To put the responsibility on McConnell, Biden is planning a debt ceiling blitz.
At this point, the president and his staff are preparing for a spectacular conclusion. The result will be an increase in the temperature.
To put the burden entirely on Senate Minority Leader Mitch McConnell for the financial brinkmanship,
the White House has immediately started turning the screws on Republicans after months of playing it cool.
On Monday, Vice President Joe Biden entered the fray, accusing Senate Republicans of “hypocrisy, danger,
and dishonor.” Jen Psaki, the White House press secretary, accused Republicans of spending like “drunken sailors” under President Donald Trump and showed a graph contrasting the debt they accrued. A number of surrogates will be sent by the White House in an effort to frame the discussion as one between a Senate minority leader who is blocking ways to avoid default and an administration that offers quick fixes.
Republicans led by McConnell have twice defeated attempts to raise the debt ceiling to avert a historic default.
and they continue to assert that they would do nothing to make things easier for Democrats. At least for the time being, his backers on Wall Street seemed comfortable
with Democrats not backing down even if Biden warned of fiscal devastation if the debt ceiling was breached.
Former UBS Americas CEO and Obama economic adviser Robert Wolf remarked, “To me, this is craziness that Republicans who talk like they are so pro-business are messing around
with the full faith and credit of the United States government.” There should be no polarization over this subject, which is why no one is working on it. If you want to get into a policy debate over things like infrastructure, climate change, or healthcare benefits, go ahead and do it. However, I doubt you want to get into a debate over raising the debt limit.
It’s an acknowledgment of sorts that the White House’s new, more confrontational approach to the debt ceiling dispute hasn’t delivered the expected outcomes. The administration had eschewed addressing the matter through previous legislative vehicles in the hope that the business community and Wall Street might exert pressure on at least 10 Senate Republicans to vote to raise or suspend the debt ceiling in order to avoid an economic catastrophe. When that became increasingly unlikely, Democrats attempted to pass legislation by a simple majority vote but were met with Republican opposition. Currently, with the default deadline looming, there is little hope in the government that the situation will be resolved without a fight.
Officials from the White House stated Monday that while they prefer to use other methods, raising the debt ceiling via the budget procedure known as reconciliation is still an option. Senate Majority Leader Mitch McConnell has been asking the White House to do this for months. Republican senators who voted for Trump’s debt ceiling
hike are concerned that the party will take advantage of the chance to waste valuable Senate floor time, and Vice President Joe Biden labeled that strategy as hazardous, difficult, and onerous.
After administration officials had carefully deployed many other key officials to drive home the urgency, he stated on Monday, “If you don’t want to help preserve the country, get out of the way so you don’t damage it.”
Both the White House and Republican leaders have indicated the ceiling cannot be negotiated,
therefore there are only a few options left. Republicans may be persuaded to compromise. Democrats have the ability to modify Senate rules
and pass a debt ceiling increase with just 50 votes if they choose to do so. It’s also possible that Republicans will agree to put up less time-sucking roadblocks if Democrats decide they’ll have to approve it through reconciliation, as many expect.
If the debt ceiling is lifted, McConnell has made it clear he doesn’t want to help Biden. He says the Democrats must go it alone because he gave them “almost three months’ notice to do their job.”
According to Wolf, Wall Street and industry pressure hasn’t moved
with Republicans yet because corporate giants themselves believe a resolution will be reached. What has bothered him, though, is the lack of consideration shown to Treasury Secretary Janet Yellen,
who has frequently warned that the country could face an unexpected default if the limit isn’t handled quickly enough.
According to Wolf, the notion that the Fed is ignoring Yellen’s calls is “completely off base.” He described Yellen as knowledgeable and not someone who would “cry wolf.”
Yellen and Biden discussed the consequences of default at length on Monday:
It’s risky to send our economy off of the cliff now, he warned. It puts jobs and retirement savings, Social Security payments, and salaries for military personnel and veterans in danger. Mitch McConnell
Despite the fact that they’ve had no luck with the GOP, administration officials
and supporters think they’re making a good impression with the general people. A vast list of editorials and opinion articles from critical swing states blaming Republicans for the deadlock was cited
by Democratic Party officials as proof. They believe that a fight that was once dismissed as a Beltway fetish
with potentially fatal economic ramifications is now resonating with the general public.
Meanwhile, the Republican Party is placing two bets of its own.
There are two problems with this: first, the general public will be unable to discern traditional debt from arcane regulations pertaining to the debt ceiling. Two: If the economy suffers, people will blame the party now in office. Mitch McConnell
Because of this, progressives want the White House to think outside the box. Some Democrats, including the Economic Policy Institute’s director of research,
Josh Bivens, has grown to advocate a course of action that would postpone raising the federal government’s debt limit for years and years.
In other words, he advised individuals to “just raise it to a ridiculous figure”
and then claim they’ve “essentially abolished it” and are no longer burdened by the obnoxious rule.
For Biden and the White House, the goal is to make Republicans pay a price for extending the debt ceiling, and Bivens said he understands that. While warning the administration to be ready to remove the threat unilaterally,
he suggested minting platinum coins or simply ignoring the limit and continuing to issue debt, Mitch McConnell
defying anyone who tries to intervene. Officials at the White House have said they cannot or will not do one of these things.
According to Bivens, “in the end.
I think everybody is anxious about avoiding an unwarranted political hit” as a result of this. To put it another way, I don’t believe that people are concerned about the debt ceiling. They are concerned about the state of the economy and their own circumstances.”
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