'Reckless brinksmanship': McCarthy blamed for 'bizarre and inept' US credit downgrade
1 year, 4 months ago

'Reckless brinksmanship': McCarthy blamed for 'bizarre and inept' US credit downgrade

Raw Story  

On the evening of Monday, August 1st, 2023, FitchRatings lowered the United States' credit "default rating" from 'AAA' to 'AA+', which the agency stated, "reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to 'AA' and 'AAA' rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions." Lawmakers such as Senate Majority Leader Chuck Schumer and Representative Brendan Boyle also rebuked Fitch's decision and placed the blame "squarely on the shoulders" of House Speaker Kevin McCarthy. "The downgrade by Fitch shows that House Republicans' reckless brinksmanship and flirtation with default has negative consequences for the country," Schumer said in a statement. Boyle, the ranking Democrat on the House Budget Committee, directly implicated "Speaker McCarthy and the extreme MAGA Republicans who openly rooted for default" during the latest debt ceiling standoff this past spring.

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History of this topic

Column: A big credit rating agency just downgraded the U.S. Should you worry?
1 year, 4 months ago

Column: A big credit rating agency just downgraded the U.S. Should you worry?

LA Times  

Treasury Secretary Janet L. Yellen isn’t particularly happy about Fitch’s downgrading of the U.S. credit rating, but she isn’t especially concerned, either. “President Biden’s brinksmanship — not to mention the $10 trillion in new spending he and Washington Democrats passed over the past two years — pushed America’s credit rating off the ledge,” said House Ways and Means Committee Chair …

US credit rating downgraded over rising debt, ‘standards of governance’
1 year, 4 months ago

US credit rating downgraded over rising debt, ‘standards of governance’

Al Jazeera  

The downgrade marks only the second cut by a major rating agency in US history. Top rating agency Fitch has downgraded the United States’s credit rating over its rising debt and a “deterioration in standards of governance”, prompting protests from the White House. “The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, …

Fitch downgrades US debt on debt ceiling drama and governance worries
1 year, 4 months ago

Fitch downgrades US debt on debt ceiling drama and governance worries

CNN  

CNN — Fitch Ratings downgraded its US debt rating on Tuesday from the highest AAA rating to AA+, citing “a steady deterioration in standards of governance.” The downgrade comes after lawmakers negotiated up until the last minute on a debt ceiling deal earlier this year, risking the nation’s first default. Explaining its rationale for the downgrade, Fitch pointed to “the …

5 Takeaways From The Debt Ceiling Drama
1 year, 6 months ago

5 Takeaways From The Debt Ceiling Drama

Huff Post  

LOADING ERROR LOADING WASHINGTON ― President Joe Biden will sign the Fiscal Responsibility Act into law on Saturday, capping weeks of congressional drama with a surprisingly dull end to a standoff that risked a worldwide economic catastrophe. Both sides kept their word.” The painstaking negotiations that drove headlines in Washington for months revealed several things about Republicans, Democrats and Biden’s …

Explained: How 'odd pair', Joe Biden and Kevin McCarthy, helped avert US debt default
1 year, 6 months ago

Explained: How 'odd pair', Joe Biden and Kevin McCarthy, helped avert US debt default

Firstpost  

Like bomb squad technicians who just snipped the last wire on a ticking device, Joe Biden and top Republican Kevin McCarthy are breathing a sigh of relief after reaching a deal on the US debt ceiling. On 27 May 2023, Biden and McCarthy reached a debt ceiling deal to avert US default. Biden is a Democratic president running for re-election …

US debt deal passes House vote: How this is a big win for McCarthy
1 year, 6 months ago

US debt deal passes House vote: How this is a big win for McCarthy

Firstpost  

When the debt limit fight began, it was widely assumed that House Speaker Kevin McCarthy, untested and inexperienced in high-stakes negotiations, would either preside over an economically and politically calamitous government default or lose his hard-won post in a right-wing mutiny after caving to Democrats. With House approval Wednesday night of the debt-limit package he personally negotiated with President Joe …

The debt ceiling drama may feel like it’s over, but it may have only just begun
1 year, 6 months ago

The debt ceiling drama may feel like it’s over, but it may have only just begun

CNN  

New York CNN — President Joe Biden and House Speaker Kevin McCarthy finally reached an agreement to avert the United States’ first default on its debt — but you may want to hold your applause. Credit rating agencies could still downgrade US debt Even if the bill is passed in time to avoid a default, credit rating agencies could still …

Column: With debt ceiling deal, GOP reveals its only real goal was cruelty to the poor
1 year, 6 months ago

Column: With debt ceiling deal, GOP reveals its only real goal was cruelty to the poor

