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Why the U.S. Economy Could Crash This Summer

Joe Biden
President Joe Biden delivers remarks on the economy, Thursday, January 26, 2023, at Steamfitters Local 602 United Association Mechanical Trades School in Springfield, Virginia. (Official White House Photo by Hannah Foslien)

America is Going to Default This Summer – Speaker of the House Kevin McCarthy (R-CA) wants to have a confab with President Joe Biden to iron out the details of a possible deal to avoid a default on America’s titanic national debt level. McCarthy, who is by far the weakest Speaker the House has had in a century (after ceding many points of control to a handful of House Republican ideologues), is deluding himself if he believes that he can find an offramp for America before the House fails to raise the debt ceiling this summer. Biden’s team fundamentally understands that the various members of the House GOP are not on the same page either with each other or their leaders. 

What’s more, anyone with at least a few operational brain cells understands the stakes involved in the (non) negotiations of the debt ceiling: the very survival of America’s economy itself. And we’ve got little time to resolve the matter. Here again the polarization of American political culture is playing itself out in truly destructive ways. 

The Lunatic Fringe Rules Us

Radical elements of the Democratic Party—including President Biden—want to pass a ridiculous $6.8 trillion spending bill that will add even more to America’s supersized debt. The Republicans, meanwhile, are being dominated by a handful of extremists who refuse to negotiate at all with the Democrats unless severe cuts are made to vital social programs upon which countless Americans have come to rely.

McCarthy wants to meet with Biden and has been haranguing Biden to deal fairly with him. The White House understands that McCarthy is merely a figurehead. In this, McCarthy shares an unfortunate similarity with President Biden, who is himself merely a figurehead for a cabal of radical Left-wing ideologues who populate his administration and run it in the septuagenarian’s name. 

McCarthy has limited power and lacks the respect of most of his members to keep them in line. Negotiating with McCarthy, in the minds of the Democrats, would be useless because unless he gets all his members to support his negotiations, McCarthy could lose power; the precarious negotiations would be derailed—and then the Democrats would look bad going into the important 2024 presidential election.

Further, the Democrats have no incentive to sit down and negotiate about how to avoid a default on the national debt because most Democrats believe they won’t be blamed for the economic fallout from failing to raise the debt ceiling. The Democratic Party’s strategists who believe this are likely correct, too. 

After all, most Americans support a robust government (they want reform of government programs which is different from outright cuts). Seventy percent of Americans want Congress and Biden to compromise on the debt ceiling. They also don’t mind having the rich pay for these programs with higher taxes that are exclusively meant for the top wage-earners in the country. 

The Republicans are trying to do the right thing: lower the debt load and create a more sustainable, freer economy. Sadly, they’re doing it the wrong way. By having this nasty fight going into the presidential election, when the economy might totally collapse as a result of the Republicans using the debt ceiling as a cudgel to force cuts the Democrats (and most Americans) don’t support, will lead to ruin for the GOP. 

Calculating—and Courting—National Disaster for Political Gain

Most people believe that it is the Republicans, not Biden and the Democrats, who want to hold up the debt ceiling vote. Many do not realize the ramifications of this action. Not only will America default on its debt for the first time (which is embarrassing on its own), but the country will also be subjected to a massive devaluation of the US dollar globally; interest rates will skyrocket beyond the stratospheric levels they’re at already. 

Social programs that Americans depend upon will stop paying out in many cases. It won’t just be the government sector that’s impacted by this. Most major pension plans will be gutted by a default—meaning millions of ordinary, working Americans will lose much (possibly all) of their pensions overnight. 

Who does Kevin McCarthy think will be blamed for this? 

Look around at the country thus far. Look at how everything is falling apart and yet Biden has yet to be fully blamed. American voters have it in their minds that Democrats are the caring spenders and Republicans are the heartless misers who want to throw grandma off the cliff and throw poor people on the streets. Failing to raise the debt ceiling is, in the minds of most voters, a Republican initiative. 

