Capitol Hill is a buzz this morning as U.S. lawmakers continue to argue amongst each other as to the best resolution for the mounting debt crisis the nation currently faces.
Despite all their differences, when it comes to the topic the nation’s debt crisis, leaders of both parties have one thing in common… They continue to blame each other’s fiscal irresponsibility as the cause.
Today, let’s take a look at the potential threats our nation’s economy currently faces, what the cause could be and what solutions are being discussed to keep the United States afloat through a staggering back and forth communication between Senate Minority Leader Mitch McConnell and the current administration!
The Issues…
When it comes to the issue of the nation’s debt, Senate Minority Leader Mitch McConnell continues to believe the answer is fairly straight forward… If Democrat party members wish to pass a $3.5 trillion spending bill through reconciliation, they should also use that budget tool to raise the debt ceiling.
President Biden, however, believes that Senate Republicans are holding the issues hostage, claiming that Republicans are to blame for their share of the debt currently in dispute as they are guilty of running up massive bills during their time controlling Congress under the previous administration.
In a public statement made this past Tuesday discussing this issue at length, White House Press Secretary Jen Psaki had this to say:
“Why let McConnell off the hook or Republicans off the hook? I mean, this is their debt that they chalked up themselves. This is a period of time where we could easily solve this in the next two days and easily do that through allowing Democrats to be the adult int eh room, despite the fact that Republicans spent like drunken sailors over the last four years before President Biden took office. … What Senator McConnell is refusing to do is to pay the debts of what were rung up under his leadership when he was in the Senate – still continues to be, of course – and when Trump was president. The debt limit is about paying for bills we have already spent. It is not about initiatives that we’re talking about and debating now.”
Discussing the topic, President Biden too stepped in to share his thoughts, saying…
“There’s not many options if they’re going to be that irresponsible,” referring to Republican leaders and their playing – per President Biden — “Russian roulette” with the issues.
“It has nothing to do with my plan for infrastructure or building back better… Zero. Zero. Both of which, I might add, are paid for.”
Continuing on his rant, President Biden added that raising the debt ceiling is usually a bipartisan exercise but, for whatever reason, Republicans are currently making it an issue.
“If we’re going to make good on what’s already been approved by previous Congresses and previous presidents and parties, we have to pay for it: Social Security benefits the American people were promised, salaries for servicemen and women, benefits for veterans… We’re going to have to raise the debt limit if we’re going to meet those obligations.”
McConnell immediately responded to the President’s comments by saying,
“As you and I know from shared Senate experience, this is not unusual. The debt limit is often a partisan vote during times of unified government. In 2003, 2004 and 2006, Mr. President, you joined Senate Democrats in opposing debt limit increases and made Republicans do it ourselves. You explained on the Senate floor that your NO votes did not mean you wanted the majority to let the country default, but rather that the President’s party had to take responsibility for a policy agenda which you opposed. Your view then is our view now.”
“Bipartisanship is not a light switch that Speaker Pelosi and Leader Schumer may flip on to borrow money and flip off to spend it. Republicans’ position is simple. We have no list of demands. For two and a half months, we have simply warned that since your party wishes to govern alone, it must handle the debt limit alone as well.”
The Wrap Up…
As the nation’s leaders continue to argue back and forth on the appropriateness of raising the nation’s debt limit, many can’t help but wonder if a bank would do the same to a customer who continued to make purchases on their account that they could not pay for.
In that instance, wouldn’t the limit be strictly followed? Forcing the debtor to pay their bills? Why is this rule different for the country?
… And to President Biden’s point of paying for things that the nation has been promised, the solution seems to be that lawmakers should stop promising things they have no way of paying for without dragging the nation further down a hole of debt.
Learn More Here…
If you’re interested in learning how – unlike the United States — you could take steps to work off your debt, then we encourage you to join DTI founder and 40-year market veteran Tom Busby today as he sits down with you to discuss today’s markets and new investment strategies that are designed to help you make the most out of your money!
P.S. – Don’t forget to join market pro and longtime DTI friend Jack Carter for his latest web session where he’s set to reveal his #1 income strategy to collect income with over 85% accuracy…in any market condition!