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“No, I can’t.” US President Joe Biden responded when asked today about whether he can guarantee that the United States reaches the debt ceiling, with a deadline of October 18 and that is the main issue of dispute between Republicans and Democrats.
An announced debt. US President Joe Biden called on Republicans to clear the way for Democrats to suspend the nation’s debt limit to prevent the government from approaching a credit default and held accountable for the consequences. Senate Republican Minority Leader Mitch McConnell.
Biden accused the Republican opposition of acting “irresponsible” and “dangerous” by refusing to raise the debt ceiling, which has an October 18 deadline to increase the nation’s debt ceiling, which remains at 22 trillion dollars to the actual figure of $ 28.4 trillion.
Biden, when asked by journalists about whether he could raise the debt by that date, answered bluntly: “No, I can’t. That depends on Mitch McConnell (the Republican leader in the Senate)”, although he admitted that he does not want to “believe that that it will be the result, because the consequences would be too serious. ” McConnell responded that Republicans gave Democrats a roadmap for dealing with the roof for months.
President Biden argues that he will support the new debt ceiling by increasing taxes on large corporations and the wealthy, or people who earn more than $ 400,000 a year. “They (Republicans) are threatening to use their power to stop us from doing our job, which is to save the economy from a catastrophic event. I think that’s downright hypocritical, dangerous and regrettable,” Biden said.
The world economy depends on the stability of the United States Treasury notes. A default on that debt would seriously affect financial markets and could lead to an unprecedented recession in the US economy.
Congress has until October 18 to raise the debt ceiling and avoid US defaults. There is no agreement yet between Democrats and Republicans. Yes cross accusations. The White House Says Conservatives Spent Like “Drunken Sailors” These Years https://t.co/5Ty09xIiJH
– Dori Toribio (@DoriToribio) October 4, 2021
The president ruled that failure to raise the debt ceiling “would threaten the status of the dollar as the reserve currency on which the world depends,” and that the US solvency score would be lowered, as well as the increase in “Interest rates for mortgages, car loans, or credit cards.”
Earlier, Treasury Secretary Janet Yellen warned lawmakers that if the debt limit is not raised in mid-October, the government will likely not be able to pay its expenses, something that would have serious consequences on the US economy and its economy. global impact. “It is imperative that Congress address the debt limit … It is necessary to avoid a catastrophic event for our economy,” Yellen warned in late September.
“Congress is now really under pressure to get this bill passed, put it on the president’s desk, and make sure there is no default on the nation’s debt on credit,” said Associated Press correspondent Lisa Mascaro. . Chuck Schumer, Senate Majority Leader, warned that approaching the deadline would be dangerous for the economy.
What is the debt ceiling?
The debt ceiling legislation allows the Government to request credits or bonds at the fixed amount. In history, the amount has increased many times, mainly when the Government requires money to finance its operations and programs. In 2019 the amount was located at 22 trillion dollars, but currently the country’s debt amounts to 28.4 trillion dollars.
In 2011 the country came close to resorting to defaulting on its debt when the president was Barack Obama. The event unleashed chaos in the financial markets and led Standard & Poor’s to downgrade the country’s solvency note.
With EFE and AP
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