Treasury starts taking 'extraordinary measures' after US hits debt limit

WASHINGTON — An artificially imposed cap, the debt ceiling has been increased roughly 80 times since the 1960s.

But this particular moment seems more fraught than past brushes with the debt limit because of the broad differences between Biden and new House Speaker Kevin McCarthy, who presides over a restive Republican caucus. Biden insists on a “clean” increase to the debt limit so that existing financial commitments can be sustained and is refusing to even start talks with Republicans. McCarthy is calling for negotiations that he believes will lead to spending cuts. It's unclear how much he wants to trim and whether fellow Republicans would support any deal after a testy start to the new Congress that required 15 rounds of voting to elect McCarthy as speaker.

Any deal would need to pass the Democratic-run Senate. Many Democratic lawmakers are skeptical about the ability to work with Republicans aligned with the “Make America Great Again” movement started by Trump. The MAGA movement has claimed that the 2020 election lost by Trump was rigged, a falsehood that contributed to the Jan. 6, 2021, insurrection at the U.S. Capitol.

What happens if these measures are exhausted without a debt limit deal is unknown. A prolonged default could be devastating, with crashing markets and panic-driven layoffs if confidence evaporated in a cornerstone of the global economy, the U.S. Treasury note. Still, if past debt ceiling showdowns such as the one that occurred in 2011 are any guide, Washington may be in a nervous state of suspended animation with little progress until the “X-date,” the deadline when the Treasury's “extraordinary measures” are depleted.

I have an idea! It's not like these things just show up out of the blue. Why don't BOTH parties get together and deal with these type of issues BEFORE last minute! Why does everything have to wait until the last second. What happened to being responsible and planning ahead?

While we keep giving Ukraine billions of dollars every few months.

It just feels embarrassing.

But this is what people that vote republican want right? To burn it all down? Good luck with your no social security or any healthcare.

It's long past time to stop paying for things with the national credit card. If you can't pay for it don't buy it. We're headed for a very ugly crash if this doesn't stop.

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