On Wednesday, President Trump made quite a startling suggestion regarding the debt ceiling and the possibility of the United States defaulting on its debt. Trump called upon Republican lawmakers to let the United States default on its debt if Democrats do not agree to make substantial spending cuts. during a CNN town hall.
“I say to the Republicans out there — congressmen, senators — if they don’t give you massive cuts, you’re going to have to do a default,” said Trump, who is again running for president. “And I don’t believe they’re going to do a default because I think the Democrats will absolutely cave, will absolutely cave because you don’t want to have that happen. But it’s better than what we’re doing right now because we’re spending money like drunken sailors.”
When pushed by CNN anchor Kaitlan Collins to clarify his remarks, Trump said: “Well, you might as well do it now, because you’ll do it later. Because we have to save this country. Our country is dying. Our country is being destroyed by stupid people, by very stupid people.”
Trump is widely considered the frontrunner for the 2024 Republican presidential nomination, and his comments regarding a potential debt default could be a means of gaining political leverage against Joe Biden in a potential rematch. Biden declared that he will not negotiate over raising the debt limit but is willing to discuss spending reduction in another context.
The Treasury Department anticipates running out of money for bills by June 1st unless Congress takes action to raise the debt ceiling. Such an event would have devastating effects for markets and employment across the nation.
This Friday, leaders from both sides of Congress including House Speaker Kevin McCarthy will convene in order to find a solution before an economic meltdown ensues. As debated continue over whether or not there should be corresponding spending cuts with an increase in borrowing power, Americans anxiously await their decision.
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