American President-elect Donald Trump demanded that the Democratic Party eliminate the US national debt ceiling or significantly increase its level, as follows from the publication of the future head of state on the Truth Social social network.
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“Until the Democrats eliminate or substantially increase the debt ceiling, I will fight to the end. This is a vile trap set up by the Radical Left Democrats,” Trump wrote.
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According to the future president, Democrats want to “disgrace” Republicans in June when the next issue on the national debt is put to a vote in the summer.
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On Monday, the US Economic Policy Innovation Center (EPIC) released a forecast that the next government debt ceiling could be reached in June 2025, which will require the incoming Trump administration to push through Congress a new bill to raise the borrowing limit.
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“Raising the debt ceiling is not a good idea, but we would prefer to do it during the (U.S. President Joe) Biden administration. If Democrats won’t cooperate on the debt ceiling now, why does anyone think they will do it in June under our administration?” – Trump pointed out.
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He also linked the need to resolve the issue of national debt with the adoption by Congress of a temporary resolution on financing the American government, without which the United States faces a shutdown from January 20.
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“Republicans need to be smart and tough. If Democrats threaten to shut down the government until we give them everything they want, then call their bluff,” Trump added.
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Earlier in December, the country’s Office of Control and Budget (GAO) called on the US Congress to immediately repeal the statutory debt ceiling, tying the amount of borrowing to changes in government revenues and spending.
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As noted in the department’s report, due to the debt ceiling, the US government may find itself in a situation of default if Congress fails to once again promptly increase or suspend the borrowing limit.
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This, in turn, threatens to hit financial markets, deteriorate conditions for businesses and households, and have long-term negative consequences for the US and global economies.
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The US national debt as of December 19 is 36 trillion 189 billion dollars and continues to grow.
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According to the International Monetary Fund (IMF), the level of US government debt will reach 121% of US GDP by the end of 2024, and will reach 131.7% of GDP in 2029.
