CNN
–
Unless Speaker Kevin McCarthy can navigate, Debt Trap He is President Joe Biden Instead, it threatens to catch his House Republican.
The California Republican Party headed to Wall Street on Monday to issue a new warning to Wall Street that said the House Republican majority would refuse to raise the cap on government borrowing unless Biden agreed to spend the cuts, which would effectively neutralize his family agenda and neutralize his White House legacy.
But McCarthy also assured traders that he would never let the U.S. government default on its obligations – a potential disaster that could stop Social Security payments, trigger recession and cut work in a fall, as debt ceilings were not raised.
This is a risk for Americans.
Most countries do not need legislatures to raise the government’s lending threshold. But the quirky situation in the United States makes the once-day duty an opportunity for political mischief in an era of polarization. Because the government spends more than income, it must borrow money to repay its debts and pay for expenses that Congress has already authorized. Earn more credits and have been having excellent credit ratings since the U.S. paid its bills, despite threats of previous downgrades.
At least, so far, that’s how it works.
McCarthy begged his meeting at a closed-door meeting Tuesday to lag behind a bill that would raise the debt limit for one year but would require a series of spending offers from Biden. He set the measure as the initial way to force the president to participate in the negotiations. But the bill is purely tactical because it doesn’t have a chance to pass the Democratic-led Senate.
But to show the difficulty of speakers pulling this wisdom down, there are signs of what opinions should be in the packaging among Republican members.
Rep. Scott Perry, chairman of the Hardline House Freedom caucus, was frustrated by the lack of particularity of the program and hope for a steeper cut.
“I don’t know what’s in the packaging. That’s the problem,” Perry told reporters. So far, some members seem reluctant to commit it. “I open the door to it, but I’m still ‘no’ vote,” Conservative Rep. Tim Burchett told CNN’s Manu Raju.
It is not uncommon for various factions in the Congressional majority to discuss details before agreeing to the final plan. McCarthy ally House Financial Services Chairman Patrick McHenry is confident that the plan will pass the House. “The question is, what will the White House do once we pass this package? We clearly say there is no clean debt ceiling that can pass through the house,” he added. “So, we will provide the first opening here. And, we will see if the president is willing to negotiate like a previous president.”
However, McHenry’s comment reflects a big flaw in the Republican strategy, as it relies on McCarthy’s belief that Biden has no choice but to participate. The White House insists that houses should do their jobs and passes a simple bill that raises only the borrowing limit
In fact, McCarthy has put a harsh test of his leadership because there is no guarantee that he can pass measures in the house where he can only lose four votes, and the fragile Republicans show little sign of agreeing to cut what plans and how many plans to reach consensus. Even if the measure does squeeze into the house in the next few weeks, it could be an idealized Republican product that Biden and the Democratic Senate will never bite. It is almost certain that any subsequent package will certainly have offers that could split its Republican support.
Still, the spokesman is usually optimistic that he predicted on Monday that he still has votes to pass his initial bill.
“I think we have 218 people to raise the debt ceiling,” McCarthy told CNN. “We had a lot of consensus in the meeting. We’re going to get together and work through it.”
However, his assurance may not be reassuring, as he predicts that he has the right to vote to win the speech in January. Irony process That led him to make a huge concession to the most radical members of his party and demanded 15 votes before he could win the dream job.
But with debt ceilings, it will be American livelihoods and global economy, not McCarthy’s direct political ambitions.
Republicans have yet to reach a consensus on their demands
So far, Republicans seem to be in trouble when negotiating with themselves, not to mention Biden. South Dakota Republican Rep. Dusty Johnson, who is helping to shape the Republican stance, said there are challenges despite the party’s hopes for the initial bill next week.
“I think the hardest part is, of course, that we all want to see unlimited conservative policy victory,” Johnson told CNN’s Manu Raju. “The reality is that in negotiations, you never get everything you want. So, I think the biggest question we have right now is, how do we squeeze thousands of desires for a lot of manageable and credible inquiries?”
