White House says Biden “will not negotiate” to raise debt ceiling

President Joe Bidenthe republicans and the economy of USA entered a collision course on Tuesday after the White House He stressed that he will not negotiate the expansion of the government’s debt limit.

Treasury Secretary, Janet Yellenhas warned that the government will run out of money and default on its debts as soon as June 1 if there is no authorization for new loans.

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That would prevent the government from paying for everything from social programs to the military and, in what would be a catastrophic blow to global financial markets, the national debt.

Congressional leaders were invited to meet with Biden next Tuesday.

The Republicans, who control the House of Representatives, insist they will extend the debt limit if Biden first agrees to cut the federal budget. The White House has repeatedly said no.

“This is not an issue we will negotiate”said the White House press secretary, Karine Jeane-Pierre.

He assured that Biden is willing to discuss “a separate process to address budget cuts”, but said that the issue of the debt ceiling should be left completely aside.

“It is a constitutional duty of Congress to avoid default“, said. “Given the short time Congress now has, it is clear that the only practical way to avoid default is for Congress to unconditionally suspend the debt limit.”, he estimated.

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The political pulse comes just after Biden announced that he will seek a second term in 2024.

The failure of the negotiations would prevent USA honoring his debt commitments would cause potential economic chaos and take the election into dangerous new territory for the 80-year-old president, who is betting on rebuilding the economy after the coronavirus pandemic. covid-19.

“What has changed?”

Debt limit extensions are generally an uncontroversial annual accounting maneuver that allows the government to pay for additional expenses already incurred.

However, Republicans, who have fallen under the influence of a far-right faction in the House, chose to use the issue as leverage to cut public spending and reduce the deficit.

In the House of Representatives, where they have a slim majority, Republicans approved a bill that would allow more borrowing in exchange for sharp spending cuts. That project has no chance of being approved in the Senate, where the Democrats are in the majority.

Biden considers “unreasonable” and “dangerousthe proposed spending cuts, the spokeswoman said.

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Asked if Biden will eventually cave in to Republican demands to prevent the world’s largest economy from defaulting, Jean-Pierre insisted that the responsibility lies with Congress.

“It is the duty of Congress to do that.“, said.

Jean-Pierre noted that Republicans in Congress endorsed three annual debt limit extensions with little opposition when donald trump He was in power, before Biden. “What has changed?“, he asked himself.

Source: Elcomercio

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I am Jack Morton and I work in 24 News Recorder. I mostly cover world news and I have also authored 24 news recorder. I find this work highly interesting and it allows me to keep up with current events happening around the world.