrote, arguing that Fine and the GOP were promoting “fascism.”

Thousands of posters tagged the FBI and Secret Service in their condemnations.

Fine later doubled down.

“The reaction exposes the lie of the left that they just want ‘common sense gun control.’” he tweeted later. “They want one thing and one thing only — gun confiscation and an end to the 2A — and the notion that Americans will exercise their right to fight them makes them go crazy. Boo hoo.”

Fine was surrounded by reporters in the Florida Capitol in Tallahassee Wednesday as the controversy spiraled.

He denied that he had threatened Biden but repeated his critique of the president’s handling of the Texas massacre thus far.

“He turned his speech into a speech on gun control,” Fine said outside an elevator. “It was hugely inappropriate.”

In his address on the shooting, Biden called for politicians to take a stronger position against gun manufacturers but did not offer any detailed proposals.

Source: https://nypost.com/2022/05/25/florida-pol-warns-biden-will-learn-why-2nd-amendment-was-created-if-he-takes-guns/

The post Florida pol says Biden will ‘learn’ why 2nd Amendment was created if he ‘takes’ guns first appeared on Garner Ted Armstrong Evangelistic Association.

President Biden’s administration is bracing for a wave of violence when the Supreme Court rules on Roe v. Wade in June, Fox News confirmed Wednesday.

A May 13 memo from the Department of Homeland Security details ongoing investigations into threats to “burn down or storm” the Supreme Court building. Threats against the court arose last month after a draft majority opinion overturning Roe v. Wade leaked to the press. The Supreme Court is expected to hand down the ruling next month. Axios first reported on the memo.

SENATE FAILS TO ADVANCE BILL TO GUARANTEE ABORTION ACCESS NATIONWIDE
https://www.foxnews.com/politics/senate-fails-advance-bill-guarantee-abortion-access-nationwide

The court’s conservative justices have already faced targeted protests outside their homes following the leak. The DHS memo reportedly says those protests “are likely to persist and may increase leading up to and following the issuing of the Court’s official ruling.”

The memo goes on to clarify that rhetoric supporting violent extremism does not itself constitute extremism.

“The mere advocacy of political or social positions, political activism, use of strong rhetoric, or generalized philosophic embrace of violent tactics does not constitute domestic violent extremism or illegal activity and is constitutionally protected,” the memo reportedly reads.

“DHS is committed to protecting Americans’ freedom of speech and other civil rights and civil liberties, including the right to peacefully protest,” a DHS spokesperson told Fox News. “DHS is also committed to working with our partners across every level of government and the private sector to share timely information and intelligence, prevent all forms of violence, and to support law enforcement efforts to keep our communities safe.”

The Senate unanimously voted to beef up security for justices following last month’s leak. The legislation allows Supreme Court police to arrest individuals who interfere with the court’s ability to perform its duties, and also creates a criminal penalty for individuals who impede or obstruct those duties.

“Attempts to intimidate Supreme Court Justices by the Radical Left are sadly nothing new, but dangerous nonetheless,” Sen. John Cornyn, R-Texas, who introduced the legislation, said in a statement at the time. “We must protect the Justices and their families in case these protests do turn violent.”

PRESIDENT BIDEN ‘STRONGLY CONDEMNS’ MOLOTOV COCKTAIL ATTACK ON WISCONSIN ANTI-ABORTION GROUP
https://www.foxnews.com/politics/biden-condemns-molotov-cocktail-attack-wisconsin-anti-abortion-group

The U.S. has already seen examples of pro-choice violence in the wake of the leak, with an unknown assailant throwing a Molotov cocktail through the window of a Wisconsin pro-life group in early May.

Source: https://www.foxnews.com/politics/biden-administration-memo-roe-v-wade-violence

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The post COVID-19 hospitalizations and deaths are projected to rise again in US first appeared on Garner Ted Armstrong Evangelistic Association.

Pope Francis recently told a reporter for the Argentine newspaper La Nacion that he is “willing to do everything to stop the war. Everything.” Claiming that “the Vatican never rests” in its diplomatic efforts to bring peace to Ukraine, the pope had planned a June meeting in Jerusalem with Russian Orthodox Patriarch Kirill. But any hope for papal diplomacy was dashed last week when the Vatican abruptly cancelled the meeting.

