Former President Donald Trump has sharply criticized the House GOP and ex-Speaker Kevin McCarthy regarding their decision to suspend the debt ceiling until January 1, 2025. In a recent post on Truth Social, Trump called McCarthy "a good man and a friend of mine," but condemned the vote as "one of the dumbest political decisions made in years." He specifically took aim at the bipartisan agreement passed by Congress, which received a 314-117 vote and was pivotal in averting a government default.

Trump described the debt ceiling extension as a political mistake, asserting that it was unnecessary and stating, "There was no reason to do it - NOTHING WAS GAINED, and we got nothing for it." He expressed concern that the responsibility of the debt would fall on Republicans in the future, noting that it is now "our problem," referring to the upcoming 2025 period. He ominously linked the situation with a potential economic depression, stating, "I call it '1929' because the Democrats don’t care what our Country may be forced into," a clear reference to the onset of the Great Depression.

The Fiscal Responsibility Act, passed earlier in the summer of 2023, had temporarily suspended the debt limit, allowing the government to function without immediate financial concerns. However, with the national debt currently exceeding $36 trillion, Treasury Secretary Janet Yellen has indicated that extraordinary measures may soon need to be enacted to prevent default.

In juxtaposition to Trump’s claims, several economists have suggested that even a near-default scenario could trigger severe repercussions for the economy. Yellen recently warned that the Treasury could reach its new borrowing limit between January 14 and January 23, necessitating immediate legislative action to protect the country’s fiscal integrity. An aide to Trump articulated the former president's stance, reiterating his desire for debt ceiling matters to be handled while President Biden is still in office, rather than postponing those issues until Republicans take over.

Trump’s criticism of the debt deal reflects broader dissatisfaction within segments of the Republican Party, particularly regarding fiscal policies and strategies imposed by the Democratic administration. Despite this, Democrats, including President Biden, assert that the stopgap spending bill signed in December ensured government stability at current funding levels while opposing the tax cuts that Trump and his allies championed.

As the political landscape shifts with Republicans set to control both chambers of Congress in early January 2024, the coming months could reveal the dynamics of how the debt ceiling will be addressed under renewed Republican leadership. As Trump stated repeatedly, he strongly prefers that these negotiations happen before he assumes the presidency again, fearing that failing to do so would allow Democrats to exploit the situation to their advantage.

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