What if there is no debt ceiling deal?
The debt ceiling is a limit set by the United States government on the amount of debt that it is legally allowed to accumulate. When the government reaches this limit, it can no longer borrow money to finance its operations, which could lead to a default on its debt obligations.
"The very notion that we would default on the safest, most respected debt in the world is mind-boggling," Biden says of the debt ceiling in Springfield, Va.— Ken Thomas (@KThomasDC) January 26, 2023
If the debt ceiling is not lifted, it could have serious consequences for the U.S. economy and financial markets. The government would be forced to make difficult decisions about which bills to pay and which programs to cut, which could lead to a reduction in government services and a slowdown in economic growth.
I love the irony of taking the most irresponsible position on the debt ceiling—that you, as president, will not negotiate with Congress to get debt under control—and trumpeting it as the responsible position.— Justin Amash (@justinamash) January 26, 2023
Additionally, a failure to lift the debt ceiling could also lead to a loss of confidence in the U.S. government's ability to manage its finances, which could cause interest rates to rise and make it more expensive for the government and businesses to borrow money.
It's important to keep in mind that the debt ceiling is a political tool and has been used as a bargaining chip in budget negotiations. In the past, the debt ceiling has been raised temporarily or permanently to avoid a default, but the process can be quite unpredictable and the outcome is not certain. It is also important to note that there are also proposals to change or eliminate the debt ceiling altogether.
In any case, it's important to stay informed and to follow the latest developments on the issue and consult with experts in the field to get a comprehensive understanding of the situation.
If President Biden is so eager to speak on the economy, then he should set a date to discuss a responsible debt ceiling increase.— Kevin McCarthy (@SpeakerMcCarthy) January 26, 2023
We must finally address Washington’s irresponsible government spending if we want to put America on a better fiscal path.