Connect with us

Published

on

As the clock ticks toward a possible default on the national debt, Speaker of the House Kevin McCarthy (RCalif.) and top Democrats in Washingtonas well as media allies on both sidesare locked in a staring contest over who can take the matter less seriously.

The latest development in this slow-motion train wreck was a speech McCarthy delivered Monday from the New York Stock Exchange. “Debt limit negotiations are an opportunity to examine our nation’s finances,” he said, stressing that a bill to raise the nation’s debt limit would only get through the House if it was pared with spending cuts. The House will vote on such a bill within “the coming weeks,” McCarthy promised.

So far, so good. A debt default would be an economic catastrophe for the country and should be averted at all costsbut McCarthy is right that this is a good opportunity to examine America’s out-of-control borrowing habit. Raising the debt ceiling doesn’t authorize more borrowing. It merely gives the Treasury permission to borrow funds to pay for what Congress has previously agreed to spend. But it is the moment when past congressional budgeting decisions come home to roostthe equivalent of seeing your credit card statement after a blowout vacation that you couldn’t afford. You still have to pay the bills, but it should be a wake-up call.

But while McCarthy is saying some of the right things about this situation, he still doesn’t seem to have much of a plan for what to do. Monday’s speech was devoid of specifics beyond a promise to cut spending back to last year’s levelssomething he’s been proposing since January, just weeks after the passage of a year-end omnibus bill that hiked spending across the boardand some rather vague promises about tightening work requirements for welfare programs.

Notably absent from Monday’s speech was any promise about balancing the budget in 10 years, something that had been part of the House GOP’s earlier list of demands for the debt ceiling negotiations. AsReason has previously noted, it’s pretty much impossible to make the budget balance in a decade without making serious alternations to entitlement programs including Social Security and Medicare, and McCarthy has promised not to touch those as part of the debt ceiling package.

Importantly, it remains unclear whether even this narrower list of prospective ideas can pass the GOP-controlled House. Asked in an interview on CNBC just moments after his New York speech ended, McCarthy refused to give a straight answer about whether he had enough votes for this still-murky debt ceiling package.

As Democrats were quick to point out, McCarthy’s “plan” is little more than a series of starting points for negotiations. “What we got today was not a plan,” Senate Majority Leader Chuck Schumer (DN.Y.) told NBC News after McCarthy’s speech. “It was a recycled pile of the same things he’s been saying for months.”

But, well, Democrats are just recycling the same things they’ve been saying for months too. The White House has been steadfast in refusing to negotiate with House Republicans until McCarthy presents a full-fledged budget proposal like the one President Joe Biden presented on March 9. “I don’t know what we’re negotiating if I don’t know what they want, what they’re going to do,” Biden reiterated to reporters over the weekend.

This is an unserious approach too. Both McCarthy and Biden (and everyone else involved) are well aware of why Democrats want to see a full Republican budget plan before they start negotiatingand it has very little to do with the debt ceiling. Instead, Democrats will pick apart the proposal to score political points by criticizing whatever spending cuts the House GOP outlines.

Indeed, Democrats and their allies are already eager to demagogue the bare bones of what McCarthy has outlined. Liberal Substacker Matt Yglesias says it is “irresponsible for Kevin McCarthy to run around threatening to blow up the global economy in order to snatch poor people’s health care away.” At Talking Points Memo,David Kurtz is already decrying the “draconian spending cuts” that McCarthy has proposed. That’s insane, because McCarthy’s so-called plan merely calls for rolling back federal spending to the level it was at in 2022a whole four months ago.

Here’s the really crazy thing: Even if Congress did somehow manage to hold the discretionary spending level next year, overall spending would still increase. That’s because the $1.7 trillion discretionary budget is only a fraction of federal spending. Other itemslike the so-called mandatory spending on entitlements like Social Security and Medicare as well as the rapidlyincreasinginterest costsconnected to the $31 trillion national debtwill continue to grow and drive federal deficits higher.

The crux of this problem is two-fold. First, Republicans have spent the better part of the past decade completely ignoring fiscal policywhile in many cases actively chasing out members who did care about this stuff. As a result, the GOP has very little institutional sense of what a solidly conservative federal budget would actually look like. Is there any spending plan that would get the support of all 222 Republican members right now? McCarthy doesn’t seem to know.

Second, Democrats have demonstrated an utter unwillingness to acknowledge that America has a serious borrowing problem, which must be the starting point for any negotiation about the debt ceiling regardless of what other policies may or may not end up being part of the final package. They don’t need to see a full budget proposal to acknowledge things like the Congressional Budget Office’s forecast that says the federal government is on track to spend $10.5 trillion on interest payments in the next decadeand more if interest rates remain higher than expected.

Why should Republicans put forth a budget plan when they know in advance that Democrats only want to use it to paint the GOP as a party of benefit-cutting skinflints? Why should Democrats negotiate in good faith when they know quite well that Republicans only care about fiscal responsibility when a Dem is in the White House? Neither side has much to gain from doing what the other wants, so no one moves.

