Tuesday, May 30, 2023

Elon Musk opposes raising the US debt ceiling

US debt crisis

debt crisis in usa It is gathering opinion from all sides as to what they should do. He CEO of TeslaElon Muskhas told opposes raising the US debt ceiling why Supports those who point out that its limit should not be increased According to Luke Olinga N The Street.

Las Negotiations between the White House and the Republican-led House Regarding increasing the loan limit currently deadlocked,

Are American Politicians Playing Chicken?

This is the question investors and financial markets around the world have been asking for several days now.

Many economists have already warned that if the US fails to compromise, default could have significant consequences for the US economy and destabilize the rest of the worldAt a time when inflation is constraining growth.

He Democratic President Joe Biden and Speaker of the House Kevin McCarthy (R-Calif.) He stood by his side during a May 9 meeting on the US federal debt as a default looms.

According to McCarthy, Nothing changed after an hour-long conversation with Biden and three other lawmakers. But he told that the same hero they will meet again on fridayWhich was confirmed by Biden.

the President of the United States promised that he would “Do Everything in Your Power to Avoid” A default by the world’s largest economy. Violation “This is not an option”, commented.

Biden and the Republican Party: Debt Limit Deal or No Deal?

if the impasse continues President also considered it possible Cancel travel to Japan, Papua New Guinea and Australia in 10 daysaimed at Strengthening American alliances in the Asia-Pacific region.

He Senator Chuck Schumer (D-New York), for his part, McCarthy accused of holding the debt ceiling hostage Because it conditions a vote in favor of increasing the debt ceiling to make up for the massive budget cuts.

This legislative action specific to the US includes Increase in the maximum amount of authorized public debt, This is necessary to prevent the world’s leading power from finding itself, perhaps by June 1 or in any case this summer, unable to pay its bills.

The White House insists on increase credit limitjust a formality for a long time must be voted without conditions or negotiation, loss conservative they ask that the debt issue be linked to a efforts to cut public spendingwhich they consider to be out of control.

Biden has in the short term DiscardedDue to legal complications, a brute forcewhich will cause Invoke the 14th Amendment to the US Constitution to issue debt.

This political impasse is not new: Republicans and Democrats engaged in similar fractiousness during Barack Obama’s presidency, But it is already causing jitters in the markets.

Biden needs to end the threat of default persuade some Republican senatorsassume that no majority in congress, Above all, he needs to find common ground with McCarthy.

Democratic President and Republican Leader Betray Big: America’s credibility as a debt issuer and also its political credibility.

Biden80 years, seek re-election and still he’s fighting for it Increase your low popularity rating, McCarthy, The president must be elected by a narrow majority after a number of votes strengthen your position,

Elon Musk opposes raising the debt ceiling

He debt ceiling currently set to approx 31 trillion dollars, the sum of all the world’s sovereign debt in absolute terms. this amount arrived mid januaryBut so far the federal government has handled the situation accounting maneuver.

If the stagnation continues, then for the first time Holders of US Treasuries, considered the safest financial asset, may not get their investment back,

While most CEOs are urging Republicans and the White House to compromise or compromiseTesla CEO Elon Muskhave expressed their opinion in this regard and have adopted a hard on the issuesupport those who say so Loan limit should not be increased,

it all started with a twitter thread in which A user tweeted a poll that found 54% of Americans oppose raising the debt ceiling of the federal government.

“Polling: 54% of Americans oppose raising federal debt limit; opposition strongest among those without college degree,” Tally posted May 10 in all caps.

Kasturi immediately drew attention to this survey. “they’re right”,

His position has prompted many users to point out that If the loan limit is not increased, the negative consequences for NASA, among others, will be substantial.A federal agency and a major player in the aerospace industry.

NASA is a big customer of SpaceXThe billionaire’s rocket and satellite company, which vowed to conquer Mars with one of the largest and most powerful rockets ever built. If NASA sees its budget getting reducedThis can cause serious harm to your service providers and suppliers, including: SpaceX.

“However, what would happen if the debt ceiling was not raised for NASA?” one user tweeted the king of techno, as Musk is known at Tesla.

Musk, to those who oppose raising the debt ceiling, may sound like a radical, but his position is not surprising, The capricious businessman has spent several months The alarm is sounding on the level of public debt, He has urged Democrats to cut spending.

‘Repaying the loan will not be easy’

“Repaying the loan will not be easy”, Musk warned on May 9. “As countries’ debt grows, interest eats up a large portion of the budget, until there is little room left for anything else. TANSTAAFL”

TANSTAAFL stands for “There’s No Such Thing as a Free Lunch.”

In other words, raising the loan limit would mean higher taxes for all because, according to Musk, it will The only lever the government could use to repay the debt,

“Even if you tax every billionaire in America 100%, it barely makes a dent in the national debt. In the end, the government will be forced to tax everyone to pay off the debt,” The billionaire couple added in January.

Musk said that The actual debt data of $31 trillion “does not include unfunded liabilities, which are *much* higher.”

Tesla It closed Thursday in the green at $173.24, covering a little more than half of the bearish gap, and the 70-period moving average remained above the previous candles. Meanwhile, EI indicators are mixed.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com/
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