The Biden Administration has no incentive to negotiate in good faith with the GOP. Biden wants the debt ceiling to not be raised to have the American people totally turn on the GOP going into 2024. Maybe the Republicans get lucky and the voters see Biden for what he is: an empty vessel for radical Left-wing interests. If history is any guide, enough voters will be so angered over the collapsing economy that they’ll blame the Republican Party and refuse to back the GOP candidate for president in 2024. 

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Not the Change We Need, But the Change We Deserve

Make no mistake, though, there will be no good faith negotiations between Democrats and Republicans to avoid a debt ceiling default. Both parties, for their own reasons, want the country to drive off the cliff. 

At this rate, if there were a rational third party that actually gave a damn about the well-being of this country rather than their own political fortunes, I’d encourage all Americans to vote for that party. It’s a shame that no such party exists. We’re stuck with the insane clown car posse on one side and the circular firing squad on the other. 

People wanted change. We’re about to get it in spades. And not for the better. Be careful what you wish for.

Brandon J. Weichert is a former Congressional staffer and geopolitical analyst who serves as a Senior Editor for Weichert is a contributor at The Washington Times, as well as a contributing editor at American Greatness and the Asia Times. He is the author of Winning Space: How America Remains a Superpower(Republic Book Publishers), The Shadow War: Iran’s Quest for Supremacy (March 28), and Biohacked: China’s Race to Control Life (May 16). Weichert can be followed via Twitter @WeTheBrandon.

Written By

Brandon J. Weichert is a former Congressional staffer and geopolitical analyst who recently became a writer for Weichert is a contributor at The Washington Times, as well as a contributing editor at American Greatness and the Asia Times. He is the author of Winning Space: How America Remains a Superpower (Republic Book Publishers), The Shadow War: Iran’s Quest for Supremacy (March 28), and Biohacked: China’s Race to Control Life (May 16). Weichert can be followed via Twitter @WeTheBrandon.



  1. T Plahte

    March 21, 2023 at 10:42 am

    If the U.S. economy does crash, it could create the opportunity for the Government to transition from using physical money to using digital money – Fed Coin(?).
    Coverting to digital dollars would not only eliminate the cost of printing dollars and stamping coins, it would also render the U.S Mint obsolete, which would reduce the size/overhead of Government.

  2. cobo

    March 21, 2023 at 10:46 am

    Unlikely, but…but if it happens rest of the world could either head straight for the hills or the pearly gates.

    The US dollar is getting stronger with each uptick in interest rates by the Fed causing serious inflation and unending market upheavals to erupt in distant lands.

    As a result, people become hungry and angry and furiously heading for US or europe where mystical pots of gold allegedly await their arrival.

    Meanwhile, wars and riots and street unrests become an everyday routine in poor nations.

    Only in countries with nuclear arsenals are the goverments and people still able to continue to feel secure.

    Awaiting US to start the desirous ww3. And end the global roller coaster powered by the US dollar and US casino economics.

  3. AngryVet

    March 22, 2023 at 6:48 am

    So you want to have your money tracked and could be shut off if they didn’t like what your buying by the U.S. Government? NO to digital dollars. Very dangerous.

  4. LibsRinos&Defeatistsuk!

    March 22, 2023 at 7:57 am

    Near the end of his article, Weichert actually said that American voters have it in their mind that Democrats are the caring spenders, and Republicans are the heartless misers who want to throw grandma off the cliff and throw poor people on the streets. That is extremely debatable, and absurd! Hey Weichert, poor people in our nation are already on the Streets in cities like New York, San Francisco, D.C., Baltimore, Newark and so on. Cities that are run by Democrats, by the way! And over the last two years, Groper Joe and his handlers have destroyed our energy independence in the name of the climate change boondoggle, while destroying President Trump’s strong immigration enforcement policies and allowing anyone to come in. The GOP, which is hardly perfect isn’t responsible for that mess!And the GOP is NOT responsible for the high rate of inflation either! As for the digital currency the treasonable elitist creeps out there want to shove down our throats and control us, good luck! Not everyone in our nation will bend over and take it. Before those creeps impose their tyranny on us, the nation will probably break apart. Texas, for example would become a Republic again. Patrick Henry once said Give me liberty or give me death and it still applies. Frankly Weichert, you practically sound like a defeatist which is just as bad as a woke plagued Biden supporter.

