Friends, It’s going to be up to Joe Biden to protect the full faith and credit of the United States. By that, I mean the Biden administration, including the cautious Treasury Secretary Janet Yellen, will almost certainly have to take a leap into the unknown and continue paying the government’s bills and issuing new debt when Congress fails to raise the debt ceiling sometime within the next couple of months. The “negotiations” between the White House and Kevin McCarthy, the hanging-by-a-thread Speaker of the House, are essentially a sham. There’s no conceivable compromise between what House Republicans are demanding as a price to raise the debt ceiling for another few months – gutting domestic government spending, reversing legislation to start confronting global climate change, killing off the effort to improve IRS oversight of wealthy tax scofflaws, preventing Medicare from negotiating drug prices, and much more – and what Democrats will accept.
Redburn Reads, May 13, 2023
Redburn Reads, May 13, 2023
Redburn Reads, May 13, 2023
Friends, It’s going to be up to Joe Biden to protect the full faith and credit of the United States. By that, I mean the Biden administration, including the cautious Treasury Secretary Janet Yellen, will almost certainly have to take a leap into the unknown and continue paying the government’s bills and issuing new debt when Congress fails to raise the debt ceiling sometime within the next couple of months. The “negotiations” between the White House and Kevin McCarthy, the hanging-by-a-thread Speaker of the House, are essentially a sham. There’s no conceivable compromise between what House Republicans are demanding as a price to raise the debt ceiling for another few months – gutting domestic government spending, reversing legislation to start confronting global climate change, killing off the effort to improve IRS oversight of wealthy tax scofflaws, preventing Medicare from negotiating drug prices, and much more – and what Democrats will accept.