A beautiful Friday afternoon in Washington DC. The air is pleasant and crisp. People are thinking about what weekend activities to partake with family, so to take advantage of this lovely weather. Except, the debt ceiling is wiping out all the hope for such activities if you were part of the negotiation teams between the two political parties.
Because the time is short before the X day, when the US government defaults on its debts in twelve days (1 June). The negotiation is at the highest level between the Speaker of the House, Kevin McCarthy (R-Ca), and the President Biden. Both sides agree that the government should not default on its debt. But that’s where the agreement ends.
Earlier in the day, the negotiation teams hit a snag and paused their talks. Pouring cold water on every possible hope. Only after some behind the scene arm twisting by McCarthy, the negotiation resumed after 6 pm. By then, the stock market was closed after absorbing the bad news earlier.
Think this is unusual and one-off? Think again. The US Congress has gone through this brinkmanship 78 separate times – 49 under Republican administration and 29 under Democrat presidents. This can’t be healthy, productive, or sane. Is it any wonder why the rest of the world is worried as well?
What consequence, other than the 2024 presidential election, will result from this brinkmanship?