Trump urges Republicans to ‘default US debt’
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Trump has appealed to US congressmen dealing with the debt crisis, stating that defaulting on US debt is a better option if major spending cuts are not made.
Significant intervention has come from former president Donald Trump as Washington struggles with an impending financial crisis. Trump, USA He made a call to the Republicans serving in the legislatures on the subject.
The former president appealed to US senators and members of the House of Representatives, stating that the US was spending too much and urging ‘not to let the country’s debt ceiling go up’.
Trump gave a speech in New Hampshire yesterday. Addressing an audience of Republican voters here, Trump answered questions from CNN moderator Kaitlan Collins. Trump refused to answer questions about the Ukraine war and abortion.
‘WE SPEND MONEY LIKE DRUNKED SEASONERS’
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’m telling Republicans, congressmen, senators out there, if they don’t make big cuts, you shouldn’t step in,” Trump said.
Trump, who said he was not likely to default because ‘Democrats will definitely give up’, said a possible default could be better than the current situation because the US spends money like drunken sailors.
The US Treasury had previously warned that a possible US debt crisis would pose a ‘disastrous risk’ to the global economy. However, it is estimated that Trump’s words will put 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 on the amount of money the U.S. government can borrow to pay off its debts.”
Republicans, who hold a majority in the House of Representatives, are in favor of significant spending cuts in debt-limit negotiations. Democrats insist on increasing the debt limit and reject Republican proposals to cut certain spending.
There are concerns that the debt limit issue, which has become a deadlock between Democrats and Republicans, will shake the markets. As US recession expectations rise, bipartisan reckoning over debt limit poses more risk than ever
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