Treasury Secretary Scott Bessent is sounding the alarm, urging Congress to raise the debt ceiling by mid-July or risk the U.S. finding itself in a historic game of financial chicken come August.

With a national debt surpassing $36 trillion and Congress scheduled for a month-long recess in August, Bessent's warning serves as a stark reminder that failure to act could not only lead to a historic default but also trigger a domino effect that threatens both the U.S. financial system and its standing on the global stage. In a rare moment of bipartisan opportunity, the Republicans are eyeing a budget reconciliation package proposing a $4 trillion to $5 trillion increase—let's hope they can put down the political chicken wings long enough to make it happen.

Bessent's letter to Congress emphasizes the seriousness of the situation. He explains that there is a 'reasonable probability' the Treasury's cash and extraordinary measures will run out by August. He may as well have added, 22Pack your bags, we might be heading for a fiscal vacation!22 A vacation where no one can afford to buy a plane ticket or a hotel room, of course.

For those unfamiliar with the debt ceiling, it's essentially a cap set by Congress on how much money the government can borrow. It can be a useful tool to limit spending, much like a budget at a high-end restaurant where you suddenly realize your appetizer costs more than your entire dinner budget. Unfortunately, when that cap is reached, the government could default on its obligations, which Bessent claims would mark the first time in history this has happened.

Given that the last time the debt ceiling was addressed was in 2023, when it was temporarily suspended until January 2025 under the Fiscal Responsibility Act, one might wonder why we are back at the negotiating table so soon. It's almost as if Congress treats the debt ceiling like that one box you keep moving from room to room, always promising to deal with it later but never actually doing so.

Bessent's warning highlights the potential fallout from inaction. A default could cause severe repercussions for the financial system—making some people's stock portfolios drop faster than a lead balloon—and could also tarnish U.S. security and global leadership. Nothing says 'global leadership' quite like being the country that couldn't pay its bills.

The proposed increase in the debt ceiling comes at a time when financial markets are already uneasy, likely waiting for Wall Street to decide between celebrating good news or preparing for bad news while fidgeting nervously in their seats. Yet here we are, with a potential increase of up to $5 trillion looming like a large shadowy figure at a fiscal convention. Is it a friendly giant, or merely a looming payment deadline?

Bessent's concern about Congress's vacation plans might seem trivial, but how convenient is it to plan a recess just when the debt ceiling needs urgent attention? It almost feels like setting off on a road trip but forgetting to bring the car. 22Guys, we need gas to get there,22 you’d think someone would say, right?

To make matters more interesting, the national debt is exceeding $36 trillion, which is so astronomically high that it's beyond the range of most people’s imaginations. At this point, it’s just a number with a lot of zeros that could cause a meltdown at the next family dinner, especially if Uncle Bob starts talking about the Great Depression while everyone is still digesting the roast.

In the face of all this, the urgency for Congress to act becomes clear. As Bessent aptly stated, inaction could not only send shockwaves through the economy but could also lead to a loss of confidence in the U.S. government—now if that isn't a landmark achievement for 2023, I don't know what is. Perhaps Congress needs to start treating this debt ceiling like a bad cold; take some medicine and rest up instead of just pushing it off until it becomes a full-blown crisis.

So here’s to hoping that Congress can step up before they step away for Choco-Taco Tuesdays or whatever else they'll be doing during their recess. Then and only then, the economy might breathe easy. Until then, we’ll be waiting with bated breath, hoping that someone among the elected officials hasn’t forgotten their calculator.