Countdown to U.S. government shutdown: 1 day left. Trump advocates for complete cancellation of federal debt ceiling

The new US President Trump recently expressed strong opposition to a proposal to make short-term grants to the government, resulting in the current Biden administration may shut down again due to lack of funds. Why is Trump doing this? (Wall Street Journal: Trump considers slashing or repealing banking regulators, encryption regulation expected to be relaxed across the board? (Background supplement: Fed microphone: Fed ultra-low Intrerest Rate era ends, Trump grasps the key to 2025 interest rate cuts) In response to the Biden administration's current shutdown crisis due to insufficient funding, congressional negotiators proposed a short-term appropriation package on December 17 to fund the government until March next year to avoid a government shutdown. However, the new US President Trump disagreed with the proposal, which Trump explicitly opposed on December 18 and threatened to expel his Republican colleagues if he did not accept his demands, increasing the possibility of a government shutdown later this week. At the same time, Trump and new Vice President Vance also jointly issued a statement saying: This bill's concessions to the Democratic Party are a betrayal of the country, and Republicans should remain smart and tough. Pass a streamlined bill instead of giving the Democrats everything they want... Bloomberg said that if the appropriations bill fails, the US government may partially shut down as early as December 21, local time; But if passed, the next funding battle will continue until mid-March next year, when the newly elected Congress will pass more permanent appropriations. Why is Trump ignoring the government shutdown? Trump's move may make many people confused, people may ask, Trump is about to officially announce his inauguration on January 20 next year, as the new US president, what is the current government shutdown for him? In fact, Trump's real reason for opposing the bill may be that he wants to solve the long-standing problem of the US government's "debt ceiling". According to Trump, if Democrats want to keep the Biden administration running, they must add a bill to the bill to abolish the US government's "debt ceiling". Trump said: If Democrats want to lift the debt ceiling, he will be at the forefront of support. The consequences of breaching the debt ceiling are uncertain and can range from catastrophic to irrelevant... Trump may see the debt ceiling deadline as a trap set by Democrats and want to embarrass Republicans when he takes office in the future. Therefore, he may want to take this opportunity to abolish the debt ceiling directly, so that he will not have to worry about it when he takes office. What is the US government's "debt ceiling"? The debt ceiling is the maximum amount of debt the United States has set for the federal government to meet the payment obligations it has incurred, and is currently set at $31.4 trillion. In December 2022, the U.S. Treasury Department warned Congress that the U.S. debt was approaching the debt ceiling at that time, and after more than half a year of fighting between Republicans and Democrats, President Biden only signed a bill on June 3, 2023, extending the time for the debt ceiling to take effect until early 2025, temporarily avoiding the U.S. government's debt default crisis. At present, the total debt of the US government has reached $36.2 trillion, and if the current bipartisan vote in Congress does not agree to extend the effective date of the debt ceiling, then by the beginning of next year, the US government will really fall into default. For Trump, who is about to take office in January next year, and the long-term fiscal deficit policy of the US government is close to getting out of control, Trump may not be willing to step on the brakes during his term, and the best way is to quickly solve the problem now and abolish the debt ceiling rule, lest the Democratic Party use it as a bargaining chip in his term of office to create trouble for the Republican Party and Trump. Will the shutdown bring down the economy? It is worth noting that next week the United States will usher in the most important holiday of the year, Christmas, if the government does shut down during this period, all aspects of residents' lives will be affected, and the direct economic losses will probably be calculated in billions of dollars. But we may not have to worry too much, in fact, the US government shutdown is not new, since 1976 the US government has been shut down more than 20 times, but none of them have caused a major financial crisis. At the same time, observing the four shutdowns after 2000, in addition to the decline in the stock market before the shutdown, it is determined that after the shutdown, they have bucked the trend, so whether the US government is closed or not, it may have a limited impact on the stock market. The dollar is strong According to TradingView data, the US dollar has recently been affected by the US Federal Reserve's slowdown in the expectation of interest rate cuts next year, and the dollar index is currently at 108.272, rising 1.63% in the past 1 week. Dollar Index. Source: TradingView Related reports U.S. debt ten-year Intrerest Raterise broke 4.5%! New debt king: Trump will not buy BTC before taking office The Trump family will increase the position Decentralized Finance! Buy ONDO, AAVE, ENAToken, position exceeded 80 million magnesium Arthur Hayes: The encryption market is expected to be in 1/20 big dump, Trump will use the depreciation of the dollar to boost the U.S. economy "1 day down to the US government shutdown" Trump advocates: completely cancel the federal debt ceiling" This article was first published in BlockTempo "Dynamic Trend - The Most Influential Block Chain News Media".