Rep. Himes: US default would impact global economy
If Congress does not raise the debt limit by June 1, Rep. Jim Himes says the price of everything would increase.
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As the debt ceiling negations continue, Rep. Jim Himes tells News 12 Connecticut that the U.S. defaulting would have a catastrophic impact both home and aboard.
If Congress does not raise the debt limit by June 1, Himes says the price of everything would increase.
This would include all loans, as well as mortgage and borrowing rates. The country would not be able to make payments to the Treasury Dept., Social Security and Medicare.
Himes says the global economy and capital markets also run off of the premise that the U.S will not default.
Due to the ongoing discussions, President Joe Biden shortened his trip to Asia. As a result, Himes tells News 12 he believes China and Russia see both the U.S and democracy as weak.
He is advocating to get rid of the legal limit on the debt ceiling and advises his colleagues to be fiscally responsible.
"My Republican friends often try to draw the analogy to a family. You know, if a family spends too much they eventually live by the budget. Here's what family doesn't do. A family for two kids, mom and dad don't go to a restaurant order a $100 of French wine, desserts and four courses, you know, have a great meal and extravagant meal and at the end when the bill comes, says should we pay the bill or not?" Himes says.
Himes is hopeful a deal with be reached but says it would be a shame if one is not reached.
