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Politics Trump urges McConnell to endanger the US economy so Democrats can't pass their spending plan

00:20  01 december  2021
00:20  01 december  2021 Source:   businessinsider.com

Schumer-McConnell dial down the debt ceiling drama

  Schumer-McConnell dial down the debt ceiling drama Senate Majority Leader Charles Schumer (D-N.Y.) and GOP Leader Mitch McConnell (Ky.) are dialing down the drama as they try to find an escape hatch from another high-stakes fight over the debt ceiling. Congress has until roughly Dec. 15 to raise the nation's borrowing limit, according to Treasury Secretary Janet Yellen, who has warned that the mid-December date is when the government will no longer be able to fully pay its bills. On theCongress has until roughly Dec. 15 to raise the nation's borrowing limit, according to Treasury Secretary Janet Yellen, who has warned that the mid-December date is when the government will no longer be able to fully pay its bills.

Sen. Mitch McConnell, R-Ky. (left), and former President Donald Trump (right). Bill Clark/CQ Roll Call via Getty Images © Bill Clark/CQ Roll Call via Getty Images Sen. Mitch McConnell, R-Ky. (left), and former President Donald Trump (right). Bill Clark/CQ Roll Call via Getty Images
  • Former Pres. Donald Trump urged Sen. McConnell on Tuesday to "use the debt ceiling" to block Biden's agenda.
  • Congress has until December 15 to raise the limit and keep the US from defaulting on its debt.
  • Using the ceiling as a political weapon risks unprecedented economic catastrophe.

Former President Donald Trump wants Senate Minority Leader Mitch McConnell to use the debt ceiling to "kill" the Biden administration's spending agenda. The only snag: it risks utter economic catastrophe.

NDAA, debt ceiling, government funding: Here's what's left for Congress to address in 2021

  NDAA, debt ceiling, government funding: Here's what's left for Congress to address in 2021 Both chambers of Congress will be working to try to avoid a government shut and default, as well approve a must-pass national security package.Both chambers of Congress will be working in overdrive to try to avoid a government shut and default, both of which would be catastrophic for the economy, which has already been grappling with the repercussions of the COVID-19 pandemic.

Lawmakers have until December 15 to either raise or suspend the limit on how much the government can borrow. The debt ceiling has loomed over Congress since early October when McConnell offered Democrats a two-month extension to the deadline. With the limit fast approaching, Democrats and the GOP are once again sparring over who will keep the US from defaulting on its debt.

Trump called on the minority leader in a Tuesday statement to hold his ground on the issue. Giving Democrats the two-month extension allowed the party to "get their act together" and pass their $1 trillion infrastructure bill, Trump said. McConnell should now leverage the debt ceiling to inflict pain on Democrats and endanger the passage of Biden's social spending package that includes childcare assistance, lower drug prices, and universal pre-K, the former president added.

Reckless tax and spending spree will cripple the economy and possibly the Democratic Party

  Reckless tax and spending spree will cripple the economy and possibly the Democratic Party Democrats are moving forward with a reckless tax and spending spree. They are proposing enacting the largest single spending and tax increase in U.S. history. Along with it, a massive increase in the size and scope of government. © Provided by Washington Examiner Senate Budget Committee Chairman Bernie Sanders called his budget plan "the most significant spending on government programs since the Great Depression." House Budget Committee Chairman John Yarmuth said they were going to pass "the biggest bill in the history of the country." After passing a $1.

"Old Crow Mitch McConnell ... must be fully prepared to use the DEBT CEILING in order to totally kill the Democrat's new Social Spending (Wasting!) Bill, which will change our Country forever," Trump said. "Use the Debt Ceiling, Mitch, show strength and courage."

Using the debt ceiling as a political weapon, however, could well endanger the still-recovering economy. If the ceiling isn't lifted ahead of the deadline, the government could default on its multitrillion-dollar debt pile. Payments to federal workers and service members would freeze, as would Social Security benefits. Borrowing costs would skyrocket as the world loses faith in the US dollar's worth.

In the words of Treasury Secretary Janet Yellen on Tuesday, failing to pay the government's bills "will eviscerate our current recovery." She said it was possible that the US may run out of cash shortly after Dec. 15 once the Treasury moves cash into the Highway Trust Fund — an assessment that shared by the Congressional Budget Office, the nonpartisan scorekeeper on Capitol Hill.

How long can Mitch McConnell ignore Donald Trump?

  How long can Mitch McConnell ignore Donald Trump? Mitch McConnell would like everyone in the Republican Party to forget all about Donald Trump -- and the last four years. © Olivier/Pool/Getty Images US President Donald Trump (L) talks to the press as Senate Majority Leader Mitch McConnell (R-KY) looks on after the Republican luncheon at the U.S. Capitol Building on January 9, 2019 in Washington, DC. "I do think we need to be thinking about the future and not the past," McConnell told CNN's Manu Raju last month when asked about candidates embracing Trump.

Republicans flirted with economic disaster earlier this year. The party's lawmakers had demanded Democrats raise the limit on their own through reconciliation. Democrats, however, maintain the effort should be bipartisan just as it has been the 79 times the ceiling was raised over the last six decades. Some Senate Democrats have expressed openness to reconciliation, but others oppose the complex process on the grounds that it would take too long.

McConnell expressed in October that the GOP wouldn't offer Democrats another extension in December, but his latest comments both parties are eyeing an escape hatch to avert a perilous showdown between both parties. The Kentucky Republican said Tuesday he and Senate Majority Leader Chuck Schumer are having "useful discussions" about raising the limit, and that the country "will not default."

The former president, then, might not get his way. That could spare the US economy a world of hurt.

Read the original article on Business Insider

Mitch McConnell Confident He Can Get 10 Republicans to Back Him, Others Aren't So Sure .
Some Republican senators have voiced their opposition to allowing Democrats to raise the debt ceiling.McConnell reached an agreement with Senate Majority Leader Chuck Schumer (D-NY) to let Democrats raise the debt limit with Republican votes through a one-time process.

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