Another complexity is that some members of the Republican meeting said they would never vote to pass in principle to raise the debt ceiling. In a strong Republican majority, this persistence can be ignored. In McCarthy’s narrow majority – gaining Republican expectations after the 2022 midterm election, they have real leverage. In the case of Republican defection, Democrats have little incentive to help McCarthy because they probably have to vote for the huge cuts Biden opposed in any final Republican bill. The spokesman, after agreeing to a rule, could risk using democratic voting anyway because he fought to win the job, allowing any member to vote on the recall.
The upcoming debt cap showdown could be a decision moment during the two-year period of uneasy cohabitation between the Democratic president and the Republican speaker. Neither Biden nor McCarthy could afford the loss, and the result would shape their legacy.
There is nothing wrong with Republicans seeking to capitalize on the leverage they have won in the Democratic elections to promote their political goal of reducing public spending. There are some Republican lawmakers who are sincerely concerned about debt and deficits, even if their parties run the government. Many economists worry about the always-infuriating Treasury bonds, which has collapsed by $31 trillion. Biden’s huge spending on co-relief packages, infrastructure, climate mitigation measures and health care plans has sparked debate on whether he can aggravate the inflation crisis.
But when jobs, pension plans linked to the market and the economic well-being of millions are at risk, did Republicans choose the right hills to engage in this battle? The absolutist nature of McCarthy’s position has hardly noticed the delicate balance of power. Democrats control the White House and the Senate, so when handed over to Republicans, the House, although few, voters may have been seeking compromise rather than confrontation.
Republicans also face hypocritical claims, as they undoubtedly raise debt restrictions when Donald Trump seldom fears a splash of spending. The 45th commander also said on his White House-era videotape that he couldn’t believe anyone would use the debt ceiling as a “negotiation wedge.” When the Democrats took office, Republicans were notoriously transformed into fiscal eagles, but when there was one in the Oval Office, it was often seen in another way.
To gain the upper hand in this battle, McCarthy must somehow change the political dynamics, as any default and economic tensions can be stuck in the country’s fiscal cliff, which may begin to develop.
He tried to do so on Monday, insisting that the biggest threat to the U.S. economy is not default, but increased national debt.
“There is no exaggeration, U.S. debt is a ticking time bomb that will detonate unless we take serious responsible actions. But how did President Biden react to this issue? He did nothing. So, I think, I think the rest of the United States is irresponsible,” he said.
Previous fiscal showdowns between Republican-controlled Congress and Democratic presidents often rebounded inadequately. For example, Presidents Bill Clinton and Barack Obama gained political traction by placing their enemies on the House of Representatives for economic arson.
McCarthy needs to turn the equation around, which is why he tries to portray Biden as a concession to refuse to negotiate a hike in debt ceiling. The two have not met for the past 75 days, and the White House has been insisting that the talks are beyond the budget position – the House of Representatives that Republicans have not yet produced, rather than taking full faith and credibility online from the U.S. government and using the reputation of the U.S. as a financial haven.
So McCarthy is a combination. Congress, not the president, has the power to raise government borrowing restrictions. However, a spokesman asked Biden to donate his store to perform his duties, which only McCarthy and his lawmakers could do. No one will benefit from a breach of contract – especially the president may not be re-election. But if McCarthy triggers an economic crash, it’s hard to see how McCarthy stands out from this puzzle.
The White House twisted that particular knife on Monday.
“There is a responsible solution to debt restrictions: quick resolution without fringement or hostage hijacking – Republicans conducted three times in the previous administration, while Presidents Trump and Reagan raised it during their tenure,” spokesman Andrew Bates said.
So far, Senate Republicans have tried to avoid chaos. But Republican leaders in the Senate Mickey McConnell On Monday, when he returned to the Capitol after recovery after the fall, he at least provided some moral support to his colleagues in the House.
“President Biden did not put his finger in his ears and refused to listen, talk or negotiate. The American people knew that. The White House needed to stop wasting time and start negotiating with the spokesperson of the house.” McConnell said, although in particular, it was not volunteered.
McCarthy’s speech on Monday only gave the impression that after months of moisture, the destructive political crisis on debt ceilings was moving towards a boil.
As New York Senate Democratic Majority Leader Chuck Schumer said Monday: “He has been heading to Wall Street and no longer gives us more details, no more facts, no new information, and I’ll be outspoken and if spokesman McCarthy continues in this direction, we’ll go to default.”
