Trump Angry as Biden Extends US Public Debt Ceiling to 2023

Donald Trump has launched a verbal criticism against Joe Biden and his administration for their handling of the United States' debt ceiling last year. On Truth Social, Trump called the decision to extend the debt ceiling 'one of the dumbest political moves in many years'. According to him, Biden has thrown an economic grenade into the hands of the Republican Party, turning what was supposed to be a Biden issue into a mess of the Republican Party. "There’s no reason to do that—NO BENEFIT WHATSOEVER," Trump wrote. He labeled the Democrats' move as reckless, claiming that they would rather witness a recession just to harm the Republican Party. "I call it '1929'," the president added, comparing the financial management of the Democratic Party to the Great Depression. Biden's 2023 budget agreement and its consequences The Financial Responsibility Act of 2023 has suspended the debt ceiling until January 1, 2025. On the surface, it seems like a breather for the US Treasury, which now has more time to pay its bills. But timing is everything. As we reported, Treasury Secretary Janet Yellen recently confirmed that the United States will reach a new debt ceiling in the period from January 14 to January 23, 2025. After that, the government will have to take special measures to avoid default. Please analyze this. The debt ceiling is the total amount of money that the government can borrow to cover things like Social Security, Medicare, military salaries, and national debt interest. When it reaches that ceiling, the Treasury cannot issue new debt, essentially causing the government to default. Programs such as Medicare, tax refunds, and military operations could all be severely impacted. Without an extension into 2023, the United States will default for the first time in history, causing turmoil in the global market. However, Trump is not very impressive. He believes that the Republican Party has been manipulated to clean up Biden's mess without any leverage. "This is Biden's issue, not ours," he wrote. The Republican Party is preparing for a showdown in Congress. Things are about to heat up on Capitol Hill. The Republicans, who will take control of both chambers on January 3, are gearing up for a debt ceiling battle. Hardline lawmakers have made it clear that they will not support a simple increase. They are pushing deep federal spending cuts in exchange for agreeing to raise the borrowing limit. Trump has added fuel to the fire. Recently, he proposed to completely eliminate the debt limit or extend it to 2029, the end of his hoped-for second term. This crazy idea, clearly supported by billionaire Elon Musk, did not last long. A group of Democrats and far-right Republicans killed this plan, citing concerns about skyrocketing budget deficits. Democrats accused Trump of wanting to make room for his "big tax cuts," which could further exacerbate the national debt. To put it in perspective, the national debt currently stands at 36.1 trillion dollars. That's not Monopoly money—it's the result of decades of spending combined with tax cuts. Interest alone has reached 1.15 trillion dollars this year. To compare, the US has spent less than 300 billion dollars on healthcare and defense combined. What do the numbers show The recent letter from Treasury Secretary Yellen outlined a bleak timeline. On January 2, 2025, the debt limit will be reset, adjusting for a repayment of $54 billion in securities related to Medicare. But this adjustment is only a temporary fix. By mid-January, the United States will once again reach its maximum borrowing capacity, triggering a financial countdown. Yellen urges Congress to act quickly, warning of serious consequences of inaction. According to her: “However, on January 2, the outstanding debt under this limit is expected to decrease by approximately $54 billion, mainly due to the scheduled repurchases of illiquid securities held by the Federal Reserve's trust funds related to Medicare payments.” The U.S. default will lead to a credit rating downgrade, increasing borrowing costs for American businesses and people. The global market will plummet, forcing the Federal Reserve to struggle to stabilize the economy. Adding to the pressure is the internal division of the Republican Party. Some lawmakers want to turn the debt ceiling into a weapon to force Biden to cut spending. Others are concerned about the economic risks of default. As usual, Trump is not patient with the cautious crowd. He demands that the Republican Party let the Democratic Party own this mess. "The Democratic Party must be forced to vote on this dangerous issue RIGHT NOW, during the Biden administration, not in June," he wrote. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)