  5. Rick

    March 22, 2023 at 10:33 am

    When chickens learn to pee. Brandon is a far right lunatic.

  6. HAT451

    March 22, 2023 at 2:28 pm

    Currently the US connects 41 cents for every one dollar it spends. This means that 59% for every dollar is borrowed, with the debt levied on our children and grandchildren.

    All budgetary, i.e. funding, appropriations, and so on, are suppose to be initiated by the Congress of the United States. Article 2, Section 8 of the US Constitution specifies what the federal government’s is obligated are. Payments such veterans retirement and social security are protected by established law. What is not protected, is are the budgetary items such as special interests, grants, or pork for politicians to buy their “yea” vote, new and underfunded (and in some cased funded) programs not listed in Article 2, Section 8.

    Much of what was in the budget what rammed by the 2016 senate and congressional legislators after the 2018 election, but before the newly elected members took their oath of office, items that were suppose to be one time expenditures. Now the Senate and Executive branch expect the Congress to increase our 30+ trillion debt ceiling.

    True recklessness is the borrowing, pork, and prolific spending. We are currently experiencing the effect of that via inflation and rapidly raising interest rates. What Speaker McCarthy is demonstrating is true political courage, by putting a check on borrowing, by not giving authorizing a blank check. This one action, will force the Senate and Executive branch to something they have not done in recent memory, prioritize their spending.

    Those on the gravy train, i.e. recipients of the federal monies and pork, are not happy, hence outrage of not raising the debt ceiling. By not compromising on the debt ceiling, it remains the same. Personally, the best outcome would be to lower the debt ceiling to say 29 trillion.

  7. Craig B

    March 22, 2023 at 10:06 pm

    This article seems to miss some key points. One would be the assumption that it is possible for a “caring” reduction in spending.

    The vital programs Americans like and depend on are at the root of the debt problem and they are designed to grow exponentially over time.

    If the author thinks some mythical third party has any chance of making a difference if they are unwilling to make painful cuts to those cherished programs this entire debate is meaningless.

    We can raise the debt ceiling now but we are only delaying an inevitable default down the road when this systemic growth in spending ruins us.

  8. Deplorab_AL

    March 23, 2023 at 7:07 am

    This author hasn’t a clue. McCarthy is actually standing up and keeping his promises. He isn’t as weak kneed as he seemed prior to the great 20 who forced him to become strong.

    There is no more time for compromise on the debt ceiling. Between the the debt and fed’s balance sheet changes have to happen now. There are no more easy decisions.

    The revenue coming into the treasury will cover the debt service, Medicare and Social Security. Everything else is discretionary and up for discussion

  9. William Buckley

    March 29, 2023 at 10:02 pm

    Brandon have you ever considered getting an college education?

  10. len

    April 3, 2023 at 8:19 am

    Seems to me that both parties are like a pot calling the kettle black, over the debt ceiling limit. Threatening to close down the government has become an old hat threat by our two illustrious political parties.

    Threatening Social programs and major pension plans if the debt ceiling is not met is a great political ploy to get the people to the polls to vote for their favorite party candidates for more of their poor judgment(s).

    Rest assured someone will buckle, and make a last minute agreement and become a national hero. Sounds like an opportunity for some self serving politician to deliver. another kick the can down the road solution.

    Hold your breath!

  11. Carl D Riley

    April 29, 2023 at 2:52 pm

    First of all social security is a paid for program by working American’s and if the government had not changed the rules to be able to borrow money from it, there would be plenty of money in it even at modest interest on the money it had. I am on social security and it angers me when I hear people say it is an entitlement program, it is not and it is not paid for by the government, it is paid for by the hard working people.

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