The U.S. debt limit debate has been reignited recently as Republicans are pushing to repeal the mandates on green energy and climate change of the Biden administration's Inflation Reduction Act in exchange for raising the country's debt ceiling. Republican's led by House Speaker Kevin McCarthy has stated the repeals would “end the green giveaways for companies that distort the market and waste taxpayers’ money”. Congressman Andy Ogles (R-TN) had also introduced legislation early this year to repeal this act as "it has nothing to do with inflation and everything to do with climate alarmism and feeding cash into the climate industry," while President Biden condemned this repeal, stating that it would lead to “doing nothing about the increasing ferocity of natural disasters and taking away clean-energy jobs.”

Thus, it is highly crucial to decide whether to raise the debt limit or not because if the U.S. fails to make its debt payments by the end of the summer, it may default on its obligations with private investors, foreign businesses, and other nation-states. According to ECB President Christine Lagarde, it would be a “major disaster” whereas Treasury Secretary Janet Yellen said it would be “devastating” for American banks. At this point, the United States has accumulated more than $31 trillion in debt. In the end, it is to be seen whether these politicians can come to a mutual agreement while taking into consideration the long-term effects that might come out of it.



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