Tuesday, May 30, 2023

At the edge of the precipitous dialogue on the US debt

WASHINGTON – Republicans are pushing talks on the debt to the brink, moving in a dangerous push as they prepare to leave Washington for a national holiday in the coming days ahead of a potential default that would wreak havoc on the global economy.

House Republican Representative Kevin McCarthy was defiantly defiant, declaring the crisis “not my fault.” He warned that Republicans need more time to reach an agreement with President Joe Biden to cut the economy.

It is clear, however, that McCarthy – who came to the station with the support of far-right sectors – is now facing a potential crisis.

With the United States commemorating Monday, lawmakers now do not expect to return to work until Tuesday, just before June 3, when, according to Treasury Secretary Janet Yellen, the United States will begin to find itself without paying its own money. bills and potentially fall into default disaster.

Fitch Ratings agency AAA has already described the credit rating of the United States as “potentially negative”, warning of a possible lower rating due to a political fight over the increase in the debt ceiling.

“This is a battle between extremism and common sense,” Rep. Katherine Clark, D-Massachusetts.

The Republican added that “the American people want to make an impossible choice: waste or default on the debt.”

Republicans and the White House have been negotiating for weeks without being able to reach an agreement, in part because the Biden administration never rushed to negotiate with McCarthy on the debt, while always insisting that this issue should not be discussed in order to obtain others. more important

McCarthy cuts the government into deep cuts trying to squeeze Republican votes to raise the debt ceiling. The White House has promised to spend next year on par with the current one, but the Republican leader says it’s not enough.

“We spend less than we spent last year. This is a start,” McCarthy said.

A failure to raise the U.S. debt ceiling — currently $31 trillion — could lead to a potentially catastrophic federal default and almost certainly lead to economic turmoil both domestically and internationally. Retirees and those who depend on social security are already taking measures.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com/
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