LA Times  

House Speaker Kevin McCarthy got very little for his threat to crash the U.S. economy by refusing to increase the debt ceiling. No one should be surprised that the resolution of our most moronic fiscal policy, the federal debt ceiling, involved our stupidest social policy, work requirements for assistance programs. In negotiations between the Biden White House and House Speaker …

US debt ceiling has catastrophic effects- 83 lakh job losses, world recession I EXPLAINED
1 year, 6 months ago

US debt ceiling has catastrophic effects- 83 lakh job losses, world recession I EXPLAINED

India TV News  

US Debt ceiling row: Amid the looming catastrophic recession, US President Joe Biden and House Speaker Kevin McCarthy are narrowing in on a two-year budget deal aiming to curb federal deficits in exchange for lifting the nation’s debt ceiling and staving off an economically devastating government default. White House estimates say a prolonged default could cause 8.3 million job losses …

‘Time’s up’: Deal on US debt ceiling close as default looms
1 year, 6 months ago

‘Time’s up’: Deal on US debt ceiling close as default looms

Al Jazeera  

A default could upend global financial markets and push the United States into a major recession. US President Joe Biden and top congressional Republican Kevin McCarthy are closing in on a deal that would raise the government’s $31.4 trillion debt ceiling for two years while capping spending on most programmes, news reports say. The potential agreement would increase funding for …

Threat of US credit downgrade looms over debt ceiling talks
1 year, 6 months ago

Threat of US credit downgrade looms over debt ceiling talks

Associated Press  

WASHINGTON — With one of three major rating agencies warning that America’s AAA credit is at risk, the stakes are growing in the standoff in Washington over raising the nation’s debt limit. But Yellen has warned that Treasury will likely run out of money to meet all its obligations as soon as June 1, which is being described as the …

Debt ceiling standoff 'not my fault,' says House Speaker Kevin McCarthy as White House warns of economic risks
1 year, 6 months ago

Debt ceiling standoff 'not my fault,' says House Speaker Kevin McCarthy as White House warns of economic risks

Firstpost  

A stubborn House Speaker Kevin McCarthy asserted that the debt ceiling crisis was “not my fault” on Wednesday as he dispatched Republican negotiators to the White House to wrap up negotiations. The White House blamed the Republicans led by McCarthy for risking a devastating default that would hit “every single part of the country” as they demand “extreme” spending cuts …

McCarthy says debt ceiling standoff ‘not my fault,’ as White House warns of economic risks
1 year, 6 months ago

McCarthy says debt ceiling standoff ‘not my fault,’ as White House warns of economic risks

Associated Press  

WASHINGTON — A defiant House Speaker Kevin McCarthy said Wednesday the debt ceiling standoff was “not my fault” as he sent Republican negotiators to the White House to finish out talks, but warned the two sides need more time as they try to reach a budget deal with President Joe Biden. The White House blamed the Republicans led by McCarthy …

Column: When Kevin McCarthy’s spending cuts get spelled out, even Republicans balk
1 year, 7 months ago

Column: When Kevin McCarthy’s spending cuts get spelled out, even Republicans balk

LA Times  

Whether you’re for the demand by House Republicans for deep spending cuts as a condition for raising the nation’s debt ceiling or you’re against it, there are some things you should know in assessing their gambit. Perhaps the single most important fact is this: While Speaker Kevin McCarthy likes to claim that his debt limit bill would break Democrats’ “addiction …

Joe Biden, House Speaker McCarthy fail to break the ice on debt ceiling deal
1 year, 7 months ago

Joe Biden, House Speaker McCarthy fail to break the ice on debt ceiling deal

India Today  

US President Joe Biden and House Speaker Kevin McCarthy could not reach an agreement on Monday on how to raise the US government's $31.4 trillion debt ceiling with just 10 days before a possible default that could sink the American economy, but vowed to keep talking. The Democratic president and the top congressional Republican have struggled to make a deal, …

What happens if US fails to resolve its debt ceiling crisis? All possibilities listed
1 year, 7 months ago

What happens if US fails to resolve its debt ceiling crisis? All possibilities listed

Hindustan Times  

In a crucial development amid the looming US debt crisis, President Joe Biden is set to meet with House Speaker Kevin McCarthy on Monday to negotiate a resolution. US President Joe Biden will meet with Republican House Speaker Kevin McCarthy on Monday for another round of talks on raising the US debt ceiling less than two weeks before a key …

Trump tells GOP no deal on debt ceiling unless 'they get everything they want'
1 year, 7 months ago

Trump tells GOP no deal on debt ceiling unless 'they get everything they want'

Raw Story  

Former President Donald Trump on Friday piled pressure on House Speaker Kevin McCarthy to default on the national debt and wreck the American economy unless Democrats cave and give Republicans "everything they want." In an all-caps Truth Social post, the former president laid out a stark choice for Republicans as they try to negotiate a way to raise the national …

This time, the debt ceiling crisis really could end in disaster
1 year, 7 months ago

This time, the debt ceiling crisis really could end in disaster

LA Times  

The last time the U.S. government went to the brink of defaulting on its debt — in 2011 — the stock market tumbled and there was something close to a panic across the economy before Washington came to its senses and cut a deal. And it doesn’t have to come to a full-fledged default for the government and millions of …

What happens if the US defaults on its debt?
1 year, 7 months ago

What happens if the US defaults on its debt?

