Trump expresses dissatisfaction with Biden's extension of the U.S. debt ceiling in 2023

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Donald Trump sharply criticized Joe Biden and his administration's handling of the U.S. debt ceiling last year. In a program on 'Truth Social,' Trump called the decision to extend the debt ceiling 'one of the dumbest political moves in years.'

According to him, Biden threw an economic grenade at the Republicans, turning what should have been Biden's disaster into a Republican mess.

Trump wrote: 'There is no reason to do this - nothing was gained.' He claimed that Democrats are acting recklessly, stating they would rather see a great depression than hurt the Republicans. 'I call it '1929',' the president added, comparing the Democrats' financial management to the Great Depression.

Biden's 2023 budget agreement and its implications

The 2023 Fiscal Responsibility Act postponed the debt ceiling until January 1, 2025. On the surface, this seems to be a breather for the U.S. Treasury, giving it some time to repay the debt. But timing is crucial.

Reports indicate that Treasury Secretary Yellen recently confirmed that the U.S. will reach a new borrowing limit between January 14 and January 23, 2025. After that, the government will have to take extraordinary measures to avoid default.

Let's analyze this. The debt ceiling is the total amount of money the government can borrow to pay for things like Social Security, Medicare, military salaries, and interest on national debt. Once this limit is reached, the Treasury cannot issue new debt, and the government essentially goes bankrupt.

Programs like Medicare, tax refunds, and military operations could face significant cuts. Without the 2023 extension, the U.S. would face its first-ever debt default, causing chaos in global markets.

Even so, Trump remains unconcerned. He believes the Republicans were played, left with no leverage to clean up Biden's mess. 'This is Biden's problem, not ours,' he wrote.

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