But the impasse created by years of poor, myopic decision making in Washington is pushing the federal government ever closer to a dangerous cliff. McCarthy and Biden need to get serious about this, and soon.

Continue Reading

US

Trump engaged in unprecedented criminal effort to overturn 2020 election, prosecutor’s report says

Published

on

By

Trump engaged in unprecedented criminal effort to overturn 2020 election, prosecutor's report says

President-elect Donald Trump engaged in an unprecedented criminal effort to overturn his 2020 election defeat, according to a report by Special Counsel Jack Smith.

Prosecutor Mr Smith said Mr Trump “inspired his supporters to commit acts of physical violence” in the January 6 riots and knowingly spread a false narrative about fraud in the 2020 election.

However, efforts to bring Mr Trump to trial over his attempt to hold on to power were thwarted by his re-election in November, the special prosecutor said in his report, which was released by the Department of Justice on Tuesday.

He also found charges could be justified against Mr Trump’s co-conspirators but reached no final conclusions.

FILE - Rioters loyal to President Donald Trump rally at the U.S. Capitol in Washington, Jan. 6, 2021. (AP Photo/Jose Luis Magana, File)
Image:
Rioters loyal to President Donald Trump rally at the US Capitol on 6 January, 2021. Pic: AP

Mr Smith resigned in the wake of Mr Trump’s election victory in November.

“Indeed, but for Mr Trump’s election and imminent return to the Presidency, the Office assessed that the admissible evidence was sufficient to obtain and sustain a conviction at trial,” Mr Smith’s report said.

The release of the report comes a few days after Mr Trump was sentenced following his conviction in the Stormy Daniels hush money case.

FILE - Special counsel Jack Smith speaks to the media about an indictment of former President Donald Trump, Aug. 1, 2023, at an office of the Department of Justice in Washington.  (AP Photo/J. Scott Applewhite, File)
Image:
Special counsel Jack Smith. Pic: AP

President-elect Mr Trump has consistently criticised Mr Smith and allies have suggested the special counsel should now face criminal charges for pursuing the case against him.

In the wake of the release of the report, Mr Trump called Mr Smith “deranged” and criticised the report’s “fake findings”.

Released alongside the report was a letter from lawyers for Mr Trump to the justice department, dated 6 January 2025.

In it, they called for Mr Smith to “terminate all efforts toward the preparation and release” of the report, which they said was “consistent with the bad-faith crusade” that they said Mr Smith conducted on behalf of the Biden-Harris administration.

The special prosecutor defended his investigation, saying: “The claim from Mr Trump that my decisions as a prosecutor were influenced or directed by the Biden administration or other political actors is, in a word, laughable.”

Read more:
January 6: The case against Donald Trump
January 6: How four hours of mayhem unfolded

Please use Chrome browser for a more accessible video player

Hush money case: Trump reacts to becoming a felon

Mr Smith’s case had faced legal hurdles even before it was clear that Mr Trump would be returning to the White House.

It was paused for months as the former president pursued a legal claim that he could not be prosecuted for official actions taken during his time as commander-in-chief.

The Supreme Court, with its conservative majority, largely agreed with him, granting former presidents broad immunity from criminal prosecution.

Other allegations in the report released today include:

• Mr Trump contacted legislators and executives at state level and “urged them to take action to ignore the vote counts and change the results”

• Mr Trump and co-conspirators launched a plan to use fraudulent electors in seven states that he had lost in the 2020 election to send false certifications to Washington DC

• Frustrated with the justice department because it had identified no evidence of substantial fraud in the 2020 election, Mr Trump “attempted to wield federal power to perpetuate his fraud claims and retain office”

• Mr Trump repeatedly pressed then vice president Mike Pence to use his ministerial position as president of the Senate to change the election outcome – something Mr Pence repeatedly refused to do.

Continue Reading

US

Police investigating ‘possible human cause’ behind Los Angeles wildfire

Published

on

By

Police investigating 'possible human cause' behind Los Angeles wildfire

Police are reportedly focusing on a possible human cause in early investigations into what caused the deadly Palisades fire in Los Angeles.

Several law enforcement sources told Sky’s partner site NBC News potential lines of inquiry involve fireworks or unauthorised individuals camping in the area.

Stressing no conclusions have been reached, they said other possibilities include accidental equipment-related ignition, and said arson is not being ruled out.

Fires latest – at least 24 people killed

Please use Chrome browser for a more accessible video player

Sky presenter challenges LA officials

At least 24 people have been killed and thousands of homes destroyed in the wildfires that have raged across Los Angeles.

Most of the destruction has been wrought by the Palisades fire, which has torched nearly 24,000 acres and is just 14% contained, according to the California Department of Forestry and Fire Protection (Cal Fire).

Officials have not yet identified the cause of any of the Los Angeles fires.

