Friday, January 27, 2023

Senate Republican leader sees US will “never” default on debt

Washington, January 19. The leader of the Republican minority in the US Senate, Mitch McConnell, said Thursday that the country will “never” default on its debt and that he is not worried about a potential financial crisis.

Speaking after an event at the University of Louisville (Kentucky), McConnell pointed to the current pressure to raise the debt ceiling, which is “always a fairly controversial endeavor”, although he believes the Treasury’s ” MPs will get it done before the “extraordinary” expires. Remedy” in June, according to national media.

The United States on Thursday reached the debt ceiling, the total amount the government is authorized to borrow to meet its current legal obligations and pay Social Security and Medicare benefits, military pay, interest on the national debt, tax refunds able to do. and other payments.

From time to time, the United States faces default on the national debt because, unlike other countries, the US executive can issue debt only up to a limit established by Congress, which has the power to increase that limit. as he thinks fit.

McConnell defended that he was not “concerned” about a possible financial crisis, in addition to believing that “the important thing to remember is that the United States should not default on its debt”, because “he has never done so”. Haven’t done it and never will…

After Treasury Secretary Janet Yellen announced “extraordinary measures” this Thursday to pay off the accounts, McConnell affirmed, “We will end up in some kind of negotiation with the administration about the circumstances or terms in which The loan limit will be increased. ,

Republicans in the lower house controlled by conservatives have vowed not to raise the debt ceiling again unless President Joe Biden agrees to cut federal spending, raising alarm over a hypothetical default.

Nation World News Desk
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