It appears that the Vatican may indeed rest in its diplomatic efforts when high profile commentators in the Catholic press here in the United States and abroad criticize any attempt by Pope Francis to meet with the Russian patriarch. Some commentators have demanded that the pope “call out by name” President Putin, adding he has not done enough to denounce what they have identified as Kirill’s role in actually encouraging or blessing Putin’s alleged war crimes.

George Weigel, a Catholic commentator and distinguished senior fellow of the Ethics and Public Policy Center in D.C., has been one of the harshest critics of the now-cancelled June meeting with Patriarch Kirill. Dismissing the diplomatic visit to Jerusalem to meet with Russian patriarch as a papal “fantasy,” Weigel wrote:

Some of those promoting a second Francis/Kirill encounter were likely thinking of the optics. Two religious leaders meeting in wartime to pray for peace would, they imagined, vividly demonstrate the Christian capacity to rise above ethnic hatred and national passion in the name of Easter faith and universal moral norms. That, however, was fantasy based on fallacy.

It is clear that Weigel has no respect for Patriarch Kirill. Claiming that Kirill has promoted an expansive vision of the Russian world that falsifies the Christian history of the eastern Slavs and underwrites a revival of tsarist and Stalinist imperialism, Weigel has called the patriarch a “mouthpiece in the Russian disinformation campaign proclaiming the tyrant Vladimir Putin as the savior of civilization against Western decadence.” Worse, Weigel accuses Kirill of “repeatedly deploying religious justifications for Russia’s barbaric assault on Ukraine,” and asks, “Is Kirill not, then, a blasphemer?”

Pope Francis has already said he is willing to do anything and “everything” to stop the war in Ukraine. He also has said that his relationship with Patriarch Kirill is “very good.” But, he also acknowledged that “others” have convinced him that canceling his conversation with the patriarch was necessary. In his interview with La Nacion, he said that “our diplomacy understood that a meeting of the two of us at this time could cause a lot of confusion.”

It is unfortunate that the anti-diplomacy side appears to be winning, even though it seems that Pope Francis truly wished to meet with the Russian patriarch. Pope Francis knows that he could make a difference in this war. Just as his saintly namesake, St. Francis of Assisi, defied the diplomats eight centuries ago by crossing the battlefield between Crusader and Muslim forces in order to meet Sultan al-Malik, Pope Francis should have an opportunity to promote peace in meeting with Patriarch Kirill. Pope Francis has already emulated St. Francis “in stressing the fraternity of the human family” throughout his papacy, in the documents he has promulgated and the outreach he has undertaken.

Pope Francis knows that people of God are not our enemies. He knows that Patriarch Kirill is not the enemy, though many commentators have attempted to make him so. In March, an article published in Religion News Service described the patriarch as “the only cleric in the world to bless the Russian atrocities in Ukraine.” In that same article, the author derisively pointed to Kirill’s $30,000 Swiss Breguet watch as proof that “he plays with the big boys.”

None of this name-calling is helpful. It is clear that Pope Francis is deeply aggrieved by the war in Ukraine, and he has enlisted the Papal Foundation to send aid to the Ukrainian people. Pope Francis has already shown in his writings and his actions throughout his papacy that he sees human fraternity as a “path for peace.” He should be supported in his efforts to take that path. A visit to Patriarch Kirill could mean the difference between peace and continued war.

Anne Hendershott is professor of sociology and director of the Veritas Center for Ethics in Public Life at Franciscan University of Steubenville, Ohio.

Source: https://www.theamericanconservative.com/articles/pope-francis-can-help-end-the-ukraine-war/

The post Pope Francis Can Help End The Ukraine War first appeared on Garner Ted Armstrong Evangelistic Association.

The Supreme Court is poised to strike down Roe v. Wade, according to an unprecedented leak of a draft opinion written by Justice Samuel Alito.

The draft leak obtained by Politico was written in early February. It was not immediately clear if it has been rewritten or revised. Fox News is not being waived off the story.

