The U.S. Treasury is estimating that the U.S. could default on its debt payments by June 1, earlier than previously thought. The refusal of Republican hostage takers to vote a clean debt ceiling increase makes them the clear obstacle in the situation, in which they are trying to extort spending cuts in exchange. From the Washington Post report:
"President Biden on Monday invited House Speaker Kevin McCarthy (R-Calif.) and other congressional leaders to the White House next week to discuss the debt ceiling, as Washington scrambles over new fears that the government could default by as soon as June 1.
The request for talks arrived on the same day that the Treasury Department offered its jarring new projection of a truncated timeline, warning that a failure to act — in as few as about four weeks — could tip the fragile U.S. economy into another recession.
The debt ceiling — set at about $31 trillion — is the legal maximum the U.S. government can borrow to pay its bills. Since January, the Biden administration has adopted special budgetary maneuvers to safeguard the country’s credit, finance federal agencies, and buy time for lawmakers to raise or suspend the cap." (our emphasis)
Of course the MAGA radicals in the House would like nothing better than to crash the economy and blame it on President Biden for political gain, despite the public's view that the ceiling should be raised, and that it's Congress' responsibility to do it.
In the Malignant Loser's years in office, the debt ceiling was raised without demanding cuts in spending, making it clear that the debt ceiling becomes a weapon when a Democrat is in the White House, as the Post article notes:
"Previously, Republicans have raised the debt ceiling without issuing demands. Three times, they addressed the borrowing cap under President Donald Trump without including fiscal reforms. Each time, Democrats serving in the minority also supplied their votes in a bid to avert a crisis.
Yet the GOP under Biden has adopted a more aggressive posture, aiming to use the threat of a fiscal crisis as a political tool while blaming Democrats for a burgeoning debt. In reality, policies supported by both parties have contributed to an imbalance that could exceed $50 trillion over the next 10 years."
As part of their debt ceiling extortion, they've passed a draconian budget that cuts billions in veterans programs, environmental and renewable energy initiatives, student debt relief and other popular programs. They've played this game in years past, and inevitably they buckle at the 11th hour. Unfortunately, this House is more radical than ever before, and they're far more likely to use this to strike at the economy and try to blame the Biden Administration.
BONUS: The Malignant Loser once denounced using debt ceiling for leverage.
