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Cryptopolitan 2024-12-19 18:03:44

President Trump calls on Congress to abolish US debt ceiling

President Trump calls on Congress to abolish US debt ceiling

President Donald Trump has called on Congress to abolish the U.S. debt ceiling entirely, describing it as a meaningless psychological tool that serves no practical purpose. In a recent interview , Trump made it clear he’s ready to “lead the charge” if lawmakers agree to eliminate the borrowing limit, which currently caps how much money the federal government can borrow to pay its bills. “The Democrats want to get rid of it. If they want to get rid of it, I would lead the charge,” Trump reportedly said. He dismissed the debt ceiling as an outdated concept, suggesting that even experts aren’t sure whether breaching it would result in catastrophe or prove inconsequential. “It doesn’t mean anything, except psychologically,” he said. The comments come amid rising tensions over a potential government shutdown, which could occur Saturday at midnight if lawmakers fail to pass a funding deal. Trump criticized the current negotiations, calling a bipartisan agreement to avoid a shutdown a “Democrat trap” and taking aim at House Speaker Mike Johnson for what he described as an unacceptable resolution. $36 trillion in national debt and counting The United States is facing an unprecedented national debt crisis, with total federal debt now exceeding $36 trillion as of December 2024. Publicly held debt makes up $29 trillion of that figure, or 99% of the nation’s gross domestic product (GDP). Projections show the debt-to-GDP ratio could pass 100% in 2025 and may hit 172% by 2054 if nothing changes. This year alone, interest payments on the debt have skyrocketed by 34%, reaching $882 billion—more than the federal government spends on defense, Medicaid, or children’s programs. Meanwhile, the annual federal deficit is stuck at $1.9 trillion, mirroring last year’s figure. Government spending continues to outpace revenue, thanks to a combination of tax cuts and high borrowing costs. With the federal funds rate at its highest level in decades, the cost of financing the debt has surged, raising alarm bells among economists about long-term sustainability. Trump’s stance on the debt ceiling comes against this backdrop of growing fiscal uncertainty. While Congress suspended the debt limit through January 2025 in a deal reached last year, the president argued the measure only delays inevitable fights over borrowing authority. He revealed he had discussed his concerns with Elon Musk before the billionaire took to X (formerly Twitter) to share similar views on government spending. “I told him if he agrees with me, he could put out a statement,” Trump said. He described Musk’s perspective as aligned with his own, particularly on cost concerns. Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap

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