Our Fiscal House
News Roundup Apr 28 - May 1
X-Date: 1 Month Away?
The ‘X-Date’ is the day when the US Treasury could run out of emergency debt-limit measures. Treasury Secretary Janet Yellen sent a letter to Congress on Monday stating that a slowdown in tax receipts could see X-Date move forward to June 1st - one month away. Prior estimates ranged from early June to sometime in the fall. If there is no deal on raising the debt ceiling between the Biden Administration and Congress, then it will be unchartered territory on how the US Government pays its bills.
A tidbit from Yellen’s letter indicates that tax receipts have fallen 35% from last year’s levels. This has given critics of the Biden economy fodder for their case.
Whether it is related to the X-Date, Biden changed course and invited GOP Speaker McCarthy to the White House on May 9th for talks.
AG Gets Nod From Court to Continue Investigation
On Friday, a District Judge ruled that the Attorney General’s investigation into possible illicit funding of child care providers can continue. A number of the provider groups had sued claiming the information demand from the AG was onerous, but they will now have to comply. There is still a suit against the AG by Dave Jeppesen and Idaho Department of Health and Welfare workers claiming also that the AG’s demands are too burdensome.
The ruling may impact another investigation of the AG’s office looking into misused COVID-19 funds. Organizations are also claiming the information request is ‘overwhelming.’
First Republic Bank Fails
It is the second largest bank failure in US History as First Republic was seized early Monday and sold off to JP Morgan Chase. The move reignited concerns over the stability of the banking industry, particularly smaller regional banks. However, critics of First Republic’s business practices point to an over reliance on wealthy clients who withdrew their deposits over fears of a bank run. This forced the banks to liquidate holdings at a discount in order to meet withdrawal demands.
JP Morgan expects the move will add $500 million to their net income annually but will incur $2 billion in costs from the acquisition.
Is Extremism a Threat to Idaho?
Rep Steve Berch wrote an opinion piece on Friday claiming that too many Idahoans do not feel safe. Berch then mentions people of color, doctors, librarians, expectant mothers, the LGBT community, school board trustees and traditional Republicans that are all finding common ground over the issue of safety and the concern of growing extremism in Idaho. Is their concern justified or is it a political tactic?
"Is Extremism a Threat to Idaho? Is their concern justified or is it a political tactic?" The only extremism in Idaho is from the left, and it's definitely a threat to Idaho.