Make Or Break Week In Washington.

May 22, 2023 Glen Turpening

With possible default looming next week Washington scrambles to avoid a default. (CNN)

America is heading close to the brink of a self-imposed economic disaster with the Republican-led House refusing to pay the country’s debts unless President Joe Biden agrees on cuts to current and future spending and new curbs on social programs. Unless a compromise to raise the government’s borrowing authority is reached within days, the US could lose its reputation as the stable anchor of the global economy. Millions of people could see retirement and veterans benefits put on hold once the government exhausted its ability to pay its debts due to the borrowing cap set by congress. A US default would reverberate through the financial market, likely triggering a recession that would cause serious job losses and shatter an already fragile sense of economic security for many families.

Analysis by Stephen Collinson, CNN

The Federal debt is at the crossroads of so many different competing interests in Washington from senior citizen’s healthcare to prison guards’ salaries to deficit hawks. Long term fixes to the debt ceiling remain elusive with the same competing interests zeroing and preventing any long term solutions to avoid looking like irresponsible glutinous federal money pigs. The United States is left looking weak in the world of finance on the World stage as so much of the global economy relies on the value of the dollar. This week will be interesting.