Until an official opinion is signed and released by the Court, Roe v. Wade remains the law of the land. Drafts circulate and change, as do votes.

Should Roe v. Wade be overturned, abortions would be left for the states to decide.

Fox News has reached out to the White House for comment.

CLICK HERE TO GET THE FOX NEWS APP
https://www.foxnews.com/apps-products?pid=AppArticleLink

Disclosing a draft opinion in a Supreme Court case is an extremely rare occurrence. Harvard law professor emeritus appeared on Fox News ‘Hannity’ Monday evening to discuss the report, saying he could not think of a historical precedent.

Kevin Corke@kevincorke
Court watchers are practically incandescent at this alleged leak. Says @JonathanTurley:

*It is hard not to view this as a malicious act.

*A breach of the most fundamental obligations and traditions of the Court.

*The greatest crisis Chief Justice Roberts has faced on the Court.

Jonathan Turley@JonathanTurley
The alleged leak of the opinion in Dobbs v. Jackson Women’s Health Organization is nothing short of breathtaking. It would constitute one of the greatest breaches of security in the history of the Court.

This is a developing story. Check back for updates.

Bradford Betz is a reporter for Fox News Digital. Story tips can be sent to bradford.betz@fox.com and on Twitter: @Bradford_Betz.

Source: https://www.foxnews.com/politics/supreme-court-overturn-roe-draft-leaked-draft-opinion-report

The post Supreme Court set to overturn Roe v. Wade, leaked draft opinion shows: report first appeared on Garner Ted Armstrong Evangelistic Association.

Yes, our nation experienced massive shortages during the Great Depression; however, they were not predicted nor announced BEFORE the problem. It was only after the stock market crashed that they followed.

Here, we have a different scenario. A sitting US President has information considered so reliable that the population deserves to be ‘warned’ of dwindling food supplies. Wouldn’t that be the information one would keep classified, as we wouldn’t want the public to panic or begin hoarding? Journalist Mike Gonzales wrote about purported ‘food shortages’ being used as a weapon by the Left to promote the expansion of the Welfare State.

https://www.heritage.org/hunger-and-food-programs/commentary/significant-food-shortages-rare-america

My recent post discussed a patient’s observation that the government was encouraging farmers and ranchers not to produce and destroy their crops and cattle. While I could not confirm this, we now have other disturbing information that suggests it may be true. There may be a plan by our government afoot to create a food shortage.

First, a Maricopa County, Arizona, food bank recently and mysteriously caught fire which destroyed some 50,000 pounds of food. The timing was also suspicious for arson as it occurred just 15 minutes after the Maricopa Food Pantry closed on a Monday morning.

https://t.co/ltJ8clwAJI

Dr. Benjamin Braddock reported on Twitter a number of these unusual food-related fires. There was a massive fire at a Salinas food processing plant. The facility produces for Taylor Farms.

Dr. Ben Braddock reports on at least a dozen more suspicious fires targeting similar facilities – Smithfield Foods, Deli Star Meat, Hot Pockets, Tyson Poultry, Bonanza Meat, Mair-Rite Steak, JBS Beef, McCrum Potato, Kellogg’s, and Cargill-Nutrena.

https://twitter.com/DylanRMarshall/status/1516858367599267842?s=20&t=5j9vtdQxmHpYZb19RXvc-w

Braddock reports on an explosion that destroyed a large North Carolina fertilizer plant February 1, 2022.

The North Carolina city of Winston-Salem is asking people within one mile of a raging blaze at a fertilizer plant to evacuate due to the possibility of a large explosion. Authorities say evacuees should plan on staying away for up to two days. https://t.co/dZchMB3CT2

— The Associated Press (@AP) February 1, 2022

Finally, he reports that Taiwan may be experiencing similar unexplained fires coincidentally targeting food facilities.

https://t.co/0qGtQeukdn

Interestingly, any resulting food shortage will likely and officially be blamed on Vladimir Putin’s invasion of Ukraine. After all, the Ukraine is known as the World’s Breadbasket, and the war has throttled their crop production. But, of course, Putin, Biden’s scapegoat for everything, has also shouldered the blame for runaway gas prices and unprecedented inflation.

