May 31, 2023

Day 862: "No margin for error."

4 minutes

1/ The bipartisan deal to suspend the debt ceiling and limit federal spending cleared a major procedural hurdle in the House. The House voted 241-187 to formally consider the debt ceiling bill. While setting the rules for debate is nearly always decided along party lines, Kevin McCarthy needed 52 votes from Democrats to offset 29 Republican “no” votes. A final vote on the debt ceiling is expected later Wednesday – days ahead of the June 5 default deadline. If approved, it would then move to the Senate, where conservatives could force days of debate. “I cannot stress enough that we have no margin – no margin – for error,” Chuck Schumer warned. “Either we proceed quickly and send this bipartisan agreement to the president’s desk or the federal government will default for the first time ever.” (New York Times / Washington Post / Politico / Wall Street Journal / Bloomberg / CNBC / CNN)

💡 What are the consequences of default? A U.S. default would likely cause severe disruption to financial markets worldwide – including declines in the value of your retirement savings and other investments. A default could also result in a recession, which may lead to job losses, hiring freezes, and increased borrowing costs for the U.S. government. Higher interest payments on government debt potentially leads to increased budget deficits, which impact government spending.

2/ Federal prosecutors obtained an audio recording of Trump acknowledging that he held onto a classified document after leaving the White House. On the July 2021 recording, Trump indicates that he wanted to share the classified document about a potential attack on Iran but the attendees didn’t have sufficient security clearances. The meeting was with two people working on the autobiography of Mark Meadows. The recording suggests that Trump understood he retained classified material, contrary to his repeated claims that he could retain presidential records and “automatically” declassify documents. Special counsel Jack Smith’s investigation has focused on the meeting as part of the criminal investigation into Trump’s handling of classified documents after leaving the White House. (CNN / New York Times / Washington Post / NBC News / Politico)

💡 Why should I care? Government documents are classified to protect national security. Document classification ensures that sensitive information, like intelligence sources, defense strategies, diplomatic relations, and details about ongoing operations are safeguarded from unauthorized access or disclosure.

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