President-elect Donald Trump has warned that the United States is on the verge of a “depression” as he criticizes the debt ceiling agreement reached by former House Speaker Kevin McCarthy.
The President-Elect, who failed to get Congress to pass a new provision raising the debt ceiling, attacked Democrats on social media, claiming that they would “prefer ‘Depression’ as long as it hurt the Republican Party.”
In his Truth Social post, Trump attacked the 2023 Fiscal Responsibility Act, which suspended the nation’s debt limit until January 1, 2025, calling it the “dumbest political decision made in years.”
He had written: “The extension of the Debt Ceiling by a previous Speaker of the House, a good man and a friend of mine, from this past September of the Biden Administration to June of the Trump Administration, will go down as one of the dumbest political decisions made in years.”
“There was no reason to do it – NOTHING WAS GAINED, and we got nothing for it – A major reason why that Speakership was lost,” said the politician. “This was Biden’s problem, not ours. Now it is ours. “I call it ‘1929’ because the Democrats don’t care what our country is forced into.”
“In fact, they would prefer ‘Depression’ as long as it hurt the Republican Party,” tweeted Trump. “The Democrats must be forced to vote on this dangerous issue NOW, during the Biden Administration, not in June. They should be held accountable for this potential disaster, not the Republicans!”
To avoid the United States defaulting on its obligations, lawmakers will need to act quickly in the New Year to raise the debt ceiling. Several economists have agreed that if it defaults, the economic consequences will be dire, potentially sparking a recession.
According to the Treasury Department, the national debt is currently around $36 trillion. After the first of the year, the Treasury Department may use “extraordinary measures” to ensure the United States does not default on its debts.
According to Newsweek, the current Treasury Secretary, Janet Yellen, wrote to Congress on Friday, stating that the department may have to take “extraordinary measures” as early as January 14 to prevent the United States from defaulting on its debt.
She called on lawmakers to “act to protect the full faith and credit of the United States.” Several economists believe Trump wants the ceiling resolved as soon as possible because it would jeopardize many of his goals when he returns to office on January 20.
To avoid a government shutdown, Trump demanded that the issue be resolved earlier in December. Despite Republicans’ compliance, the bill failed to pass the House of Representatives. Biden eventually signed a bill into law on December 21 that funds the government at current levels until March 24 without a debt limit provision.
