Negotiations over elevating the debt ceiling are persevering with in Washington D.C. A Friday assembly between President Biden and congressional leaders was postponed to provide staffers extra time to hash out a deal. They’re below stress although. A brand new CBO report tasks there’s a “important threat that sooner or later within the first two weeks of June” the U.S. might be unable to pay its payments.
Pushing the U.S. to the brink of default doesn’t must occur, in response to New York Occasions Opinion columnist Paul Krugman. “The debt ceiling is essentially loopy,” Krugman advised Yahoo Finance’s Seana Smith and Akiko Fujita. Krugman mentioned the debt combat will not be about spending or taxing, it is about “whether or not, for political causes, the occasion that controls one home of Congress can power the U.S. to renege on guarantees its already made.” Since Congress controls authorities spending and taxing, Krugman says the debt ceiling is “a loopy form of double jeopardy on authorities operations that is senseless in any respect.”
You’ll want to try the total interview, by which Krugman weighs in on the platinum coin and the April jobs report.
Key video moments
00:00:05 Why Krugman thinks the debt ceiling is “essentially loopy”
00:01:24 Learn how to preserve spending in verify with out the debt ceiling