Former U.S. President Donald Trump reportedly urged congressional Republicans in both chambers to allow the Democratic Party to raise the debt ceiling to pressure the Biden Administration to carry out spending cuts in the future.
Under the former president’s plans, a nationwide debt ceiling increase by the end of 2023 would stoke a market showdown that would pressure Democrats on spending cuts, Bloomberg has reported.
Specifically, the danger of a debt crisis that could push the U.S. to the brink of default would allow Republicans to use the debt ceiling as a bargaining chip as concessions on government spending.
Trump has stated on his social network Truth Social that the Republicans could reverse «almost everything» that the Democrats have carried out in the last two years by threatening a debt default, according to the aforementioned agency.
The former president signed three increases or suspensions of the debt limit during his term of office, which allowed the red numbers of the United States to swell by almost 8,000 million dollars (7,500 million euros).
A debt ceiling battle between House Republicans and the Democratic White House in 2011 brought the country to the brink of default, triggering a downgrade of the Treasury’s debt rating and a plunge in U.S. stocks.
Source: (EUROPA PRESS)