The United States has a few simple-minded confused Republican leaders who are putting the “Full Faith and Credit of the U.S. government at risk for no good reason. There is no plausible reason for Republicans not to approve a CLEAN debt ceiling increase period. They claim to be Patriots; however, if Congressional Republicans genuinely have love, devotion, and a sense of attachment to the Nation, they will raise the debt ceiling without obstructions as they have done many times before.
If the government hits the debt ceiling and exhausts all available extraordinary measures, it is no longer allowed to issue debt and will run out of cash soon after. At that point, given annual deficits, incoming receipts would be insufficient to pay millions of daily obligations as they come due. Consequently, the federal government will have to temporarily default on many obligations, from Social Security payments and salaries for federal civilian employees and the military to veterans’ benefits and utility bills, among others.
Let’s be clear, a default or even the perceived threat of a default will have profound negative economic implications on the U.S. global financial status. An actual default will inhibit economic growth, weaken fiscal flexibility, and increase the cost responsibility on future generations. An actual default will also disturb global financial markets and create chaos since domestic and international markets depend on the qualified economic and political stability of U.S. debt instruments and the U.S. economy.
A Republican self-imposed disaster will increase borrowing costs and tremendously damage the U.S. economy. If Republicans default on our debt, the U.S. interest rates will rise, demand for Treasuries will drop as investors stop or scale back investments in Treasury securities, and millions of Americans will lose their jobs. Moreover, the interest rate on all commodities will increase.
Before the Republican-led voluntary anti-debt ceiling insanity, the U.S. economy was vulnerable due to recent Bank failures. Congressional Republicans know that our two main adversaries, China and Russia, are cheering for their misguided, juvenile, and ill-advised debt ceiling threats. It makes you wonder just whose side Republicans are rooting for! One thing is for sure; they are not supporting the personal and economic INTERESTS of the American people. At this point, the only group that can pull Republicans back from the brink of disaster are their Donor Bosses!