More on California Wildfires

Pic: Reuters
Firefighters put out a smouldering hot spot. Pic: Reuters
Image:
Firefighters put out a smouldering hot spot. Pics: Reuters

A lawsuit has been filed against utility company Southern California Edison claiming its equipment sparked the Eaton fire.

The blaze in the foothills of the San Gabriel Mountains east of the city has burned through 14,000 acres and was 33% contained, according to Cal Fire.

Where some of the fires are

Edison has acknowledged fire agencies are investigating whether its equipment may have started a smaller fire in the LA area that broke out on the same day.

Read more:
Santa Ana winds that fuelled wildfires are back – here’s what it could mean

A woman walks past destroyed homes. Pic: Reuters
Image:
A woman walks past destroyed homes. Pic: Reuters

It comes as additional firefighters and water tankers have deployed ahead of the forecast return of fierce Santa Ana winds which threaten to whip up the two massive wildfires.

Planes have been working to douse homes and hillsides with pink fire-retardant chemicals, while dozens of water trucks have worked to replenish supplies after hydrants ran dry last week.

“We’re absolutely better prepared,” LA County Fire Chief Anthony Marrone said when he was asked what will be different from a week ago.

But he warned high winds could ground firefighting aircraft and said if they reach 70mph “it’s going to be very difficult to contain that fire”.

A third fire that has burned nearly 800 acres is 95% contained, while three other fires in California have been fully brought under control in recent days.

Continue Reading

Science

Pixxel to Launch India’s First Private Satellite Network

Published

on

By

Pixxel to Launch India’s First Private Satellite Network

India’s Pixxel is set to launch three of its six hyperspectral imaging satellites aboard a SpaceX rocket from California on Tuesday, the first such network in the country’s nascent private space sector, Pixxel’s chief told Reuters.

The satellites will be placed in a sun-synchronous orbit at roughly 550 km, with the remaining three slated for deployment in the second quarter of the year.

The launch is scheduled to take place at the Vandenberg Space Force Base at around 10:45 a.m. Pacific Time (1845 GMT) on Tuesday – just after midnight the next day in India – subject to final approvals.

Pixxel’s founder and chief executive Awais Ahmed told Reuters that it plans to add 18 more spacecraft to the six it has already developed, eyeing a share of the satellite imaging market projected to reach $19 billion (roughly Rs.1,64,451 crore) by 2029.

The launch is a milestone for India’s nascent private space sector and for Google-backed Pixxel, a five-year-old startup.

It aims to use hyperspectral imaging — a technology that captures highly detailed data across hundreds of light bands — to serve industries such as agriculture, mining, environmental monitoring, and defence.

The company says its satellites can deliver insights to improve crop yields, track resources, monitor oil spills and country borders in much better details than current technology allows.

“The satellite imagery market today is around $4.3 billion (roughly Rs. 37,219 crore), with analysis adding another $14 billion (roughly Rs. 1,21,180 crore). By 2029, the market is projected to reach $19 billion (roughly Rs. 1,64,457 crore). Hyperspectral imaging, which is new, could realistically capture $500 million (roughly Rs. 4,327 crore) to $1 billion (roughly Rs. 8,676 crore) of this, plus additional revenue from analysis,” Ahmed said.

Ahmed said Pixxel has signed up around 65 clients, including Rio Tinto, British Petroleum, and India’s Ministry of Agriculture, with some already paying for data from its demo satellites. Contracts are in place for future data from the Firefly constellation.

“For defence-use cases, conversations are happening predominantly in the US and India, and in other regions through resellers and partners. Usually, government agencies want to see things launched and working before committing to procurement,” Ahmed, 27, said.

Pixxel expects to make first contact with the satellites about two-and-a-half hours after launch, with full commercial imaging capabilities expected by mid-March.

However, its expansion plans face stiff competition in a global satellite market dominated by the United States and China.

The US leads in commercial and government satellite launches, driven by private companies like SpaceX and government contracts, while China has emerged as a competitor with aggressive state-backed initiatives and a rapid expansion into low Earth orbit satellites.

India, despite its established spacefaring capabilities, holds only a two percent share of the global commercial space market. The government is now banking on private players to increase that share, aiming to grow the country’s space sector from $8 billion (roughly Rs. 69,258 crore) to $44 billion (roughly Rs. 3,80,976 crore) by 2030.

Pixxel hopes to leapfrog these challenges with its Firefly constellation, which boasts a 5-meter resolution and a 40-km swathe width—outperforming competitors such as Finland’s Kuva Space and San Francisco-based Orbital Sidekick, whose satellites typically have lower resolution and narrower coverage.

“If and once their commissioning is successful, they’ll have more imaging capacity than ISRO in the hyperspectral band, which for the Indian industry is a watershed moment,” said Narayan Prasad, chief operations officer at Netherlands-based space industry marketplace Satsearch.

© Thomson Reuters 2025

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Continue Reading

Trending