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[0] President Biden warned Monday that the U .S. may default on debt payments due this month.
[1] And he's already blaming Republicans, saying they won't cooperate on raising the debt ceiling.
[2] We'll take a look at the impending deadlines and what the consequences of a default would be.
[3] I'm Georgia Howe with Daily Wire, editor -in -chief John Bickley.
[4] It's Tuesday, October 5th, and this is Morning Wire.
[5] The Supreme Court began its new term Monday.
[6] On the docket, abortion, gun rights, the death penalty, and separation of church and state.
[7] How will the majority conservative court rule on these contentious issues?
[8] And China grows increasingly aggressive toward Taiwan, while the Biden administration sends mixed messages to the communist superpower.
[9] We'll hear about China's latest moves and discuss the administration's handling of the growing threat.
[10] Thanks for waking up with Morning Wire.
[11] Stay tuned.
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[19] The world's leading credit agencies have warned that the U .S. credit rating could be downgraded if Congress fails to raise the debt ceiling in the next two weeks.
[20] Here to talk about the current state of the debate and its potential implications is Daily Wire reporter Ben Johnson.
[21] Ben, welcome.
[22] Thanks, Georgia.
[23] So everyone seems to agree that it's important to raise the debt ceiling, but congressional leaders can't seem to make that happen.
[24] What's behind this impasse?
[25] Congress is gridlocked on raising the debt ceiling, which authorizes the federal government to borrow more money to pay for previous deficit spending and to finance interest on the national debt.
[26] The process isn't usually contentious.
[27] The debt ceiling has been raised 78 times since 1960.
[28] But Senate Minority Leader Mitch McConnell has said that since Democrats are content to pass large deficit spending bills on their own, no Republican will join them in voting to raise the debt ceiling this time.
[29] Democrats have talked about eliminating the need for Republican votes by raising the debt ceiling through the reconciliation process.
[30] They had assumed they'd do that through the $3 .5 trillion spending package, but you know how that worked out.
[31] Right.
[32] Democrats can't agree amongst themselves about the amount or the contents of that bill.
[33] So they're stuck.
[34] What happens if the U .S. doesn't raise the debt ceiling?
[35] Janet Yellen has said the Treasury will run out of cash on hand on October 18th.
[36] Once that happens, the United States would not have enough money to pay all its bills, and it would technically default on some of its obligations until it has enough revenue to make good on all of its bills.
[37] So a temporary default.
[38] Right.
[39] And how if global markets responded to this news?
[40] credit agencies have threatened to downgrade the U .S. credit rating, which hasn't happened since 2013.
[41] That's when Standard & Poor's lowered our credit rating for the first time ever, from AAA to AA Plus.
[42] None of the other credit agencies followed suit at the time, but this weekend, one of S &P's competitors, Fitch, released a statement saying that failure to raise the debt ceiling would lead them to lower our credit trustworthiness in a targeted way.
[43] And S &P has threatened to reduce the U .S. credit rating even further, lowering our standing from the current AA plus to its lowest possible rating, which is D. And how would that impact the U .S. economy?
[44] A credit downgrade would cause real harm to the U .S. economy.
[45] We know that from history because despite what some media outlets have reported, the U .S. actually has defaulted before due to a congressional oversight in April and May of 1979.
[46] That move increased interest rates on T -bills by 6 tenths of a percent for several months.
[47] That's bad for consumers because the rate of treasury bills affects the interest they pay on fixed -term mortgages.
[48] President Joe Biden warned about some of these potential impacts during his remarks on Monday.
[49] People may see the value of their retirement accounts shrink.
[50] They may say interest rates go up, which will ultimately raise their mortgage payments and car payments.
[51] And the American people, look, I just say this way.
[52] As soon as this week, your savings and your pocketbook could be directly impacted by this Republican stunt.
[53] The credit agencies say they will not downgrade the U .S. credit rating until the Treasury actually defaults on the first payment.
[54] So it's not likely these economic consequences will happen, quote, before the default date.
[55] And this debt limit deadline also comes at the same time that we're hearing some serious inflation warnings.
[56] Yeah, the Federal Reserve Bank of Atlanta just announced that it's seeing, quote, sharp accelerations in underlying inflation.
[57] That means the decades high inflation we've seen this year isn't due just to a few commodity prices or a short -term spending bill, but it's a systemic problem.
