The “Infrastructure” Bill

Republicans Cave Were you forwarded this email? [Sign-up to The Daily Reckoning here.]( [Unsubscribe]( [Daily Reckoning] The “Infrastructure” Bill - 19 Senate Republicans cross the aisle to sign off on the $1.2 trillion Democratic “infrastructure” bill… - “Bait and switch”… - Will Republicans use the debt ceiling as leverage to stop a $3.5 trillion follow-on bill?… Recommended Link [George Gilder: “5G will soon be exposed as hype and hustle.”]( [Read more here...]( Gilder believes a radical paradigm change is taking place in the tech world – one that could disrupt the existing 5G industry. It isn’t the first time he’s shocked the tech world… Gilder predicted the smartphone in 1991… identified Amazon in 1998, before it rose 243,000% over 23 years… and helped his followers make 40x their money in less than four years on Qualcom in the late 1990s. Now he’s at it again… [Get His Full Prediction Here]( Annapolis, Maryland August 12, 2021 [Brian Maher]Dear Reader, We are surprised only that so many are surprised… 19 Republican members of the United States Senate hoisted a truce flag… came to terms with their Democratic foes… and signed their names a $1.2 trillion “infrastructure” bill. Thus the 2,700-page Infrastructure Investment and Jobs Act is the “bipartisan” Infrastructure Investment and Jobs Act. How many horses were traded? How many backs were scratched? How many palms were slicked? Which senators got the heaviest sugaring? We do not have all answers at this time. We have instructed our minions to investigate the particulars. We ordered them off at flank speed, and informed them we expect a detailed report very, very soon. Yet we know a 2,700-page bill can conceal a great deal of rascality… as high grass can conceal a snake… or a woodpile may conceal a skunk. Our men have shoveled up one telling detail, very much in point… Senator Joe Manchin Holds the Cards The United States Senate is a house divided against itself — plum down the middle — 50-50. Senator Joe Manchin is the senior senator from the state of West Virginia. He is a Democrat. Yet Senator Manchin is widely considered a “moderate” Democrat. He will graze against the grain when his conscience demands it… and buck his party. He is therefore a sort of makeweight. He can lower his thumb upon the legislative scales… and throw them tipping in either direction. Given the senatorial mathematics, Democrats need him thumbing the scales their way. Else they are unable to shoulder through their ambitious agenda. Thus an “open for business” sign hangs upon his door in the Hart Senate Office Building. He can charge pretty premiums for his allegiance: “What do I get in return?” It’s Not What You Know... Now consider: Senator Manchin is married to a certain Gayle Connelly Manchin. Mrs. Manchin chairs a body named the Appalachian Regional Commission. Mr. Biden appointed her to this august position. You might be surprised to learn: The Infrastructure Investment and Jobs Act — of which Sen. Manchin is a sponsor — jams $1 billion into the back pocket of the Appalachian Regional Commission. Please ask yourself this question: Is it coincidence that the Infrastructure Investment and Jobs Act — of which Sen. Manchin is a sponsor — jams $1 billion into the back pocket of the Appalachian Regional Commission? For the matter of that… is it coincidence that Mr. Biden nominated Mrs. Manchin to chair the Appalachian Regional Commission in the first instance? We hazard these are not coincidences. Yet we have additional questions... Why Did 19 Republicans Go Along? Why did 19 Republican senators sign their names on Mr. Biden’s dotted line? Why did these illustrious gentlemen and ladies deliver him a political win? They were aware this $1.2 trillion “hard infrastructure” bill… which is perhaps 20% infrastructure… is tied up to a $3.5 trillion “soft infrastructure” bill to follow. That is, tied up to a $3.5 trillion “human infrastructure” bill. That is, tied up to a $3.5 trillion social spending bill. That is, tied up to a $3.5 trillion bread and circuses extravaganza. Do we speculate? We do not speculate. Speaker Pelosi has already declared her intent. She has already spread her playing cards upon the gaming table. Reports The Hill: Pelosi, since the infrastructure talks launched in earnest months ago, has adopted the position that the House will not turn to the $1 trillion infrastructure package until the Senate passes a much larger $3.5 trillion package chock full of Democratic social benefits programs and climate initiatives… The Speaker has also been clear that the infrastructure package alone is insufficient to tackle the challenges facing the country when it comes to economic inequality, health care disparities, workers rights and the warming planet. It’s those issues that Democrats will address in the second legislative package, which is expected to move under special budget rules, known as reconciliation, which preclude the Republicans’ filibuster powers and allow Senate Democrats to pass the measure with a simple majority. Recommended Link [World’s Richest Man’s Latest Bombshell]( [Read more here...]