Al Jazeera  

As a game of chicken plays out in Washington, DC, over whether to raise the limit on US government borrowing to avoid a default on its debt, the one thing that experts agree on is that a default would be catastrophic. As these cuts worked their way through the economy, “the hit to growth would be overwhelming,” Yaros and several …

Debt options abound, but can Biden, McCarthy strike a deal?
1 year, 7 months ago

Debt options abound, but can Biden, McCarthy strike a deal?

Associated Press  

WASHINGTON — The White House and Congress could strike a deal to raise the debt ceiling in exchange for budget cuts. As President Joe Biden meets Tuesday with House Speaker Kevin McCarthy and other congressional leaders for the first time over the debt ceiling crisis, the options for easing out of the standoff are many. More likely, Democratic president Biden …

The GOP has two plans to end debt ceiling crisis — and both are dangerous: columnist
1 year, 7 months ago

The GOP has two plans to end debt ceiling crisis — and both are dangerous: columnist

Raw Story  

House Republicans on Wednesday showed themselves to be unserious about resolving the debt ceiling crisis, and now they’re offering up two plans, both of which risk plunging the global economy into catastrophe, MSNBC Opinion Writer/Editor Hayes Brown writes. Brown notes that the budget House Speaker Kevin McCarthy pushed across the finish line Wednesday by the narrowest of margins calls for …

Kevin McCarthy to Wall Street: GOP will hold economy hostage to cut aid programs
1 year, 8 months ago

Kevin McCarthy to Wall Street: GOP will hold economy hostage to cut aid programs

Salon  

This article originally appeared at Common Dreams. U.S. House Speaker Kevin McCarthy told the New York Stock Exchange on Monday that his caucus will not pass legislation to raise the debt ceiling unless it includes steep federal spending cuts and work requirements for key aid programs, a position that Democratic lawmakers slammed as dangerous and foolish hostage-taking. "Speaker McCarthy went …

Column: On the debt-ceiling crisis, take it from moderate Republicans: Be afraid, be very afraid
1 year, 10 months ago

Column: On the debt-ceiling crisis, take it from moderate Republicans: Be afraid, be very afraid

LA Times  

House Speaker Kevin McCarthy knows better, but he is cynically engaging in radical, misleading brinksmanship over the debt ceiling limit. As one of the Concerned told me, “The base wants to blow everything up.” Given Republicans’ narrow House majority, just a few radicals can block any legislation that Leader-in-Name-Only Kevin McCarthy ultimately might agree to. Even as they call for …

Debt ceiling: 2011 showdown leaves lessons for Biden, GOP
1 year, 11 months ago

Debt ceiling: 2011 showdown leaves lessons for Biden, GOP

Associated Press  

WASHINGTON — The debate around raising the debt ceiling sounds eerily similar: Newly elected House Republicans, eager to confront the Democratic president in the White House, refused to raise the debt limit without cuts to federal spending. Negotiations over the debt ceiling consumed Washington in 2011, a high-stakes showdown between the Obama White House and the new generation of “tea …

Calmes: Only Republicans want to keep charade over debt limit
3 years, 3 months ago

Calmes: Only Republicans want to keep charade over debt limit

LA Times  

For all the nation’s problems — resurgent COVID-19, tragic weather extremes and the economic tolls of both — you’d think political leaders wouldn’t crash us into an easily avoidable crisis as well. Treasury Secretary Janet Yellen says Congress must raise the nation’s statutory borrowing limit by mid- to late October to meet the country’s obligations. Republicans, led by two of …

Debt default would 'permanently' weaken US, says Treasury Secretary Janet Yellen
3 years, 3 months ago

Debt default would 'permanently' weaken US, says Treasury Secretary Janet Yellen

India Today  

US Treasury Secretary Janet Yellen issued a fresh plea for Congress to raise the federal debt ceiling on Sunday, arguing a default on US debt would trigger a historic financial crisis. In a Wall Street Journal opinion piece, Yellen said that the crisis triggered by a default would compound the damage from the continuing coronavirus pandemic, roiling markets and plunging …

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