[58] Economists call inflation a hidden tax because it reduces the value of the dollar, which reduces wages in real terms.
[59] It punishes especially retirees and people on a fixed income.
[60] Right.
[61] Ben, thank you.
[62] It's my pleasure.
[63] That's Daily Wire reporter, Ben Johnson.
[64] Coming up, the Supreme Court's new term has begun.
[65] We'll walk through several consequential cases they'll weigh in on.
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[69] On Monday, all eyes were on the Supreme Court as the nine justices reconvened for what's expected to be the most consequential term in recent history.
[70] With several blockbuster cases set to be heard, leaders on both sides of the aisle are gearing up for political battle.
[71] Here are the details as Daily Wire managing editor, Cabot Phillips.
[72] So Cabot, before we get into the specific cases, give us a little context here.
[73] Yeah, so it was a relatively quiet year for the Supreme Court in 2020.
[74] A lot of conservatives were thrilled by the six -three majority they gained in court after President Trump's three appointments, but they felt a bit let down by the lack of major victories.
[75] This term could be the first time we really see the influence of justices Gorsuch, Kavanaugh, and Connie Barrett.
[76] They're set to rule on the carrying of firearms outside the home, taxpayer support for private religious schools, the rule of race and college admissions, and most importantly, the legality of pro -life heartbeat bills.
[77] Yeah, let's actually start with that first.
[78] The abortion case, what exactly is at stake?
[79] Yeah, this one's sort of being viewed as the granddaddy of them all for this term.
[80] So some quick background.
[81] In 2018, Mississippi passed a pro -life bill banning abortion after 15 weeks.
[82] It was quickly held up in federal court, though, because it directly contradicted Roe v. Wade, which, as you know, said that women had a constitutional right to abortion up until at least the fifth month of pregnancy.
[83] On December 1st, the Supreme Court will decide whether that Mississippi law is constitutional.
[84] And if they rule it is, that would obviously deal a major blow to Roe v. Wade and essentially set a new legal precedent on abortion.
[85] Yeah, I mean, that would be obviously huge.
[86] What would the ramifications be?
[87] Well, right off the bat, it would allow states across the country to enact sweeping pro -life legislation of their own.
[88] Right now, a dozen states have passed bills that prevent abortions once a heartbeat is detected, but they've all been held up by legal challenges, all except for the new Texas law, which has been allowed to remain in effect for now, but that's because its enforcement is different.
[89] It's civil.
[90] Right.
[91] We've looked closely at that law a few times.
[92] Right.
[93] Now, a ruling here in favor of the Mississippi law would almost certainly allow those bills to take effect once more.
[94] And it's hard to overstate just how big this ruling could be for the pro -life movement.
[95] You're right.
[96] That would really change the landscape.
[97] Let's look now at the Second Amendment, the concealed carry case.
[98] What do we need to know about that one?
[99] Yeah, this one is a huge deal because it's the first Second Amendment case the Supreme Court has heard in over a decade.
[100] It revolves around the right to carry firearms outside of the home.
[101] So New York State currently makes it incredibly difficult to obtain a permit to carry a firearm, concealed.
[102] Right now, they really only give them out to former cops and celebrities and anyone who can prove they're in danger, but that's the heart of this.
[103] In this case, the Supreme Court will be deciding whether New Yorkers have to demonstrate a special need for a firearm.
[104] If they have to show the government, hey, here's why I need it, or if they can just tell the government they have a desire for self -defense, and that's enough, that's what this hinges on.
[105] So if they rule that all New Yorkers should have access to concealed carry permits if they want one, it would set a precedent that Second Amendment activists could rely on in states with strict gun control and basically open the door for them to put forward legal challenges against restrictive gun policies.
[106] So a potential game changer there for gun rights.
[107] And what else are we keeping an eye on?
[108] There are two other cases grabbing the most attention right now.
[109] The first comes out of Maine.
[110] In this one, the court will decide whether states that use taxpayer funds to cover school tuition on behalf of parents are allowed to exclude religious schools.
[111] The other major case involves the role of race and college admissions.
[112] The court has, in the past, allowed schools to consider an applicant's race when making a decision, but a new case out of Harvard could offer them the chance to reverse those prior rulings.
[113] So two more areas impacted there, both of these education.
