Biden Says He ‘Can’t’ Guarantee US Won’t Default on Debt

On Monday, President Joe Biden fired one other salvo in an ongoing sport of monetary rooster between his administration and congressional Republicans, saying he couldn’t assure the US won’t attain the debt ceiling.

“I can’t consider that might be finish outcome as a result of the consequence is so dire,” Biden mentioned to reporters following a White Home speech on the difficulty, based on Politico. “I don’t consider that. However can I assure it? If I might, I might, however I can’t.”

Final week, Treasury Secretary Janet Yellen warned lawmakers that Congress has till Oct. 18 to boost or droop the debt ceiling earlier than the U.S. will possible start to default on its debt for the primary time ever.

Republicans, led by Minority Chief Mitch McConnell, have mentioned they gained’t vote to boost the debt ceiling, saying that doing so will promote extra authorities spending.

In a Monday morning letter to Biden, McConnell prodded the president to speak his social gathering into elevating the debt restrict with none Republican help, a typical tactic by the out-of-power social gathering with regards to the difficulty of elevating the debt ceiling.

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“I respectfully submit that it’s time so that you can interact immediately with congressional Democrats on this matter,” McConnell wrote within the letter, which Biden indicated he had learn. “Your lieutenants in Congress should perceive that you do not need your unified Democratic authorities to sleepwalk towards an avoidable disaster once they have practically three months’ discover to do their jobs.”

Republicans have threatened to filibuster any try by Senate Democrats to cross a easy invoice to extend the nation’s capability to borrow extra money.

Get together leaders wish to pressure Democrats to boost the restrict on their very own by way of the finances reconciliation course of that bypasses a Republican filibuster, however that isn’t a sensible choice, given such a course of might take weeks to come back to fruition.

Within the letter, McConnell introduced up Biden’s previous opposition to debt will increase whereas within the minority.

Do you consider the Republicans are doing the correct factor with regard to the nationwide debt?

“The President’s social gathering needed to take accountability for a coverage agenda which you opposed,” he wrote. “Your view then is our view now.”

Biden put the onus on the deadlock on the ft of the GOP and solid Democrats because the potential saviors of the nation.

“Republicans say they won’t do their half to keep away from this useless calamity,” Biden mentioned in his speech. “So be it. However they should cease taking part in Russian roulette with the U.S. financial system.

“Let the Democrats vote to boost the debt ceiling this week, with out obstruction or additional delays.”

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That theme was continued all through the president’s 18 minute look.

“What they’re doing at this time is so reckless and harmful for my part,” he mentioned. “Not solely are Republicans refusing to do their job. They’re threatening to abuse the ability, their energy, to stop us from doing our job — saving the financial system from a catastrophic occasion.”

“I believe, fairly frankly, it’s hypocritical, harmful and disgraceful. Their obstruction and irresponsibility is aware of completely no bounds,” he added.

Even earlier than the debt ceiling restrict is reached later this month, Biden mentioned the implications of the continued standoff might be dire.

“Within the days forward, even earlier than the default date, individuals might even see the worth of their retirement accounts shrink. They might see rates of interest go up, which is able to finally elevate their mortgage funds and automobile funds, and… your financial savings in your pocketbook might be immediately impacted by this Republican stunt,” he mentioned. “It’s so simple as that.”

The standard knowledge is that failure to extend or droop the debt ceiling would roil monetary markets and imperil the U.S. financial system’s nascent restoration from the COVID-19 downturn.

When the ceiling is reached, the U.S. Treasury Division can’t subject any extra Treasury payments, bonds or notes. It might solely pay payments because it receives tax revenues.

Failure to boost or droop the debt ceiling by mid-October would make it not possible for the federal authorities to keep up all of its monetary obligations.

 

Brett Davis, who earned a bachelor’s diploma in journalism from Western Washington College, has written for newspapers, public coverage organizations, a significant humanitarian establishment and a software program firm. Brett lives in Federal Method, Washington, simply south of Seattle.

Brett Davis, who earned a bachelor’s diploma in journalism from Western Washington College, has written for newspapers, public coverage organizations, a significant humanitarian establishment and a software program firm. Brett lives in Federal Method, Washington, simply south of Seattle.

https://www.westernjournal.com/biden-says-cant-guarantee-us-wont-default-debt/ | Biden Says He ‘Cannot’ Assure US Will not Default on Debt

Huynh Nguyen

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