US: possible default date moved to June 5, negotiations continue

Five additional days of respite… The United States may be unable to meet its financial obligations and therefore be in arrears from June 5, the US Treasury Department said Friday. The previous estimate was June 1st.

“Based on the most recent data available, we now estimate that the Treasury will not have sufficient resources to meet government commitments unless Congress raises or suspends the debt ceiling by June 5,” Treasury Secretary Janet said. Yellen in a letter to elected representatives of Congress.

The White House and negotiators continue Friday to push for a compromise rich in political ulterior motives. The government’s challenge is to get Congress—the Republican House and the Democratic Senate—to vote quickly to raise the national debt ceiling or else the United States could be in default, an unprecedented situation with potentially catastrophic economic, financial, and social consequences. .

Very tight schedule

This parliamentary maneuver has long been a formality for both parties. But this time Republicans are demanding cuts in public spending in exchange for a green light. Officially, Joe Biden refuses to negotiate, believing that he is being held “hostage”. In fact, the advisers of the two camps have been in continuous negotiations for several days and, according to a number of US media reports, have already agreed on several main areas.

If an agreement is reached, it will still have to pass the Senate, which is narrowly controlled by the Democrats, and the House of Representatives, in which the Conservatives have a fragile majority. The parliamentary calendar is limited, with many elected officials returning home to the four corners of the United States for a break of several days for the long Memorial Day weekend.

Joe Biden knows he has a lot to lose if he defaults, and is already struggling with a declining popularity rating and repeated questions about his age and vitality. “There are Trumpists in the House of Representatives who know the damage (default) will do to the economy. And because I’m the president, and because presidents are responsible for everything, Biden will be held accountable. And this is a good way to ensure that Biden is not re-elected,” he said during a recent press conference.