But if we examine this more closely, it begins to sound more and more like the World Economic Forum and the Great Reset agenda. The WEF is grounded in technocracy and ‘stakeholder capitalism,’ a fancy term for Fascism, the melding of Government and Corporatism into a totalitarian control over the average citizen.

https://rwmalonemd.substack.com/p/techno-facism-techno-feudalism-or?r=17wv6g&s=r&utm_campaign=post&utm_medium=web

The WEF is the elite Oligarchy that are pulling the strings of our various prime ministers and presidents and orchestrating Woke Ideology, Climate Change, Pandemics, Wars, and now Concocted Food Shortages to create a scenario where citizens will embrace global control – to the point where we will all be happy merely to survive, but own nothing, by 2030.

Is it possible our own government is betraying us?

Is it possible that the United States of America, the envy of the world, has been so infiltrated by monied interests that it would turn on its own and devour its young – all to benefit a few elites that control the money, the media, and narrative?

Once again, we call for all freedom-loving Americans and citizens to awaken and spread the word. The time now is not for panic, but it is a time for action to defeat unjust laws, action to elect new Congressmen and Senators, and action to defeat censorship in any way we can. Now, not later, is the time for all to speak out.

Dr. Justus R. Hope, writer’s pseudonym, graduated summa cum laude from Wabash College where he was named a Lilly Scholar. He attended Baylor College of Medicine where he was awarded the M.D. degree. He completed a residency in Physical Medicine & Rehabilitation at The University of California Irvine Medical Center. He is board-certified and has taught at The University of California Davis Medical Center in the departments of Family Practice and Physical Medicine & Rehabilitation. He has practiced medicine for over 35 years and maintains a private practice in Northern California.

Source: https://www.thedesertreview.com/opinion/columnists/food-shortage—by-design/article_3fada3f4-c4bd-11ec-be1a-a3c822925ee5.html

The post Food Shortage – By Design first appeared on Garner Ted Armstrong Evangelistic Association.

But as unfathomable as this number is, the national debt can impact ordinary Americans’ lives.

Daniel Rodriguez, COO at Hill Wealth Strategies, says that if the government wants to maintain the same level of benefits and services to Americans and its international allies without running up both the deficit and the national debt, more revenue will be required.

“The only way to get more revenue is to increase taxes on the American people or reduce spending,” he says. “The government may choose to reduce spending on things like infrastructure, social safety nets, first responders, and education. Those programs have direct impacts on Americans’ day-to-day lives.”

Here’s what the national debt is, the factors responsible for making it rise and fall and how it can impact your life.

What Is the National Debt?
Just like the debt you have is a figure that represents how much you owe your creditors, the national debt represents how much the United States government owes its creditors.

When the U.S. government spends more money than the revenues it brings in each year, it creates an imbalance called a budget deficit. The government must then borrow money to cover its expenses.

It’s more common than not for the government to run a deficit, regardless of which party is in charge. In fact, the government has run a deficit for 77 of the past 90 years and first carried debt after the Revolutionary War in 1790.

How Could the National Debt Impact Consumers?
Congress is responsible for ensuring the government stays funded, but you might still be curious about the national debt and how it relates to the federal deficit.

Here are six ways the rising national debt could potentially impact Americans.

1. Higher Interest Rates
When the government needs to borrow more, they’ll need to increase yields on Treasury bills, I Bonds and other fixed-income instruments to make those investments attractive to investors. And while this can translate into higher yields on savings accounts, it also means higher mortgage rates, making the housing market unaffordable to some Americans. Consumers will likely pay more in interest on their credit cards and other loans as well, since those interest rates rise when the Fed raises interest rates, too.

2. Higher Product Prices
While America’s grappling with paying more at the grocery store, the national debt at current levels could cause inflationary trends to continue.

Increased Treasury yields could make American businesses appear to be riskier investments abroad, which could force companies to raise yields on new bonds to make them attractive investments. The more companies have to pay to keep their debts in good standing, the more pressure to increase product prices. Higher product prices mean higher revenues, which is how companies can pay their debt obligations.

