Ringmaster Kevin McCarthy and the Shutdown Clowns are once again announcing their plans to cut trillions in social spending and crash the economy with the debt ceiling, not caring that the demand is supposed to be "or" not "and".
In his speech Monday, McCarthy sought to lay the blame for any potential market fears of a default at Biden’s feet.
“The longer President Biden waits to be sensible to find an agreement, the more likely it becomes that this administration will bumble into the first default in our nation’s history,” he said.
Biden, meanwhile, has demanded that House Republicans produce their own budget as a starting point to negotiations. But getting his entire caucus — whose members disagree on what to cut and by how much — to sign on to one budget blueprint would be a herculean task for the Republican speaker.
“Let me be clear, defaulting on our debt is not an option. But neither is a future of higher taxes, higher interest rates, more dependency on China and an economy that doesn’t work for working Americans,” said McCarthy. “Addressing the debt requires us to come together, find common ground and reduce spending.”
The fact that McCarthy was roping two unrelated legislative tasks – passing a debt ceiling hike and approving a federal budget – together as one deal remained a nonstarter for the White House.
In statement Monday morning, White House spokesman Andrew Bates accused the California Republican of “holding the full faith and credit of the United States hostage, threatening our economy and hardworking Americans’ retirement.”
Despite McCarthy’s attempt to portray the White House as lagging behind or late to the table, the current state of affairs lines up with what a White House official told CNBC earlier this spring.
The Biden administration planned to pursue negotiations in earnest with Congress only after Tuesday’s tax deadline.
At that point, the official said, the federal government would have a better idea of how much revenue was coming in from taxes, and how far it would go toward paying the country’s bills. This would influence how urgently the White House would need to reach a deal with congressional Republicans.
Biden has a budget proposal and a debt ceiling proposal, McCarthy doesn't have the votes for either. That's the difference...and oh yes, the spending cuts the House GOP want would smash a hole in the economy, and the House also wants the ability to take the economy hostage again a year from now so they can do even more damage and blame Biden for it.
It's a pretty horrific situation, but the worst part is, again, McCarthy doesn't have the votes to pass anything without Democratic help. Maybe that forces him to the table, but maybe that leads to default and economic depression.
We'll see. The clock is running out and all sides know it.
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