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Senate Minority Leader Mitch McConnell (R-Ky.) listens to the Senate Rules Committee hold a hearing on the "For the People Act" which would increase access to voting at the Capitol in Washington, Wednesday March 24, 2021. Scott J. Applewhite/AP
McConnell said that he is confident the US will not default, after leading a Republican effort to reject an increase in debt limits.
He stated to Politico that Democrats would seek a debt limit increase because "we always do."
Pelosi suggested that Democrats might try to skirt GOP opposition by using maneuvers such as minting a $1 Trillion coin.
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After leading a Republican drive against a debt limit increase, Mitch McConnell, Senate Minority Leader, insists that the US will not default on its debt. This effort brought the nation closer towards being unable to pay its bills in three weeks.
"I know that the country will not default. In an interview with Politico Tuesday, the Kentucky Republican said that he knew they had the votes to accomplish this. "I have no doubt they will take care this," he said.
He believed Democrats would get a debt limit increase because "we always do."
McConnell and all Senate Republicans blocked a measure to avert a shutdown of the government and a default on Monday, as President Joe Biden intensified his efforts to undermine President Joe Biden. The Democrats are now scrambling to find alternatives, with Janet Yellen, Treasury Secretary, warning of a default Oct. 18.
In a letter addressed to Congressional leaders, she stated that "the full faith and credit" of the United States should not have been at risk.
McConnell and other Republicans say they support raising the borrowing limit, but believe Democrats should finance their $3.5 trillion reconciliation spending plan by themselves. This is the tactic Democrats use to get around fierce GOP opposition by passing the package with a simple majority vote.
Experts and Democrats counter that the debt ceiling is not applicable to past spending and should be raised in this year, regardless of Democratic spending plans. Democrats could face danger if they try to raise the debt limit in reconciliation on party lines, due to the short timeline and narrow margin of error as well as the many procedural hurdles that are involved.
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"We must raise the debt ceiling."
Senator Majority Leader Chuck Schumer stated Tuesday that he would try to approve the debt ceiling increase via unanimous consent later in day. This tactic is aimed at passing the measure with a simple majority vote. This is where the problem lies. Any single lawmaker could stop it by casting a "no".
In a sign that they want to inflict maximum suffering on Democrats and drag out this process, Republicans seemed determined to block it as well. On Tuesday, Sen. Ted Cruz stated to reporters that he would not consent to lower thresholds and make it easier [Schumer]," while pledging to fight it. Schumer was accused of playing "political tricks."
Insider was told by Sen. John Cornyn, Texas, that he thought he'd be the first to object to the move. He also predicted that other Senate Republicans would follow his lead. Reporters were also informed by Sen. Ron Johnson, Wisconsin.
A potential default could have serious consequences for the American economy. If the Treasury cannot pay back any debt owed, it would have to prioritize federal programs over others. Social security checks could be stopped abruptly for millions of seniors, while soldiers in the US could lose their paychecks. The White House warned about possible cuts to safety net programs such as Medicaid.
At a press conference Tuesday, Nancy Pelosi, House Speaker, stated that House Democrats are looking at possible alternatives. Among them was the suggestion by Reps. Jerry Nadler (New York) and John Yarmuth (Kentucky) to mint a $1 trillion dollar coin. Another bill would also need to be passed and signed by the President in order to repeal raising debt limits.
She stated, "We must raise the debt ceiling."
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