https://sputnikglobe.com/20230128/why-biden-administration-is-in-panic-mode-over-forthcoming-debt-ceiling-battle-with-gop-1106791380.html
Why Biden Administration is in Panic Mode Over Forthcoming Debt Ceiling Battle With GOP
Why Biden Administration is in Panic Mode Over Forthcoming Debt Ceiling Battle With GOP
Sputnik International
Speaking to US journalists on January 28, Treasury Secretary Janet Yellen described a picture of forthcoming doom in case GOP-led House Republicans refuse to raise the debt ceiling without hesitation this summer.
2023-01-28T17:17+0000
2023-01-28T17:17+0000
2023-04-20T17:06+0000
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Speaking to US journalists on January 28, Treasury Secretary Janet Yellen described a picture of forthcoming doom in case GOP-led House Republicans refuse to raise the debt ceiling without hesitation this summer.The United States government reached its borrowing limit, also known as the "debt ceiling," on January 19. Yellen told House Republicans that the next hike would be needed by June. It's up to Congress to decide the amount the US can borrow. Last time, the debt ceiling was raised to $31.4 trillion by US lawmakers in December 2021. For comparison's sake, before the global financial crisis of 2008, the US national debt amounted to just $9 trillion.Over 40 House Dems have proposed a bill that would eliminate the debt ceiling altogether, thus allowing the US government to borrow without limits.However, regardless of apocalyptic scenarios depicted by the Biden administration, the Republicans are sharpening their spears for the upcoming debt ceiling fight, according to the US press. GOP lawmakers are now in control of the House and appear to be itching to take their sweet revenge on the Dems following the latter's spending spree and repeated weaponization of the reconciliation mechanism.House Speaker Kevin McCarthy has already signaled that he would insist on considerable spending cuts before green-lighting any expansion of the borrowing limits. For his part, Rep. Chip Roy of Texas proposed capping fiscal year 2024 spending levels at those of fiscal year 2022. Meanwhile, Rep. Andy Biggs of Arizona even went so far as to say that he wouldn't vote for raising the debt ceiling: he argued that the Dems have already had lots of money. "Democrats have carelessly spent our taxpayer money and devalued our currency. They’ve made their bed, so they must lie in it," he tweeted.In response, President Biden called GOP lawmakers "fiscally demented," while Democratic Senate Majority Leader Chuck Schumer accused his political opponents of "brinkmanship" and "hostage-taking."Meanwhile, there is more to the latest debt ceiling debate than meets the eye, according to the US press. American journalists are bemoaning the fact that growing divisions between the Biden administration and Congress are sending mixed signals to the Global South.While Yellen has been on her charm offensive in Africa, China’s Embassy in Zambia poked the Treasury secretary over the US' "catastrophic debt problem." Likewise, even the vague possibility of a US default on debt lessens the trust in Washington's financial might among African leaders, something that Yellen's latest trip to the continent was meant to strengthen.Furthermore, as the Biden administration has vowed to continue supporting the Kiev regime by sending weapons and various sorts of financial aid, it's unclear whether the White House will be capable of delivering on its generous promises.
https://sputnikglobe.com/20230125/us-mccarthy-calls-bidens-refusal-to-negotiate-state-debt-ceiling-irresponsible-1106676540.html
https://sputnikglobe.com/20230124/mcconnell-debt-ceiling-solution-measure-must-come-from-us-house---not-senate-1106667160.html
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us debt ceiling, what are gop conditions for raising debt ceiling, janet yellen warns of catastrophe, yellen's africa trip, republicans propose cuts to budget, president biden refused to negotiate with gop
us debt ceiling, what are gop conditions for raising debt ceiling, janet yellen warns of catastrophe, yellen's africa trip, republicans propose cuts to budget, president biden refused to negotiate with gop
Why Biden Administration is in Panic Mode Over Forthcoming Debt Ceiling Battle With GOP
17:17 GMT 28.01.2023 (Updated: 17:06 GMT 20.04.2023) US Treasury Secretary Janet Yellen is "nervous" about the probability of the US defaulting on its debt which could translate into nothing short of a "catastrophe" for the nation, as she told American reporters during her Africa trip.
Speaking to US journalists on January 28, Treasury Secretary Janet Yellen described a picture of forthcoming doom in case GOP-led House Republicans refuse to raise the debt ceiling without hesitation this summer.
"Of course, it makes me nervous," Yellen said. "It would be devastating. It's a catastrophe." According to the Treasury secretary, the US will face a "financial crisis" and "recession" in the event of a default.
The United States government reached its borrowing limit, also known as the "debt ceiling," on January 19. Yellen told House Republicans that the next hike would be needed by June.
It's up to Congress to decide the amount the US can borrow. Last time, the debt ceiling was raised to $31.4 trillion by US lawmakers in December 2021. For comparison's sake, before the global financial crisis of 2008, the US national debt amounted to just $9 trillion.
25 January 2023, 07:47 GMT
Over 40 House Dems have proposed a bill that would eliminate the debt ceiling altogether, thus allowing the US government to borrow without limits.
However, regardless of apocalyptic scenarios depicted by the Biden administration, the Republicans are sharpening their spears for the upcoming debt ceiling fight, according to the US press.
GOP lawmakers are now in control of the House and appear to be itching to take their sweet revenge on the Dems following the latter's spending spree and repeated weaponization of the reconciliation mechanism.
House Speaker Kevin McCarthy has already signaled that he would insist on considerable spending cuts before green-lighting any expansion of the borrowing limits. For his part, Rep. Chip Roy of Texas proposed capping fiscal year 2024 spending levels at those of fiscal year 2022. Meanwhile, Rep. Andy Biggs of Arizona even went so far as to say that he wouldn't vote for raising the debt ceiling: he argued that the Dems have already had lots of money. "Democrats have carelessly spent our taxpayer money and devalued our currency. They’ve made their bed, so they must lie in it," he tweeted.
24 January 2023, 21:41 GMT
In response,
President Biden called GOP lawmakers "fiscally demented," while Democratic Senate Majority Leader Chuck Schumer accused his political opponents of "brinkmanship" and "hostage-taking."
Meanwhile, there is more to the latest debt ceiling debate than meets the eye, according to the US press. American journalists are bemoaning the fact that growing divisions between the Biden administration and Congress are sending mixed signals to the Global South.
While Yellen has been on her charm offensive in Africa, China’s Embassy in Zambia poked the Treasury secretary over the US' "catastrophic debt problem." Likewise, even the vague possibility of a US default on debt lessens the trust in Washington's financial might among African leaders, something that Yellen's latest trip to the continent was meant to strengthen.
Furthermore, as the Biden administration has vowed to continue supporting the Kiev regime
by sending weapons and various sorts of financial aid, it's unclear whether the White House will be capable of delivering on its generous promises.
