Raise the debt ceiling of the United States only point on the agenda between Democrats and Republicans
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.
US President Joe Biden ruled that failure to raise the debt ceiling "would threaten the dollar's status as the world's reserve currency," and that the US credit rating would be lowered. , as well as the increase in "interest rates for mortgages, car loans or credit cards."
President Biden argues that he will support the new debt ceiling by raising taxes on large corporations and the wealthy, or people who earn more than $ 400,000 a year. "They are threatening (the Republicans) 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.
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 the consequences accountable for 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. "
What is the debt ceiling?
The debt ceiling legislation allows the US Government to request credits or bonds at a fixed amount. In history, the amount has increased on many occasions, mainly when the Government requires money to finance its operations and programs.
In 2019 the amount was situated at 22 trillion dollars, but currently the debt of this country amounts to 28.4 trillion dollars.
In 2011, the US 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.
An Announced Event
For her part, the Secretary of the Treasury of the United States, Janet Yellen, previously warned legislators that, if the debt limit is not increased 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 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 pass this bill, 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. .
Meanwhile Chuck Schumer, Senate Majority Leader, warned that approaching the deadline would be dangerous for the economy.