US Politics

Debt ceiling increase sends Dems into full apocalypse mode: ‘Chaos,’ ‘recession,’ ‘global financial crisis’

Senate Majority Leader Chuck Schumer is one of many Democrats warning of economic ruin because of the GOP push to negotiate spending cuts as part of a debt ceiling increase. (Al Drago/Bloomberg via Getty Images)

The prospect of negotiating a debt ceiling increase with Republicans is prompting warnings of economic ruin and chaos from President Biden’s White House and Democratic leaders in the House and Senate.

Democrats for days now have been fixated only on what might happen if there is no agreement to raise the debt ceiling by the summer, and not the far more likely possibility of agreeing to spending cuts at the federal level over the next few months in return for an increase in the government’s borrowing limit.

The Democrats’ dire predictions started with Treasury Secretary Janet Yellen, who told House Republicans last week that a debt ceiling hike would be needed by June. She urged lawmakers to quickly raise the ceiling in order to allow the government to keep paying its obligations and “protect the full faith and credit of the United States.”

Over the weekend, Yellen speculated at length about what would happen if Congress failed to raise the debt ceiling by June, and predicted “irreparable harm to the U.S. economy, the livelihoods of all Americans and global financial stability.”

DEMOCRATS PUSH TO ELIMINATE THE DEBT CEILING, ALLOW UNLIMITED GOVERNMENT BORROWING

Senate Majority Leader Chuck Schumer is one of many Democrats warning of economic ruin because of the GOP push to negotiate spending cuts as part of a debt ceiling increase. (Al Drago/Bloomberg via Getty Images)

“If that happened, our borrowing costs would increase and every American would see that their borrowing costs would increase as well,” Yellen said. “On top of that, a failure to make payments that are due, whether it’s the bondholders or to Social Security recipients or to our military, would undoubtedly cause a recession in the U.S. economy and could cause a global financial crisis.”

The White House has similarly spent the last week warning of apocalyptic economic scenarios that would follow a decision not to raise the debt ceiling by June. White House press secretary Karine Jean-Pierre accused Republicans of “threatening to kill millions of jobs and 401(k) plans by trying to hold the debt limit hostage.”

Jean-Pierre warned repeatedly that a debt ceiling hike was not open to negotiation. “There will not be any negotiations over the debt ceiling,” she said, adding that it’s an “obligation” of Congress to raise the ceiling without condition and “avoid economic chaos.”

President Biden himself called Republicans “fiscally demented” last week for seeking cuts to the federal…

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