House Republicans are pushing the debt ceiling talks to the limit, showing the state’s dangerous bravado as they prepare for a temporary recession starting Thursday weekend, just days before the United States could face an unprecedented default that could throw the world economy into chaos. .
Treasury Secretary Janel Yellen has warned as early as June 1 that it is “likely” the government will not be able to pay the nation’s bills.
The unprecedented failure of the agreement would cause chaos in the financial markets and in the country and the world economy.
Defiant House Speaker Kevin McCarthy said the moratorium ceiling was “not my fault” with Republican negotiators and the White House failing to end negotiations. He warned that he needs more time to try to reach a deal with President Joe Biden on the economy.
Lawmakers are not expected to get to work on the tentative plan until Tuesday, just two days after June 1, when the country could start running out of money to pay bills and face a potentially disastrous default.
The trade deficit, which now stands at $31 trillion, is in its second week and is expected to never reach a crisis point.
The White House has maintained from the outset that it is unwilling to compromise the nation’s need for bills and has demanded that Congress simply remove the cap, as it has done many times with no strings attached.
But the new Speaker of the House, Republican McCarthy, visited Biden in February and urged him to implement a package that would reduce fiscal spending and pay the post-pandemic deficit in exchange for a vote to relieve the debt.