Once again, we are being told that there is a danger that the US may default if Congress does not raise the limit on the debt ceiling that allows the Treasury to borrow money to meet its obligations. The debt ceiling was formally reached last week but the Treasury is shifting money around in order to cover the shortfall. That room for financial maneuverings runs out around June.
The country has been through this before, usually when a Democrat is president and the House or the Senate is controlled by Republicans who like to use this issue to create difficulties for the president. When Trump was president, the ceiling was raised with little fuss. Of course, Trump is now urging his followers to use the debt ceiling as hostage.
On Monday, Trump, whose influence over the party was shaken somewhat by poor midterm election results for his endorsed candidates but who remains the frontrunner for the 2024 Republican nomination for president, called on House Republicans to leverage power “by simply playing tough in the upcoming debt ceiling negotiations”.
Posting on the social media network he set up, Truth Social, Trump pressed all wings of the Republican party, including those rebels who initially voted against McCarthy, to join the negotiations: “It will be a beautiful and joyous thing for the people of our country to watch.”
The debt ceiling issue is one that seems made to be exploited by grandstanding politicians. To understand it, one must realize that what is called the ‘power of the purse’ is given to the House of Representatives. What that means is that all spending bills must originate in the House. It then goes to the Senate that can make changes which then have to be reconciled with the House and the reconciled bill is then sent to the president for their signature.
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