Trump says US might as well default on its $31 trillion debt ‘NOW’

Former President Donald Trump said the United States might as well pay $3.1 trillion in national debt “right now” as Congress has made no progress toward a resolution to extend the ceiling.

The Treasury Department has warned that the US has less than three weeks before running out of money to pay its bills by June 1, but Republicans and Democrats are still deadlocked in the negotiations.

House Speaker Kevin McCarthy, with the weight of House and Senate Republicans behind him, is pushing for a debt ceiling that will pass Congress with major cuts to unused COVID funds and other areas. Democrats are just as adamant that there should be a “clean” increase in the country’s borrowing limit, without any cuts.

At a New Hampshire town hall Wednesday night led by CNN’s Kaitlan Collins, Trump was asked about the ongoing deadlock in the debt ceiling.

Trump responded that a default will come if Republicans don’t get massive cuts they approved in late April in a debt ceiling extension package — which was dead on arrival in the Senate.

“We have to start paying off debt,” Trump said. “I say to the Republicans there — congressmen, senators — if they don’t give you massive cuts, you’re going to have to default.”

Trump attended a New Hampshire town hall led by CNN’s Kaitlan Collins on Wednesday evening

The former president went on to say he doesn’t believe Congress will allow a default because the Democrats will “wander”

“Because you don’t want that to happen, but it’s better than what we’re doing now, because we spend money like drunken sailors.”

When asked further to explain whether he believes the US should not pay its debts if a deal is not reached by June 1, he said the bankruptcy will eventually happen, so it might as well happen ‘now’ .

“Well, you might as well do it now because you’ll do it later because we need to save this country. Our country is dying. Our country is being destroyed by stupid people, by very stupid people,” Trump said.

CNN’s Collins asked the former president about his own flip-flop over debt ceiling negotiations.

When Trump was in power, he said the debt ceiling should not be used as a negotiating tactic on a spending deal. Under his leadership, Congress passed clean debt ceiling extensions three times.

“I can’t imagine anyone even thinking of using the debt ceiling as a bargaining wedge. That is a sacred element of our country,” he said in 2019.

Since then, however, Trump has changed his stance, urging Republicans to stick to their budget cuts proposal during ongoing talks.

“Why is it different now?” Collins insisted, to which Trump replied simply, “Because I’m not president right now.”

McCarthy, Senate Majority Leader Mitch McConnell, Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries met with President Joe Biden on Tuesday to discuss the debt limit, but the House GOP leader said no “new motion” was forthcoming. of the discussion.

McCarthy and Senate Majority Leader Mitch McConnell spoke at a press briefing after meeting with Biden, followed by Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries

McCarthy’s GOP members passed a bill in late April that would raise the debt limit by $1.5 trillion

McCarthy’s GOP members passed a bill in late April that would increase the debt limit by $1.5 trillion in exchange for saving $4.5 trillion by limiting spending in 2024 to fiscal year 2022 levels. It will also limit growth to 1 percent per year.

However, the bill was rejected by Schumer in the Senate because the Democrat-led body will not pass a package containing the massive cuts.

The White House had previously demanded a “clean” debt ceiling bill separate from any talk of austerity.

The president also said on Tuesday that he would consider using the 14th Amendment to raise the debt ceiling and would consider lowering COVID dollars to make a deal.

The congressional leaders also said Biden would meet with them again on Friday.