The US Is Flirting With Financial Calamity: What You Need To Know

The NPR Politics Podcast

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News, Daily News, Politics

4.4 • 25.7K Ratings

🗓️ 9 May 2023

⏱️ 18 minutes

🔗️ Recording | iTunes | RSS

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Summary

Congress has long directed the government to spend more money than it collects in taxes. That means the government has to borrow money to meets its obligations, which it does by selling Treasury securities.

Treasury securities are a promise from the government that you if give it money now, it will pay you back with interest later. They have long been considered among the safest investments in the world.

But now, the U.S. is flirting with not paying its bills by refusing to increase the amount of money that the government is legally allowed to borrow — its "debt ceiling."

We explain the basics of how the system works and what the consequences might be if the ceiling is not raised and the government runs out of money.

Previously on the podcast: Much Ado About Debt, Jan. 18

This episode: White House correspondent Tamara Keith and political correspondent Kelsey Snell.

The podcast is produced by Elena Moore and Casey Morell. Our editor is Eric McDaniel. Our executive producer is Muthoni Muturi.

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Transcript

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0:00.0	Hi, this is Nadia, a recent college grad hiking through Europe. Currently, I am trekking my way
0:06.4	through the heart of Switzerland. This podcast was recorded at 116 pm on Tuesday, May 9, 2023.
0:16.0	Things may have changed by the time you hear this, but chances are, I will still be walking.
0:21.1	All right, y'all, here's the show.
0:22.7	Damn, you and I are hiking our way through mountains of debt and she's hiking her way through
0:31.4	actual mountain. Yeah, she is leaving. She is living her best life and we're just barely getting
0:37.8	bothered. Just here. Hey there, it's the NPR Politics podcast. I'm Tamer Keith. I cover the
0:42.9	White House. And I'm Kelsey Snalek, I cover politics. The US is on the precipice of potential economic
0:49.6	calamity. The debt that took 230 years to accumulate overall, overall, unless we do what they say.
0:57.2	They say they're going to default unless I agree to all these wacko notions they have.
1:01.8	If Washington wants to spend more, it will have to come together, find savings elsewhere,
1:09.5	just like every single household in America. America will not default on our debts unless President
1:16.7	Biden chooses to do so to ensure Americans does not default on our debts. The House Freedom Caucus
1:22.6	is offering a responsible solution to the self-imposed crisis. Even coming close to the debt ceiling
1:29.6	without raising it will raise borrowing costs for American households and businesses for a good
1:37.0	long time. That was President Biden, Speaker of the House, Kevin McCarthy, Pennsylvania Republican
1:42.6	Representative Scott Perry and Treasury Secretary Janet Yellen. And we are talking about the debt
1:49.0	ceiling, a legal provision that says the United States can only borrow so much money.
1:54.9	But we've been here before, like in 2011. We don't have time for games. We don't have time for
2:03.6	trying to score political points or maneuvering or positioning. Not on this. We've made clear
2:11.2	that we're fighting for the largest spending cuts possible. We're talking about real spending cuts
2:16.4	here. No smoke and mirrors. It is a plan to give our children a debt-free nation so they too can
	...

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