Will the U.S. Default After Hitting Debt Ceiling? | Eastern North Carolina Now

    Publisher's Note: This post appears here courtesy of The James G. Martin Center. The author of this post is Brittany Raymer.

    The United States has instituted "extraordinary measures" after hitting the debt ceiling, which raises fears that the country could default on its debts. If that happens, the U.S. will enter a turbulent time economically and deepen any impending economic downturn.

    America remains one of the largest and most powerful countries in the world, both from a military standpoint and economically. But will that last if the government defaults on its debts and obligations to our creditors?

    Today, January 19, the country has officially breached its debt ceiling of $31.381 trillion, and Treasury Secretary Janet Yellen is now instituting "extraordinary measures" to keep the government from defaulting on its debt. In a letter to newly instituted Speaker of the House Kevin McCarthy, those actions include suspending payments into the Civil Service Retirement and Disability Fund, for those who are not currently receiving payments, and also the Postal Service Retiree Health Benefits Fund. These measures can keep America solvent until early June.

    In her letter, she also pleaded with Congress to act.

    "The period of time that extraordinary measures may last is subject to considerable uncertainty," Yellen warned. "I respectfully urge Congress to act promptly to protect the full faith and credit of the United States."

    The economic catastrophe that could happen if the country fails to pay its creditors, or if even there is a hint that it can't live up to its obligations, is difficult to underestimate-but it also is a sign that the governments reckless spending has its limits.

    A currently split Congress makes any headway on this issue enormously difficult.

    After winning a narrow midterm victory, Republicans now control the House, though not the White House or the Senate. Hardline members of the GOP party want any discussion about the debt ceiling tied to spending cuts, but President Joe Biden doesn't seem willing to budget on his aggressive spending plans. As reportedby CNN, the president "will not offer any concessions or negotiate on raising the debt ceiling."

    This raises the possibility that the government will stall on raising the debt ceiling and shutdown all together, in order to try and get opposing sides to meet somewhere in the middle. However, government shutdowns usually backfire on whichever party inspired the move, and is usually especially fruitless for Republicans.

    Surprisingly, analysis from the left-leaning New York Times shows that both parties are equally at fault for this latest crisis.

    Authors Jim Tankersley and Alan Rappeport wrote: "In reality, both parties have approved policies that fueled the growth in government borrowing. Republicans repeatedly passed tax cuts when they controlled the White House over the past 20 years. Democrats have expanded spending programs that have often not been fully offset by tax increases. Both parties have voted for large economic aid packages to help people and businesses endure the 2008 financial crisis and the 2020 pandemic recession."

    Given the unstable economic time, especially with massive layoffs at Amazon and Microsoft just this week, the possibility of defaulting on debt leaves the country at the brink of economic disaster.

    Congress must act, and both sides need to come to the table-but will the results help Americans or be another Band-Aid until the next crisis. Recent history dictates, it will be the latter.
Go Back


Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )




Is Virginia’s Push to Eliminate Gas Cars a Sign of North Carolina’s Future? John Locke Foundation Guest Editorial, Editorials, Op-Ed & Politics Biden Admin Shatters All-Time Record For Number Of Illegal Alien Encounters On Southern Border


HbAD0

Latest Op-Ed & Politics

while globalitst Netherlands and EU push eating bugs and worms
President Joe Biden made a series of cringeworthy jokes at the expense of Irish people at a St. Patrick’s Day event Friday.
The 4th U.S. Circuit Court of Appeals has upheld a jury's award of tens of millions of dollars to two N.C. brothers who spent more than 30 years in prison on false charges. But the size of the overall award will drop by at least $46 billion.
Former President Donald Trump will surrender to law enforcement officials if he is indicted by a Manhattan grand jury in connection with a $130,000 hush money payment he allegedly made to porn actress Stormy Daniels, according to Trump’s attorney.
The two Nigerian brothers responsible for helping disgraced actor Jussie Smollett carry out his fake hate crime attack in 2019 apologized for the stunt during an interview this week.
Manhattan District Attorney Alvin Bragg has announced a brilliant new plan to get Trump elected President in 2024.
Former President Donald Trump posted to Facebook on Friday for the first time since getting booted from the platform in January 2021.
RALEIGH: Today, Governor Roy Cooper issued the following statement following the House’s passage of HB 76:
Extraterrestrial beings may be hiding on distant planets which have a “terminator zone,” a habitable band at the transition between the non-rotating planets’ warm, day side and the cold, dark night side, researchers conjecture.

HbAD1

As tensions continue to rise amid negotiations for a new contract, Los Angeles Unified School District teachers threatened to return to their classrooms and resume teaching students if their demands are not met.
Leaders in the North Carolina House and Senate announced an agreement on Wednesday, March 8, on a budget amount for the 2023-2024 fiscal year.
First Republic Bank’s top executives reportedly offloaded stock in the bank worth millions of dollars in the months before the bank nearly crashed.
A resurfaced clip of transgender federal health official Dr. Rachel Levine saying an adult transition gave Levine the chance to be a father is circulating on social media amid Levine’s recent, full-throated advocacy for sex changes for minors.
The world breathed a collective sigh of relief today as Chinese President Xi Jinping announced a historic peace agreement in the Russian-Ukrainian war in which Russia will stay in Ukraine permanently and China will also invade Taiwan.

HbAD2

 
Back to Top