Trump Urges Republicans to “Default on US Debt”
There has been a significant intervention by former President Donald Trump as Washington grapples with a looming financial crisis. Trump appealed to Republicans serving in US legislatures on the issue.
The former president appealed to US senators and members of the US House of Representatives, claiming the US was spending too much and urging “not to allow the country’s debt ceiling to go up.”
Trump gave a speech in New Hampshire yesterday. Addressing an audience of Republican voters here, Trump took questions from CNN moderator Kaitlan Collins. Trump declined to answer questions about the Ukraine war and abortion.
‘WE SPEND MONEY LIKE DRUNKEN SEASONS’
When asked about the debt ceiling crisis, Trump said: “The situation is more psychological. “It could be really bad, maybe nothing at all,” he said. “I tell Republicans, congressmen, senators, if they don’t make big cuts, they shouldn’t intervene,” Trump said.
Trump, who said he was not likely to default because “the Democrats will definitely give up,” said a possible default could be better than the current situation because the United States spends money like drunken sailors.
The US Treasury had previously warned that a potential US debt crisis would pose “disastrous risk” to the global economy. However, it is estimated that Trump’s words will exert great pressure on the Republican speaker of the House of Representatives, Kevin McCarthy.
DEBT LIMIT DIFFERENCE
In the US, the federal government has reached the $31.4 trillion debt limit that could lead to default.
The debt limit, or debt ceiling, means “the upper limit of the amount of money the US government can borrow to pay its debts.”
Republicans, who have a majority in the House of Representatives, favor major spending cuts in the debt limit negotiations. Democrats insist on raising the debt limit and reject Republican proposals to cut certain spending.
There is concern that the debt limit issue, which has become an impasse between Democrats and Republicans, will rock markets. As US recession expectations rise, bipartisan debt limit calculation poses more risks than ever