As GOP Obstructs, Biden Escalates Warnings of Default

October 6, 2021by Lisa Mascaro and Joanthan Lemire, Associated Press
As GOP Obstructs, Biden Escalates Warnings of Default
President Joe Biden delivers remarks on his "Build Back Better" agenda during a visit to the International Union Of Operating Engineers Local 324, Tuesday, Oct. 5, 2021, in Howell, Mich. (AP Photo/Evan Vucci)

WASHINGTON (AP) — President Joe Biden is escalating his campaign to get Congress to lift the federal debt limit, hosting business leaders at the White House Wednesday and warning in a new report that failure to extend the government’s borrowing authority could set off a global financial crisis.

The moves come amid indications Democrats may change Senate filibuster rules to get around Republican opposition.

Biden will host a number of CEOs — including the heads of banks like Citi, JP Morgan Chase and Bank of America — to underscore the severe ramifications if the government runs out of money to cover its bills.

Ahead of the meeting, the White House warned that if the borrowing limit isn’t extended, it could set of a global financial crises that the United States may not be able to manage.

“A default would send shock waves through global financial markets and would likely cause credit markets worldwide to freeze up and stock markets to plunge,” the White House Council of Economic Advisers said in a new report. “Employers around the world would likely have to begin laying off workers.”

The recession that could be triggered could be worse than the 2008 financial crisis because it would come as so many nations are still struggling with the COVID-19 pandemic, the report said. It was first obtained by The New York Times.

Congress has just days to act before the Oct. 18 deadline when the Treasury Department has warned it will run short of funds to handle the nation’s already accrued debt load. 

The Senate, meanwhile, is scheduled to vote Wednesday on whether to take up a bill to suspend the debt limit, but Republicans are again expected to block it.

To get around the GOP standoff, Biden indicated in off-the-cuff comments Tuesday Democrats are weighing a procedural change. 

“It’s a real possibility,” Biden told reporters outside the White House.

Getting rid of the filibuster rule would lower the typical 60-vote threshold for passage to 50. In the split 50-50 Senate, Vice President Kamala Harris can break a tie, allowing Democrats to push past Republicans.

The topic was broached during a private Democratic Senate lunch session Tuesday as senators were growing exasperated with Republican Leader Mitch McConnell’s refusal to allow a simple vote on the debt limit. Instead, McConnell is forcing Democrats to undertake what they view as a cumbersome process taking days, if not weeks, that will eat into their agenda. 

With Republicans putting up hurdles to the vote, Democratic senators have been discussing a range of options — including a carve-out to the chamber’s filibuster rules. But invoking a filibuster rules change seems unlikely, in part because all Democratic senators would need to be on board. 

At his weekly press conference, Senate Majority Leader Chuck Schumer, D-N.Y., did not embrace — or reject — the idea of changing the filibuster for this one specific issue. 

Instead, Schumer simply repeated what he, Biden and others have said — that Republicans should ” get out of the way” and allow Democrats to pass the measure that’s already been approved and sent over from the House.

“The best way to get this done is for Republicans to just get out of the way,” Schumer said. He said the burden to stand aside is on McConnell’s shoulders. 

McConnell, though, wants to force Democrats to use the process he favors, which gives Republicans ample time to remind voters about the unpopular vote. 

“They’ve had plenty of time to execute the debt ceiling increase,” McConnell said about the Democrats. “They need to do this — and the sooner they get about it, the better.”

Once a routine matter, raising the debt limit has become politically treacherous over the past decade or more, used by Republicans, in particular, to rail against government spending and the rising debt load, now at $28 trillion.

The fact is, both parties have contributed to the debt and the nation has run a deficit most years for decades.

The filibuster has been up for debate all year, as Biden and his allies consider ways to work around GOP opposition to much of his agenda.

Biden has not backed earlier calls to end the filibuster for other topics — namely voting law changes. But Tuesday’s comments could signal a new phase.

At least one Democrat, Sen. Joe Manchin, D-W.Va., sounded resistant Tuesday. He and Sen. Kyrsten Sinema, D-Ariz., have raised objections to ending the filibuster on other topics this year.

A+
a-
  • default
  • GOP
  • In The News

    Health

    Voting

    Political News

    March 28, 2024
    by Dan McCue
    Elections Task Force Prosecutes 2020 ‘Vigilantes,’ Seeks More Civic Dialogue

    PHOENIX, Ariz. – A 46-year-old Ohio man has been sentenced to 30 months in prison for sending death threats to... Read More

    PHOENIX, Ariz. – A 46-year-old Ohio man has been sentenced to 30 months in prison for sending death threats to an Arizona election official. The sentencing of Joshua Russell, of Bucyrus, Ohio, came after he pleaded guilty to one count of making a threatening interstate communication.... Read More

    March 28, 2024
    by Dan McCue
    Vice President Harris Rolls Out First Government-Wide Policy to Mitigate AI Risks

    WASHINGTON — Vice President Kamala Harris on Wednesday rolled out the Biden administration’s first government-wide policy intended to mitigate the... Read More

    WASHINGTON — Vice President Kamala Harris on Wednesday rolled out the Biden administration’s first government-wide policy intended to mitigate the risks associated with artificial intelligence while still enabling its use to advance the public interest. The new policy, which is being issued through the White House... Read More

    March 27, 2024
    by Dan McCue
    New Dem Chair Kuster Announces Retirement Following 2024 Election

    CONCORD, N.H. — Rep. Annie Kuster, D-N.H., who, among other things, is the current chair of the New Democrat Coalition... Read More

    CONCORD, N.H. — Rep. Annie Kuster, D-N.H., who, among other things, is the current chair of the New Democrat Coalition in the House, revealed Wednesday that she will not seek reelection to Congress this year. In a lengthy statement released by her office, Kuster gives no... Read More

    March 25, 2024
    by Dan McCue
    CPAC Releases Ranking of Most Conservative Members of Congress

    WASHINGTON — The Conservative Political Action Conference, also known as CPAC, on Monday released its annual ranking of members of... Read More

    WASHINGTON — The Conservative Political Action Conference, also known as CPAC, on Monday released its annual ranking of members of the House and Senate based on their conservative bona fides or lack thereof. To produce this year’s scorecard, the CPAC foundation’s Center for Legislative Accountability analyzed... Read More

    March 22, 2024
    by Dan McCue
    After a Decade on Capitol Hill, Brad Howard Steps Out on His Own

    WASHINGTON — After a decade on Capitol Hill, most recently as chief of staff for former Rep. Stephanie Murphy, D-Fla.,... Read More

    WASHINGTON — After a decade on Capitol Hill, most recently as chief of staff for former Rep. Stephanie Murphy, D-Fla., and communications director of the Blue Dog Coalition, Brad Howard knew it was time for change. “It was time to move into the private sector,” he... Read More

    March 22, 2024
    by Dan McCue
    Greene Files Motion to Vacate Speaker’s Chair

    WASHINGTON — For the second time in five months, a member of the Republican Conference in the House has filed... Read More

    WASHINGTON — For the second time in five months, a member of the Republican Conference in the House has filed a motion to vacate the chair of the party’s speaker. But this time, Rep. Marjorie Taylor Greene, R-Ga., says the motion is intended merely as a... Read More

    News From The Well
    scroll top