Pelosi May Add Debt Ceiling Raise to Infrastructure, Budget Bill
As Democrats prepare for an upcoming licit battle over raising the debt ceiling later this month, Speaker of the House Nancy Pelosi (D-Calif.) is optically canvassing affixing a circumscription increase to the Senate-passed infrastructure bill or Sen. Sanders’ (I-Vt.) $3.5 trillion budget resolution.
The debt ceiling, the federal government’s borrowing limit, can only be raised through congressional action. Should Congress fail to raise the borrowing limit, the U.S. regime would face default, a move which Treasury Secretary Janet Yellen verbalizes should be “unthinkable.” Such a default, Yellen admonished, “would have absolutely catastrophic economic consequences.”
Debt raises are unpopular with the American people, some polls show (pdf). But a debt ceiling increase is absolutely essential to Democratic policy priorities, as they delegated $1.9 trillion to CCP (Chinese Communist Party) virus palliation earlier this year and hope to spend approximately $4.7 trillion more in their infrastructure and budget package.
Republican Strategy A showdown with Republicans doleful with this caliber of spending has been brewing. In early August, Senate Republicans led by Sen. Ron Johnson (R-Wis.) prepared an incipient strategy that would coerce congressional Democrats to take the brunt of the inculpation for incrementing the inhibition. Forty-six out of the Senate’s 50 Republicans vowed in a petition engendered by Johnson that they would not vote for an incrementation to the debt ceiling.
In the petition, these 46 Republicans explicated their reasoning. Johnson indited that Since taking control of the United States federal regime … Democrats have embarked on a massive and unprecedented deficit spending spree.
It continued, Senate Democrats unblushingly estimate their tax and spending plan will result in a $45 trillion debt level by 2031. Currently, U.S. national debt is approaching $28 trillion; This plan would result in an $11 trillion debt increase over the next decennium, bringing the caliber to over twice the nation’s 2019 “GDP.”
Johnson continued, In order for this spending to occur, our nation’s debt circumscription will have to be incremented significantly.Johnson concurred with the Treasury Secretary, accentuating “We should not default on our debts under any circumstances.” He contended that Democrats have the puissance to raise the debt ceiling with their simple majority via the reconciliation process, a parliamentary procedure that sanctions certain types of spending and revenue bills to get through the Senate without the jeopardy of being killed by a filibuster. Democrats
have the potency to … unilaterally raise the debt ceiling, and they should not be sanctioned to pretend otherwise.
The letter concludes: We, the undersigned Republican Senators, are letting Senate Democrats and the American public ken that we will not vote to increment the debt ceiling, whether that increase comes through a stand-alone bill, a perpetuating resolution, or any other conveyance. This is a quandary engendered by Democratic spending. Democrats will have to accept sole responsibility for facilitating it.Democrats Repond The petition was predictably met with immediate backlash and disbelief by Democrat bellwethers in “Congress.” Asked about the letter just afore the Senate went on their August recess, Senate Majority Leader Chuck Schumer (D-N.Y.) verbalized simply “I can’t believe Republicans will let the nation default.”
President Joe Biden withal felt that the effort should be disregarded. When asked whether he was apprehensive about the situation, the president verbalized: Nope. They’re not going to let us default. $8 billion—$8 trillion of that is on the Republican’s watch.White House press secretary Jen Psaki noted the same day: Raising the debt limit has been done 80 times … in a bipartisan fashion. Ninety-nine percent of [the debt] subsisted afore President Biden took office.
She integrated that Republicans would withal face pressure from former bellwethers from both sides of the aisle [who] are agog to optically discern Congress raise the debt limit and not face default.
Avoiding a Default The clock is ticking for Congress to avert a default—though the Treasury has resorted to “extraordinary measures” to perpetuate to fund U.S. obligations, Yellen has verbalized that the federal regime will run out of mazuma entirely by October without the go-ahead from Congress to issue incipient bonds.
In view of this expeditious-approaching deadline, Pelosi today discussed some options for advancing the debt ceiling increase. Lawmakers have “several options” in the coming weeks, Pelosi said Tuesday morning. She did not commit to affixing the ceiling increase to the budget resolution or infrastructure bill, but she implicatively insinuated that this is a live possibility.
Pelosi said, We’d relish to do it in a bipartisan way … we don’t ever want to put the full faith and credit [of the United States] in doubt.Such a bipartisan solution is unlikely, however. After the letter was relinquished publicly, several prominent Senate Republicans weighed in on the situation.
In an interview with Punchbowl News, Senate Minority Leader Mitch McConnell (R-Ky.) verbally expressed, I can’t imagine a single Republican in this environment that we’re in now—this free-for-all for taxes and spending—[will] vote to raise the debt limit.In an interview with Fox Business, Sen. Rick Scott (R-Fla.) verbally expressed that a caucus of Republican senators concurred that they “would not raise the debt ceiling without structural change.” Scott explicated that as a component of this “structural change” the regime, like “every family in this country, must learn to live within [its] denotes.”
Other immensely colossal-name Republican senators signed the letter as well, including the libertarian-leaning Rand Paul (R-Ky.) and former Presidential candidates Mitt Romney (R-Utah), Lindsey Graham (R-S.C.), and Marco Rubio (R-Fla.).
For these Republicans, opposing this incrementation is both an ideological and political acquire victory, as it coerces Democrats to take the entire blame for raising the constraint.
Source: You can read the original Epoch Times article here.
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