Washington (agencies)
Yesterday, the White House announced that President Joe Biden will not negotiate with hard-line Republicans over their opposition to raising the debt ceiling in the United States.
“There will be no negotiations on the debt ceiling, we will not do that, it is their constitutional duty,” White House spokeswoman Karen Jean-Pierre told reporters, adding, “This should not be used as a political football.”
The Republicans’ refusal to agree to increase the borrowing ceiling threatens to disrupt the world’s largest economy, which could push the United States into default.
Treasury Secretary Janet Yellen said the government was actually close yesterday to the $31.4 trillion legal limit for borrowing, at which point accounting maneuvers will be resorted to to avoid a temporary default.
Experts consider that even with these maneuvers, the government will find itself again within months on the brink of the fiscal cliff, most likely around June.
A default would likely cause panic in financial markets, and thus in the global economy, at a time when the United States is trying to navigate a difficult post-Covid economic period without falling into a recession.
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