Negotiations over raising the debt limit continue on Capitol Hill with just days to go before the country runs out of money.
House Speaker Kevin McCarthy (R-CA) sounded confident Tuesday that lawmakers are close to striking a deal. “We can still finish this by June first,” McCarthy told reporters.
Privately McCarthy reportedly conceded to his Republican members that they are “nowhere near a deal yet.”
The White House is insisting talks have been productive.
“Look, if everyone is working in good faith, and recognizes that no one is going to get, either side is going to get exactly what they want, we’ll get it done,” said White House Press Secretary Karine Jean Pierre.
Republicans are calling on President Biden and Democrats to cut spending to pre-2022 levels, streamline oil and gas projects, and impose new work requirements for those receiving federal government aid.
Biden wants to retain current spending levels and raise taxes for the wealthiest Americans and large corporations.
“I’m just gonna say that there is a significant gap between where we are and where they are on finances,” said Rep. Garret Graves (R-LA).
A default would reportedly send shockwaves through the global economy and financial markets. Experts say the U.S. economy could fall into recession with millions losing their jobs and Social Security.
It would also affect the national defense as members of the U.S. military would not be paid.
The heads of the military’s Joint Chiefs warn that a default would have an “immediate and dramatic impact on readiness.”
“The potential here could be catastrophic for us, and I don’t say that lightly,” said Adm. Mike Gilday, Chief of Naval Operations.
Americans are on edge.
“It’s very stressful,” said Fred Gurner. “Give me a heart attack.”
Lynda Fisher commented,n”I paid into Social Security, and I paid into Medicare. And now they’re trying to take it away… it’s not their money.”
“We’re playing Russian roulette with the United States’ credit,” said Jeff Tomasulo, founder and CEO of Vespula Capital Management and Tactical Income.
CBN News Chief Political Analyst David Brody predicts the two sides will probably reach a deal in time, but the political brinkmanship is bad for the country.
“I think they’ll meet somewhere in the middle,” Brody said on Tuesday’s 700 Club. “And even if they don’t, the bottom line is Republicans, I think, have the victory here.”
“Democrats have all the pressure to settle this thing because they control the levers of government in the important Senate and obviously the presidency, so this is a win for Republicans, but either way it’s not a win for the country,” added Brody.
Negotiators are expected to convene again Wednesday for another round of talks as the clock ticks closer to that June 1 deadline.