The media is doing its best to emulating a weaterman standing in the storm….
The US Government has reached the ‘techincal’ top borrowing limit….
It has the ability to stretch this till the fall….
It will…
Republicans will have take a hard look at the history of allowing a Government shutdown to make a point….
It generally doesn’t come out in their favor….
In the end?
The Debt Ceiling limit WILL be raised…..
Of course Congress has the right to ask questions…
But Congress (Republicans included) also passed the current budget already….
The United States hit its debt limit on Thursday, prompting the Treasury Department to begin using a series of accounting maneuvers to ensure the federal government can keep paying its bills.
In a letter to Congress, Treasury Secretary Janet L. Yellen said the government would begin using what is known as extraordinary measures to prevent the nation from breaching its statutory debt limit and asked lawmakers to raise or suspend the cap so that the government could continue meeting its financial obligations.
“The period of time that extraordinary measures may last is subject to considerable uncertainty, including the challenges of forecasting the payments and receipts of the U.S. government months into the future,” Ms. Yellen said. “I respectfully urge Congress to act promptly to protect the full faith and credit of the United States.”
The milestone of reaching the $31.4 trillion debt cap is a product of decades of tax cuts and increased government spending by both Republicans and Democrats. But at a moment of heightened partisanship and divided government, it is also a warning of the entrenched battles that are set to dominate Washington, and that could end in economic shock.
Newly empowered House Republicans have vowed that they will not raise the borrowing limit again unless President Biden agrees to steep cuts in federal spending. Mr. Biden has said he will not negotiate conditions for a debt-limit increase, arguing that lawmakers should lift the cap with no strings attached to cover spending that previous Congresses authorized.
Treasury officials estimate the measures that they began using on Thursday will enable the government to keep paying federal workers, Medicare providers, investors who hold U.S. debt and other recipients of federal money at least until early June.
But economists warn that the nation risks a financial crisis and other immediate economic pain if lawmakers do not raise the limit before the Treasury Department exhausts its ability to buy more time.
The episode has prompted fears in part because of the lessons both parties have taken from more than a decade of debt-limit fights. A bout of brinkmanship in 2011 between House Republicans and President Barack Obama nearly ended in the United States defaulting on its debt before Mr. Obama agreed to a set of caps on future spending increases in exchange for lifting the limit.
Most Democrats have solidified in their position that negotiations over the debt limit only enhance the risks of economic calamity by encouraging Republicans to use it as leverage. That is particularly true of Mr. Biden, who successfully stared down Republicans and won an increase in 2021 with no stipulations…