The United States congress has saddled itself with an unworkable additional, self-inflicted adversity: the U.S. federal "debt ceiling".
The original idea was to employ this powerful tool as a weapon to restrain run-away congressional spending. And that as a means to restrain the U.S.' astronomical federal debt. It's not working.
The debt ceiling has never worked.
Instead it provides congress a serial crisis reminiscent of Bill Murray's Groundhog Day.
This repeating crisis is akin to institutionalists having to play chicken with Republican iconoclasts.
Defaulting on the U.S. federal debt for the first time would result in substantial repercussions for Earth's global economies.
Apart from that the debt ceiling doesn't address the budget directly. It only threatens the U.S.' ability to pay the bills congress has already approved.
Key Points
Which side will blink?
Will Republicans allow the U.S. to default?
Will notable budget restraining legislation be passed into law in 2023?
The original idea was to employ this powerful tool as a weapon to restrain run-away congressional spending. And that as a means to restrain the U.S.' astronomical federal debt. It's not working.
The debt ceiling has never worked.
Instead it provides congress a serial crisis reminiscent of Bill Murray's Groundhog Day.
This repeating crisis is akin to institutionalists having to play chicken with Republican iconoclasts.
Defaulting on the U.S. federal debt for the first time would result in substantial repercussions for Earth's global economies.
Apart from that the debt ceiling doesn't address the budget directly. It only threatens the U.S.' ability to pay the bills congress has already approved.
Biden and McCarthy clash ahead of White House debt ceiling meeting
Published Wed, Feb 1 2023 12:09 PMKey Points
- President Joe Biden and House Speaker Kevin McCarthy will meet Wednesday afternoon to discuss the looming U.S. debt ceiling deadline.
- The meeting is a key test of whether the Democratic president and the Republican House speaker can build a working relationship.
- But while McCarthy is preparing for a negotiation, the White House is battening down the hatches for a fight.
- Treasury Secretary Janet Yellen has estimated Congress may need to suspend or increase the debt limit before early June to avoid a first-ever default on U.S. debt.
Which side will blink?
Will Republicans allow the U.S. to default?
Will notable budget restraining legislation be passed into law in 2023?