Rob Garver — McConnell’s Last Stand: He Wants Medicare, Social Security Cuts to Raise Debt Limit

In case anyone thought things couldn’t get more chaotic on Capitol Hill, Senate Majority Mitch McConnell appears ready to set them straight. McConnell, according to a report first published by CNN, plans to make several major demands of the White House, including changes to Medicare, Social Security, and EPA regulations as his price for raising the nation’s debt limit.

The report from CNN’s Manu Raju complicates the already fraught debate over whether and how to increase the Treasury Department’s ability to borrow the money it needs to pay the nation’s debts. Failure to allow additional borrowing would, at some point in early November, force the United States into default. U.S. government debt is viewed as the safest in the world – the closest thing there is to a risk-free asset. Allowing the government to default on its obligations would send shock waves throughout not just the U.S., but the global economy.

Are these guys in Putin and Xi's pocket? The Russians and Chinese must rolling on the floor laughing their asses off.

A US default would finish off US global hegemony. This is shooting yourself in the head rather than in the foot.

The Fiscal Times
McConnell’s Last Stand: He Wants Medicare, Social Security Cuts to Raise Debt Limit
Rob Garver
ht Warren Mosler at The Center of the Universe