The Undersecretary of the Department of the United States of America, Wally Adeyemo, showed this Friday that there is no ‘plan b’ if an agreement between the White House and the Republicans is not reached to raise the country’s debt ceiling.
Adeyemo stated in a televised interview that the Treasury does not have an alternative plan that allows the US to “continue compliance” with its obligations “to the debtors, veterans (…) and the American people”.
The portfolio “number” of the two funds excludes the possibility that President Joe Biden invokes the 14th amendment to the Constitution to close the deadlock in negotiations that would allow the debt ceiling without passing through Congress. “Invoking the 14th amendment to raise the debt ceiling as a way to avoid negotiations is not an option,” Adeyemo concluded.
The 14th Amendment confirms that the validity of the public debt of the United States, authorized by law, cannot be questioned, and that the president can rely on it as a constitutional duty to avoid default.
Adeyemo’s words came as US businessmen told the press that a deal was nearing a deadline next week. “We worked through the night last night and I think we’re going to get going. I want to make progress and I want to solve this problem,” House Speaker Kevin McCarthy commented Thursday night. “It comes down to one thing: this is about spending,” the Republican leader said.
Democrats prefer to base the debate on the domestic context and its effects on the local population. “People often think of debt as something that only affects the financial market, but it also means that our services cannot meet our elders or our veterans,” insisted Adeyemo in the same interview.
Lots of information
A possible agreement, in particular
Discussions between both parties are seeking to reach an agreement on spending in two years that would increase the debt ceiling, which would go beyond the 2024 election, according to the US press. The biggest fear is that the inability to reconcile Wall Street and affect the global economy.
Unlike most countries, the United States can only borrow up to a limit set by Congress – the debt ceiling – which requires legislative approval every time the country must raise it to pay its debts. The current debt ceiling reached $31.4 trillion in January, and the country could find itself in default as soon as June 1 if Democrats and Republicans don’t strike a deal first.
The deal discussed would limit federal funding, but would include small grants that raise military and veteran wages, according to the Wall Street Journal.
For now, there is still no public announcement of any progress in the talks that show light at the end of the tunnel in the negotiations between the White House and Republican lawmakers.
While the talks continue, lawmakers will continue a short recall day until Tuesday. However, they will be notified if they appear on Capitol Hill to vote if a deal is announced, according to CNN.
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