[114] But again, you just cannot overstate how big this coming term could be for getting some huge new legal rulings.
[115] Wow, so religious freedom, race, gun rights, and abortion.
[116] You weren't kidding.
[117] There's a lot on the docket here.
[118] It's all there.
[119] Thank you so much, Cabot, for coming on.
[120] Anytime.
[121] Managing editor, Cabot Phillips.
[122] With the Biden administration seeking a diplomatic solution to foreign policy issues and conflicts, Focus is returning to the military aggression of China and their drive to gain control of Taiwan.
[123] Here to explain is Daily Wire's Ian Howarth.
[124] So, Ian, China has made threats towards Taiwan in the past, and now we're seeing this.
[125] What's going on?
[126] Yeah, the situation in the Indo -Pacific is becoming even more unstable, and communist China is at the center of the turbulence.
[127] On Monday, the Chinese Air Force sent over 50 military jets into Taiwan's airspace, which is the largest incursion of this type ever by China, at least for now.
[128] According to Taiwan's military, the aircraft included 34 fighter jets, anti -submarine aircraft, and early warning and control planes.
[129] And what's the response been from Taiwan?
[130] So Taiwan's foreign minister said that, quote, the defense of Taiwan is in our own hands.
[131] and he added that they are committed to defending their country.
[132] If China is going to launch a war against Taiwan, we will fight to the end, he said.
[133] He then added that Taiwan wants to engage in security or intelligence exchanges with other like -minded partners, including Australia.
[134] And then what about the Biden administration?
[135] Are they taking any concrete action towards China?
[136] Yeah, that's when things get a little less clear.
[137] While the threat of China in the region, both to Taiwan and other territories, is pretty widely accepted, the Biden administration has been both vague and inconsistent when it comes to China.
[138] On Sunday, for example, the State Department released a statement saying that, quote, the United States is very concerned by the People's Republic of China's provocative military activity near Taiwan.
[139] We urge Beijing to cease its military, diplomatic, and economic pressure and coercion against Taiwan.
[140] But last week, on the People's Republic of China National Day, Secretary of State Anthony Blinken released a statement extending congratulations to the people of China.
[141] He wrote, quote, as the United States seeks to work cooperatively to solve the challenges we all face.
[142] We wish the people of the PRC peace, happiness, and prosperity over the coming year.
[143] So on the one hand, the Biden administration is expressing concern, while on the other, they're promoting cooperation and diplomacy.
[144] And it's the latter which falls more in line with the higher level rhetoric of Biden's foreign policy.
[145] During his UN speech, we should remember, Biden pushed for relentless diplomacy.
[146] And as we close this period of relentless war, we're opening a new era of relentless diplomacy.
[147] And on the economic side, the U .S. is planning to launch new trade talks with China, but they will also keep tariffs on Chinese imports in place.
[148] So we're continuing with the tariffs President Trump put in place.
[149] Yeah, those same tariffs.
[150] And with China becoming more aggressive, both in the Indo -Pacific and across the world, and the Biden administration's lukewarm and inconsistent response, many people are concerned that the situation is going to bubble over and break out into all -out war.
[151] Right.
[152] And there's some concern that the West might not step up to assist Taiwan right now if China were to attack.
[153] In that context, it's pretty concerning.
[154] Yeah, that's for sure.
[155] Ian, thanks for the update.
[156] That's Daily Wires, Ian Howarth.
[157] Other stories we're tracking this week.
[158] The Los Angeles Unified School District, the second largest school district in the country, saw its enrollment drop by more than 27 ,000 students this year.
[159] That's a 6 % year -over -year decline, and the sharpest drop in recent years.
[160] Early elementary grades were the most affected.
[161] After a year and a half of closed borders and heavy restrictions, New Zealand is abandoning its COVID -Zero policy.
[162] New Zealand's prime minister stated on Monday, quote, with Delta, the return to zero is incredibly difficult, and our restrictions alone are not enough to achieve that quickly.
[163] In fact, for this outbreak, it's clear that long periods of heavy restrictions has not gotten us to zero cases.
[164] If you like this episode and are interested in hearing more, subscribe to MorningWire on Apple Podcasts, Spotify, or wherever you're listening, and give us a five -star review.
[165] That's all the time we've got this morning.
[166] Thanks for waking up with us.
[167] We'll be back tomorrow with the news you need to know.
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