usa economic crash : Default Coming This Summer – House Speaker Kevin McCarthy (R-CA) wants to discuss a possible deal with President Joe Biden in order to avoid a default on America’s enormous national debt. If McCarthy believes that he can find an offramp for America before the House fails to raise the debt ceiling this summer, he is deluding himself, since he is the weakest Speaker the House has ever had (after ceding many points of control to a handful of House Republican ideologues). It is fundamentally understood by Biden’s team that neither the House GOP members nor their leaders are on the same page.
Additionally, anyone with a few operational brain cells understands the stakes involved in the (non) negotiations of the debt ceiling: the survival of the American economy. The situation has to be resolved within a short period of time. Once again, the polarization of American political culture is causing real damage.
About Of usa economic crash?
There are some concerns about the US economy. According to an expert, the US economy could suffer a sweeping downturn that rivals the 2008-style collapse as the ‘everything bubble’ bursts. Stocks may crash 30% and the American economy could suffer However, it is important to note that an economic crash or total collapse is unlikely; the last one we experienced was the Great Depression of the 1930s. Even the financial crisis of 2007-09 was “just” an economic crisis
Summer could be a risky time for the U.S. economy
- The COVID-19 pandemic continues to impact the economy, leading to decreased consumer confidence and spending, business closures, and job losses.
- The stock market is experiencing significant volatility and could experience a sharp decline, leading to a ripple effect on the broader economy.
- Inflation is rising rapidly, potentially leading to higher interest rates, reduced investment, and increased consumer debt.
- Supply chain disruptions, caused by factors such as shipping delays and labor shortages, could cause shortages of goods, leading to increased prices and decreased economic activity.
- Political and geopolitical uncertainties could also play a role, leading to decreased investment and consumer confidence.
There is a lunatic fringe that rules us
The Democratic Party’s radical elements-including President Biden-wish to pass a ridiculous $6.8 trillion spending bill that will contribute further to America’s debt crisis. Alternatively, the Republicans are being dominated by extreme figures who refuse to negotiate with the Democrats unless key social programs, on which countless Americans depend, are severely cut.
He has been haranguing Biden to deal fairly with him and wants to meet with him. Despite McCarthy’s status as a figurehead, the White House understands his importance. McCarthy shares this unfortunate trait with President Biden, who is simply a figurehead for a cabal of radical left-wing ideologues who populate his administration and run it in his name.
As a result of McCarthy’s limited power, most of his members lack respect for him, making it difficult to keep them in line. In the eyes of the Democrats, negotiating with McCarthy would be pointless because, unless he gets the support of all his members, McCarthy might lose power; the precarious negotiations would be derailed, and this would make the Democrats look bad leading up to the important 2024 presidential election.
In addition, Democrats are not motivated to negotiate about how to avoid a default on the national debt because they think they will not be held accountable for the economic fallout resulting from not raising the debt ceiling. Democratic strategists who believe this are likely to be right as well.
In the end, most Americans support a robust government (they favor reforming government programs rather than cutting them). Seventy percent of Americans favor a compromise between Congress and Biden on the debt ceiling. Also, they don’t mind if the rich pay for these programs by paying higher taxes that are only intended for the nation’s top earners.
There is no doubt that the Republicans are doing the right thing: cutting the debt load and creating an economy that is more sustainable and free. There’s a problem with the way they’re doing things. Republicans will be ruined by having this nasty fight going into the presidential election, when the economy might completely collapse as a result of the Republicans using the debt ceiling to force cuts that the Democrats (and most Americans) oppose.
Courting national disaster for political gain: Calculating and courting disaster
Biden and the Democrats are not the ones who want to hold up the debt ceiling vote, according to most people. The implications of this action are not fully understood by many. America will not only default on its debt for the first time (which is embarrassing on its own), but it will also be subjected to a massive devaluation of the US dollar globally; interest rates will skyrocket beyond the already stratospheric level they’re at.
There are a number of social programs that Americans are dependent upon that will stop paying out. Among the sectors affected by this will be the private sector as well. Defaults will be catastrophic for most major pension plans, meaning millions of ordinary, working Americans will lose most (if not all) of their pensions within a few months.
In Kevin McCarthy’s opinion, who will be blamed for this?
Observe what has happened so far in the country. Look at how everything is falling apart and yet Biden has not fully been blamed. American voters believe that Democrats are the caring spenders while Republicans are the heartless misers who want to throw grandma over the cliff and put poor people out on the streets. Most voters believe that Republicans are responsible for failing to raise the debt ceiling.
Biden’s Administration has no incentive to negotiate with the GOP in good faith. The goal of Biden’s plan is to have the American people totally turn against the GOP in 2024 if the debt ceiling is not raised. There is a possibility the Republicans will get lucky and the voters see Biden for what he is: an empty vessel for radical Left-wing interests. Voters will be so angry over the national economy by 2024 that they will not vote for the GOP candidate for president. If history is any guide, they will blame the Republican Party for the deteriorating economy.