House Speaker Nancy Pelosi (de-Calif.) On Sunday released a “dear colleague” letter about the ongoing tensions between Republicans and Democrats about raising the limit, urging Congress to “unite” to raise the limit.
The current war over the U.S. limit began in August, when Senate Republicans, dissatisfied with Democratic spending, signed a letter promising not to vote to increase the U.S. limit. The Senate Republican, led by Sen. Ron Johnson (R-Wis.), Devised the strategy as a way for the Democrats to take full responsibility for the politically unpopular (PDF) move to increase Democrats’ boundaries.
They interpreted the move as a response to the Senate Democrats’ Sen. Barney Sanders (I-Vt.) Budget of $ 3.5 trillion outside the committee without a Republican vote. The delegation notes, “For this expenditure, our country’s debt ceiling needs to be significantly increased.” Republicans refused to take part, Johnson’s group said, adding that “appropriately every Democrat must take responsibility for spending beyond their control.”
Since then, these forty-six Republicans have remained steadfast in their commitment. In the House, more than 100 Republicans signed similar petitions.
In an interview with Punchbowl News, Senate Minority Leader Mitch McConnell (R-Ky.), Who signed the petition, said:[will] Vote to increase the limit. ”
In Fox Business, another signer is Sen.
With the deadline for extending the secretary’s term fast approaching, Secretary Janet Yellen has warned that the Treasury will end its efforts to fund the government by mid-October. If Congress fails to raise the threshold, the U.S. government will face default, a move that Yellen warned would have “absolutely dire economic consequences.”
But despite their ability to increase their own the limit through budget reconciliation, the team is reluctant to take the full weight of the measure. At a news conference in September, Pelosi announced that the Democratic budget bill would not include raising the debt limit.
Pelosi’s “dear colleague” letter appears to be an attempt to defuse tensions as the October default frequently comes to a close.
He pledged in the letter that “Congress, as always, is firmly committed to the full confidence and achievement of the United States in never letting it be threatened,” noting that historically, it was a bilateral effort.
“Indeed, since 2011, whenever there has been a need to increase the debt limit, Congress has addressed it on a bilateral basis, including three times during the last administration,” Pelosi wrote.
Congress is returning to the session on Monday, and raising the debt limit will be one of its many priorities. “When we take the debt limit this month, we hope it will be bilateral again,” he said.
Pelosi stressed that raising the debt limit is not just about the new promises included in the yet-passed budget bill, but also about the old ones.
“Addressing the limitation is about fulfilling the obligations already set by the government, including the bilateral Covid Relief Act from December, as well as significant payments to Social Security recipients and our seniors,” he said.
Failing to raise it, he warned, “It will have … absolutely dire economic consequences. It will be unprecedented in US history for the US government’s legal obligations to default. Among these consequences, Pelosi predicted that” it will create a financial crisis. ” Which “threatens the jobs and savings of Americans and at a time when we are still recovering from the Covid epidemic.”
He pointed to warnings from financial analysts and organizations about the risks.
One such warning came from Moody’s chief economist Mark Jandy, who warned that a default would be “financial Armageddon.”
Another came from Jamie Dimon, CEO of JPMorgan Bank, who said that a default could “immediately, literally cause catastrophic proportions and hurt America for 100 years.”
He further noted that in 2019, then-Senate Majority Leader Mitch McConnell (R-Ki.) Supported raising the debt limit. Pelosi McConnell was quoted as saying that raising the debt limit “ensures that our federal government will not go into a short-term debt crisis in the coming weeks or months. It ensures the full confidence and credit of our nation and ensures that Congress Don’t put yourself in the gear of the economy.
Pelosi concluded, “The limit is a shared responsibility, and I urge Congress, in that spirit, to unite on a bilateral basis, as it has in the past, to preserve the full confidence and achievements of the United States.”
This News Originally From – The Epoch Times