3. Lower Home Prices
As interest rates go up, Americans will likely qualify to borrow less since more of their payment each month goes to interest and less toward principal. Thus, buyers won’t be able to afford as many homes as they would when interest rates are lower. This will place downward pressure on home prices, which can impact the equity of all homeowners.

4. Less to Spend on Other Government Initiatives
The more money the U.S. has to spend on meeting its debt obligations as interest rates increase, the less financial capacity it could have to fund programs focused on education, veterans benefits and transportation.

This breakdown of the 2019 Federal Budget from the Council on Foreign Relations shows how the budget pie is only so big, so when one area increases (like interest payments), another must decrease.

5. National Security Issues
The higher the national debt becomes, the more the U.S. is seen as a global credit risk. This could impact the U.S.’s ability to borrow money in times of increased global pressure and put us at risk for not being able to meet our obligations to our allies—especially in wartime. This could negatively impact the U.S.’s position as a global political, economic and social power.

6. Lower Returns on Your Investments
Bonds issued by the Treasury are typically seen as low-risk investments. When interest rates rise, the yield on these low-risk investments also rises, making them more attractive investments for income-minded investors over other riskier income-generating investments like corporate bonds.

This could leave companies that typically rely on bonds short on the loans they need to finance expansions and operations and translate into lower returns for equity investors when companies fail to meet revenue targets.

What Causes the National Debt to Increase?
Sometimes the government needs to increase spending to stabilize the economy, and protect Americans and businesses from unexpected economic conditions.

During The Great Recession (Dec. 2007 to Jun. 2009), for example, Congress passed legislation injecting $1.8 trillion into the economy. But that pales in comparison to the $4.5 trillion the Trump and Biden administrations have pumped into the economy since the Covid pandemic began in March 2020.

However, there are other reasons the national debt increases, even during years where spending is moderate and the economy is in good shape.

Tax Cuts
On one hand, tax cuts can stimulate the economy and put more money in Americans’ bank accounts every payday. But those same tax cuts mean the federal government brings in less revenue across the board.

For example, the Tax Cuts and Jobs Act of 2017 slashed taxes for individual and corporate payers, but created a $275 billion shortfall in revenue even though the economy grew. The Act caused revenue from corporate taxes to decrease by $135 billion, a 40% reduction from projected revenue.

Rising Healthcare Costs
According to data from the nonpartisan Peter G. Peterson Foundation, per capita healthcare spending in the U.S. is three times higher than in comparable developed nations like the United Kingdom and France. As America’s population ages, more people enroll in Medicare—and older Americans typically require more care. This translates to the federal budget bearing the burden for rising healthcare costs.

Interest Costs
If you’ve ever had a car loan or mortgage, you’re familiar with how much of your payment each month goes toward interest. The same is true of the federal government’s debts. As the national debt rises, the government will pay more interest to keep those debts in good standing.

Using data from the Congressional Budget Office and the Office of Management and Budget, the Peter G. Peterson Foundation estimates that the government will pay a staggering $5.4 trillion in interest over the next 10 years.

Who’s Responsible for the Current National Debt?
In short? Pretty much every administration.

“Regardless of political affiliation, parties in power have run up the deficit through higher spending and lower revenue collection,” says Brian Rehling, head of Global Fixed Income Strategy at Wells Fargo Investment Institute.

While it’s easy to say a particular president or president’s administration caused the federal deficit and national debt to move a certain direction, it’s important to note that only Congress can authorize the type of legislation with the most impact on both figures.

Here’s a look at how Congress acted during four notable presidential administrations and how their actions impacted both the deficit and national debt.

Franklin D. Roosevelt
As the nation’s last four-term president, FDR helped Americans weather an abundance of economic crises. His presidency spanned The Great Depression and his signature New Deal economic recovery package helped lift America out of financial rock bottom. But the most significant increase to the national debt was the cost of World War II, which added roughly $186 billion to the national debt between 1942 and 1945. Congress added $236 billion to the national debt during FDR’s terms, representing an increase of 1,048%.