( His first BOMBSHELL shook the retail industry and completely turned it upside down. And now the man is targeting another $2 trillion industry with his latest BOMBSHELL. It could bankrupt household name companies. It could disrupt established industries... It could make folks like you a fortune. The fuse has already been lit... and on August 23 I believe he’ll reveal a few more details. If you missed out on taking advantage of the Amazon success story... don’t miss out again. [Click Here Now]( A second Hill article affirms Republicans knew well the “bait and switch” for which they were falling: The Republicans knew ahead of time that there would be another bill with a total price tag of $3.5 trillion. They were told of the bait and switch. The second spending plan is led by the self-described democratic socialist, Sen. Bernie Sanders (I-Vt.). No matter what Republicans say about making it painful for Democrats to pass the second bill, their ignorance of reality is how this will be used against them. The Debt Ceiling Minority Leader Mitch McConnell seems to believe he holds an ace card up his shirtsleeve — the debt ceiling. The debt ceiling represents the total amount of money the federal government is authorized to borrow. In 2019, Congress suspended the debt limit until July 31, 2021. The ceiling was reestablished at $28.5 trillion. As of this afternoon… August 12, 2021… the national debt runs to $28.6 trillion. That is, above the previously established ceiling. Absent a resolution to elevate the debt ceiling anew, the government cannot borrow additional monies. Ms. Janet Yellen and her Treasury Department have begun resorting to “extraordinary measures” to keep the government in funds. Yet the Congressional Budget Office estimates the national strongbox will empty in October or November — absent a deal. How can a government running a $2 trillion budget deficit... rub along if it cannot constantly borrow? The question is the answer. Each and every species of calamity would follow, we are warned. Ms. Yellen moans about the “irreparable harm to the U.S. economy and the livelihoods of all Americans” that would befall the nation. Will Republicans Use the Debt Ceiling as Leverage? But Senator McConnell has summoned his blood… drawn his line in the beach sand… and hunkered in. He will not aid and abet Democrats’ $3.5 trillion spree, he thunders: Our friends across the aisle should not expect traditional bipartisan borrowing to finance their nontraditional reckless taxing and spending spree. That's not how this works. Senate Democrats are wagering that the senior senator from Kentucky will buckle under the political pressure that will fall upon his slender shoulders. Washington Senator Patty Murray, a Democrat, gives him a dare: “Nobody wants to be responsible for a major economic disaster. So my guess is in the fall, he won’t be saying that.” Argues Democratic Senator Brian Schatz of Hawaii: “I am predicting, with absolute certainty, it will resolve itself uneventfully. Because it always does.” Meantime, Senate Budget Chair Bernie Sanders (I-Vt.) shoveled up Senator McConnell’s words from the previous debt ceiling “debate:” Look what I have right here: These are all the quotes of Mitch McConnell, who has said, ‘We will never have America default.’ And he’s right. At the end of the day, Republicans understand ... they’re not going to destroy the economy. We are with Senator Sanders and his Democratic mates... Fat Chance Republicans Hold Firm Senator McConnell and his Republicans will blink their eyes. They will erase the line they drew across the sand. They will agree to raise the debt ceiling. We will eat each and every word of this article — without salt, without butter — if wrong. There may be some limited breaking of lances for honor’s sake. Some slight amount of blood might be drawn… as sometimes blood is drawn in a professional wrestling bout. And for the same reason — to give a good show. But the blows are false, and the combat is staged. Democrats may agree to scalpel out some blubber from the flanks of the $3.5 trillion enormity they propose. Republicans will proceed to raise their arms in victory. They will yell about delivering a blow for fiscal conservatism. They will then agree to raise the debt ceiling… and shake hands on a $3.49 trillion bill. Regards, [Brian Maher] Brian Maher Managing Editor, The Daily Reckoning Editor’s note: Inflation is increasing, and all the proposed government spending could make it a lot worse. But they can’t print gold. Gold (and silver) are REAL money that has held value over thousands of years. That’s why we strongly recommend that you own physical gold and silver. 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Please send all feedback to [feedback@dailyreckoning.com.](mailto:dr@dailyreckoning.com) [Brian Maher][Brian Maher]( is the Daily Reckoning's Managing Editor. Before signing on to Agora Financial, he was an independent researcher and writer who covered economics, politics and international affairs. His work has appeared in the Asia Times and other news outlets around the world. He holds a Master's degree in Defense & Strategic Studies. Add feedback@dailyreckoning.com to your address book: [Whitelist us]( Additional Articles & Commentary: [Daily Reckoning Website]( Join the conversation! Follow us on social media: [Facebook]( [LinkedIn]( [Twitter]( [RSS Feed]( [YouTube]( The Daily Reckoning is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Paradigm Press delivering daily email issues and advertisements. 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