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Yesterday's report on the negotiations around the US debt.

Monday Dayton
18. 5. 2023
3 min read

Speaker of the House of Representatives Kevin McCarthy said in an interview with CNBC that he doesn't think the US will default on its debt as tense debt ceiling negotiations continue.

Top officials from both sides of the aisle on Wednesday assured Americans that the U.S. will not default on its debt as tense debt ceiling negotiations continue."I don't think at the end of the day we have a default on the debt," said House of Representatives Speaker Kevin McCarthy

President Joe Biden echoed that sentiment later in remarks from the White House. "We're going to come together because this is not an alternative." "Every leader in the room understands the consequences of failure."

The statements by the House speaker and the president were the latest signs that negotiations, which have been on hold for months, are now moving into a more serious and concrete phase and potentially closer to a deal.

Leaders are running out of time to raise the debt ceiling before the June 1 deadline, when the government runs out of money. McCarthy met with Biden at the White House on Tuesday along with Vice President Kamala Harris and other top congressional leaders in an effort to seal a deal before the president leaves for Japan.

McCarthy said Wednesday he was not optimistic about the status of the talks, but said he was encouraged by Biden's willingness to negotiate.

"The only thing I'm convinced of is that we now have the structure to find a way to come to a conclusion," McCarthy said.

The raises are necessary for the government to cover spending commitments already approved by Congress and the president - and avoid default. Doing so does not justify new spending. But Republicans in the House of Representatives have said they won't raise the limit unless Biden and lawmakers agree to future spending cuts.

"It was a very positive meeting yesterday," Jeffries said. "There was a calmness. It was frank in terms of discussion, and I'm optimistic that we'll find common ground in the next week or two."

My take: There's still plenty to deal with, and anyway, in my opinion, they'll just "push the problem off" again by therefore increasing the debt again. However, for me this is not a solution to the situation. I'm not an economist, so I don't know the exact solution to this, but just generally printing new money over and over is the problem. The government doesn't have the money, so they should just raise taxes and stop throwing money around in meaningless aid or government salaries. Yes, it will be borne by all the people, and as always, more by the poorer ones, but I guess there's just nothing to be done when the leaders in government behave irresponsibly.

So what do you think and what is your opinion on this? :)

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