Analysis-Debt ceiling: White House bets Republicans will blink under pressure

By Trevor Hunnicutt WASHINGTON (Reuters) - The White House is refusing to negotiate with hardline Republicans on raising the debt ceiling because it believes enough of

them will eventually back off their demands, as a growing chorus of investors, business groups and moderate conservatives warn of the dangers of edging towards a default.

The high-stakes deadlock is widely expected to last for months, and could come down to the last minute as each side tests the other ahead of June when the U.S. government

might be forced to default on paying its debt. As the White House calls for House of Representatives Republicans to lift the debt ceiling to avoid economic chaos, it plans

to highlight their threats to spending programs and the global economy, aides and allies of President Joe Biden say. "Leading congressional Republicans have themselves

admitted in the past that default would trigger an economic collapse, killing millions of jobs and decimating 401k plans," said White House spokesperson Andrew Bates told Reuters.

"But hardline MAGA Republicans are now advocating for this outcome." The U.S. government hit its $31.4 trillion borrowing limit on Thursday, a figure that reflects money

already spent by the government. House Republicans want cuts to government programs before they will approve a higher ceiling; a similar demand sparked a 2011 credit rating

downgrade and chaos in financial markets. But the White House's strategy has its risks, given the unpredictable nature of the hardline Republicans in the House, some

Democrats say.