Ronald Reagan
During Reagan’s two terms, Congress enacted two historic tax cuts that decreased government revenue: the Economic Recovery Tax Act of 1981 and the Tax Reform Act of 1986. These Acts passed by Congress decreased revenue as a percent of the GDP by 1.7% between 1982 and 1990, creating a revenue shortfall that contributed to the national debt increasing 261% ($1.26 trillion) during his administration, from $924.6 billion to $2.19 trillion.

Barack Obama
Over two terms, the Obama administration oversaw both The Great Recession due to the collapse of the mortgage market and the ensuing recovery. In 2009, Congress passed the Economic Stimulus Act, which helped countless Americans save their homes from foreclosure, pumping $831 billion into the economy. Congressional tax cuts accounted for another $858 billion added to the national debt when passed by a strong bipartisan showing. All in all, Congressional action increased the national deficit by 74 percent and added $8.6 trillion to the national debt during Obama’s two terms.

Donald Trump
During his single term, Congress passed the Tax Cuts and Jobs Act in 2017, which slashed corporate and personal income tax rates. Considered by many a boon for the wealthiest Americans and corporations, at the time of its passage, the Congressional Budget Office estimated the cuts would increase the federal deficit by $1.9 trillion.

While the Treasury Secretary estimated that the tax cuts would decrease the federal deficit, the deficit increased from $665 billion in 2017 to $3.13 trillion in 2020. The tax cuts drove some of this increase but multiple Covid relief packages were responsible for the majority of the increase.

The federal debt held by the public increased from $14.6 trillion in 2017 to over $21 trillion in 2020. Public debt and intragovernmental debt (the amount owed to federal retirement trust funds like the Social Security Trust Fund) make up the national debt. It’s the amount of money the U.S. owes to outside debtors such as U.S. banks and investors, businesses, individuals, state and local governments, Federal Reserve and foreign governments and international investors like Japan and China. The money is borrowed to raise the cash needed to keep the U.S. operating. It includes Treasury bills, notes, and bonds. Other holders of public debt include Treasury Inflation-Protected Securities (TIPS), U.S. savings bonds and state and local government series securities.

“The national debt continues to grow as it has not for decades,” says James Cassel, chairman and co-founder of investment bank Cassel Salpeter. “This is the result of this simple concept of spending more money than you have in revenue.” Cassel also mentions that both major political parties have, at times, spoken seriously about a commitment to reduce the national debt yet conversations and strategy remain stalled.

However, the national debt is more commonly used as a bargaining chip when both parties posture about raising the debt ceiling each year. Without raising the debt ceiling, the U.S. would default on its debt obligations. Thus, Congress always votes to raise the debt ceiling (how much money the U.S. government can borrow), but not before parties negotiate on other legislation.

Read more: The Debt Ceiling Fight Could Bruise Your Finances. Here’s How.

Are We Helpless When It Comes to the National Debt?
In some ways, yes. But there are actions you can take to mitigate the effect of the national debt on your life.

Pay your taxes: According to the IRS, the federal government loses $1 trillion each year due to unpaid taxes.

Put pressure on your Congressional reps: Call or write to your Representatives and Senators in support of tax code reform, increased funding for the IRS to track down tax cheats and closing loopholes that give the country’s most profitable companies tax bills that are lower than most Americans.

Follow your reps’ voting history: If you’re curious how your Representatives and Senators have voted on fiscal policy issues, that’s easy to check. You can use voting history to back up your concerns when writing or calling your reps.

Learn about healthcare reform: While national healthcare remains a contentious topic, it could pay to learn how other countries control healthcare costs and how those policies could benefit you, your neighbors and the impact rising healthcare costs has on the national debt.

Rehling from Wells Fargo Investment Institute says that while the national debt has increased substantially over the past decade, the U.S. isn’t unique in this regard. The rest of the developed world has seen similar trends.

“While these budget trends are unsustainable over the long run, there is no indication that current debt levels are overly worrisome,” he says.

Ed. note: This article has been corrected to more accurately reflect the U.S. national debt increased numbers.

Source: US Debt Clock

Source: https://www.forbes.com/advisor/personal-finance/u-s-national-debt-surpasses-30-trillion-what-this-means-for-you/

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