Musings:
Political cartoons rely on hyperbole to make a point, yet it's hard to exaggerate the damage that would result from the United States defaulting on its debt.
Right now, Congressional Republicans and the White House are at loggerheads over raising the nation's debt ceiling; in other words, Washington can't agree to borrow more money to pay our nation's bills. This is necessary because we've borrowed right up to our legally mandated limit, the so-called debt ceiling. Never mind that the appropriate time to discuss what to spend and what to cut is during budget negotiations, Republicans are now insisting on severe spending cuts in exchange for their support in raising the debt ceiling.
Since January, Treasury Secretary Janet Yellen has been resorting to "extraordinary measures" to keep the country financially afloat but predicts that the nation could enter default as early as June.
How worried should you be? Here's how the experts describe the situation:
- "We're watching a slow-moving trainwreck collide with a dumpster fire." — Isaac Boltansky, director of policy research at Bandwidth Technologies International Group
- "The act of holding the full faith and credit of the United States hostage is the economic equivalent of aiming a nuclear missile at the American (and world) economies and demanding concessions. It's not a bargaining tactic. It's a terrorist tactic." — Former U.S. Labor Secretary Robert Reich
- "If Congress fails to increase the debt limit, it would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests." — Treasury Secretary Janet Yellen
- "The risk and threat of default is a risk (of) economic catastrophe for all Americans." — Gene Sperling, senior economic adviser to President Biden
When comments from the experts surpass the hyperbole of political cartoons, we're in deep trouble.
Comic relief:
America's late-night comedians have honed in on the debt ceiling impasse:
