Your Wednesday Briefing The New York Times

US Treasury Secretary Janet Yellen has warned US lawmakers of “catastrophic” consequences. E.

His warning came after the worst trading day since May. The S&P 500 fell 2 percent and government bond yields rose to their highest since June, reflecting expectations that the Fed will slow bond buying as prices rise and the economy recovers. .

Senate Republicans blocked an emergency spending bill to fund the government on Monday and lifted the debt limit in early December. Democrats can unilaterally raise the debt ceiling using an accelerated process known as reconciliation that protects tax laws from filibusters, but so far they’ve found the option complicated and time-consuming. It doesn’t matter.

Impact: “This will hurt the US economy, global financial markets and the millions of families and workers whose financial security will be compromised by late payments,” Yellen said. He suggested that a default could also jeopardize the dollar’s status as an international reserve currency.

Analysis: As Clay Risen writes in Our Bulletin on Politics, the current battle to raise the debt ceiling is another lesson in America’s political dysfunction.

Brexit crisis
For months, the UK’s pandemic economic shutdown helped cover up the way Brexit disrupted trade. The disguise came last weekend when gas stations across the country ran out of gas, causing panic and long lines of drivers waiting for pumps.

A shortage of truckers exacerbated by Brexit has contributed to the shortage. Of the estimated 100,000 truck driver shortage, around 20,000 are non-British drivers who left the UK during the pandemic and now face tougher post-Brexit visa requirements. The government hopes to address the shortfall with 5,000 three-month visas for foreign drivers.

However, Brexit has featured little in the public debate – which in part reflects the calm nature of the debate over Britain’s exit from the European Union, after years of struggling with even the most passionate opponents of Brexit in 2016. Referendums show little taste Brexiters always find other causes for bad news, including the pandemic.

Throughout the broadcaster: When asked about the crisis, Olaf Scholz, chairman of Germany’s SPD, said on Monday: “We are working very hard to convince the UK not to leave the union.” “Now you have made a different decision and I look forward to addressing the issues that come with it.”

Analysis: “They have a business model based on hiring workers from other countries,” said David Henig, a trade policy expert. “Suddenly you have reduced your job market eight times. Brexit has an impact on business models that have not had time to adapt. ”

Explanation: Here’s what you need to know about the UK’s gas shortage.

The German Conservative Party separates
The defeat of the Christian Democratic Union in Germany threw the party into disarray and raised concerns about the long-term viability of the conservative movement. Nearly two million voters left the party on Sunday in favor of the Social Democrats, coinciding with Angela Merkel’s tenure as Chancellor.

“It raises questions about our identity,” said Norbert Rotgen, a high-ranking member of the CDU. “After all, the only major people’s party in Germany. And if this continues, we won’t anymore. ”

The scattered election results are difficult to explain, especially since the previous government was made up of traditional centre-right and centre-left parties. But it points to a more fragmented society that marks the definitive end of a long era of traditional political labeling, as well as the traditional German Vox party leading the “people’s party”.

Merkel: Many of the party’s difficulties are masked by Merkel’s own popularity and appeal, which transcends traditional conservative voters and allows her party members to avoid changing the identity of German voters.

Coalition talks: While conservative candidate Armin Laske continues to insist on negotiating a majority coalition with the Greens and Free Democrats, many in his camp have given up. One of his most important domestic political rivals has congratulated the Social Democrats’ Olaf Scholz on the election results.