When a devastating deadline collides with an unstoppable force, what occurs? When a coming credit catastrophe encounters GOP Sen. Mitch McConnell, America is about to discover firsthand.
Liberals are pushing ahead with the plan to exclude lifting the national debt ceiling from the $3.5 trillion party-line budget package; this comes despite the possibility of default on the country’s $28 trillion debt this fall. Instead, Democrats are banking on the Senate Minority Leader to deliver the GOP votes they’ll need to break the stalemate and avoid economic catastrophe.
McConnell Sands Strong
McConnell, on the other hand, refuses to budge. According to aides and colleagues, the Kentucky Republican is as committed as they come. Nothing will persuade McConnell to change his opinion. He declared at the Capitol on Monday that liberals do have the opportunity to extend the debt ceiling which would cover the irresponsible spending package.
Former President Donald Trump said Saturday that Republicans in Congress should use the upcoming debt ceiling vote as leverage to negotiate a better infrastructure package, calling the present bipartisan $1.2 trillion plan “a disgrace.” https://t.co/L2CGc95F98
— Newsmax (@newsmax) August 7, 2021
It’s a challenge for liberals: either approve an increase in debt along party lines or risk being blamed for the poisonous consequences of a credit default, while conservatives remain silent. Liberals, on the other hand, are wagering that Republicans will change their minds in a few days.
They’re also neglecting to explain how they can defeat GOP opposition and instead forecast that McConnell’s side will cave in. As a result, the faction’s leaders are playing a perilous game of fiscal chicken.
Senate Majority Leader Chuck Schumer does not require a single conservative vote, and GOP Sen. Thom Tillis believe he can proceed with that knowledge. According to Democrat officials, the party would probably combine raising the debt ceiling with passing a stopgap budget resolution to avoid a government shutdown at the end of next month.
The House is expected to take up and approve the package first, before sending it to the Senate, where liberals hope to gain enough Republican support to avert a fiscal calamity.
To hell with the debt ceiling, right? pic.twitter.com/StxVKLwigr
— Michael A. Gayed, CFA (@leadlagreport) August 10, 2021
This Isn’t the First Time
The last time Congress toyed with bankruptcy was a decade ago, resulting in a credit rating and causing stock markets to tremble. However, the legislatures haven’t come close to meeting a deadline that might result in enormous market losses and uncertainties, slowing down President Joe Biden’s economic strategy.
This year, it’s not just the usual culprits in the GOP who are speaking out against raising the debt ceiling. Republican Senator Susan Collins expressed deep doubts about lifting the borrowing limit in the face of Democrats’ multibillion-dollar spending proposals in an event. It doesn’t speak well for Biden’s party if the centrist Mainer refuses to agree to lift the borrowing ceiling.
Let Democrats lift debt-ceiling for the reconciliation bill. There's no reason Republicans should take a minority-stake ownership position in this radical bill. https://t.co/6qRDc67KBO
— David Harsanyi (@davidharsanyi) August 10, 2021
The September traffic jam is expected to contain more than federal financing that runs out at the end of the month, just as the Finance Department’s ability to use exceptional steps to protect the nation from default runs out.
A slew of other initiatives, such as an eviction ban that caused a huge problem for House leadership just last week, are set to expire this fall, putting members of Congress under a barrage of heat.