House Republicans Prepare for US to Default on Debt

The debt ceiling is drawing closer by the week.

Instead of planning how to make a negotiation, House Republicans seem to be preparing for the US to default when the time arrives.

If the US breaches the debt ceiling, it will kick off a catastrophic economic and financial spiral in the US and around the world.

But Republicans don’t seem to want a solution, they just want to manage the worst of it once that happens.

It’s a “Burn the world to spite the Biden admin” approach that they’re banking on voters not picking up on. They’re hoping voters will blame the crisis on the Democrats ahead of the 2024 election, but the human cost of the gambit is incalculable..

Secretary of Treasury Janet Yellen says, “This economic catastrophe is preventable. The solution is simple: Congress must vote to raise or suspend the debt limit. It should do so without conditions. And it should not wait until the last minute. I believe it is a basic responsibility of our nation’s leaders to get this done.”

Even a short default would mean one million jobs lost, and kick the US into a mild recession at the end of 2023. A prolonged default would mean 7 million jobs lost, and stock prices going down by 1/5th. That would erase $10 trillion in household wealth.

Democrats are demanding Republicans unveil the plan they keep promising but have yet to materialize.