As the clock ticks toward a possible US default, Democratic presidential negotiators Joe Biden And Republicans are trying to block that Budget agreement.
White House negotiators and Republican House Speaker Kevin McCarthy, They plan to resume talks after Monday’s meeting between their respective leaders.
Biden and McCarthy called their meeting at the White House “productive,” and while it didn’t produce an agreement, it at least allowed them to set their respective boundaries.
In nine days, the United States runs the risk of finding itself in an unprecedented situation where it cannot service its debts; A dangerous reality for a first world power.
If Congress doesn’t raise the government’s borrowing capacity by then, Biden won’t be able to pay officials, make welfare payments and repay some creditors.
That American bankruptcy It will affect the global economy. According to analysts, this will create widespread panic and recession in the global economy.
To increase borrowing power — currently more than $31 trillion — Republicans are calling for Biden to cut spending.
Democrats are willing to cut spending, but disagree with Republicans on how to do it. The White House wants to tax the rich and big corporations with higher taxes, without touching social benefits or the president’s big investment plans. In short, increase central government revenue.
Republicans, on the other hand, want to cut public spending.
According to the American press, among some specific budget lines, a Reallocation of funds earmarked to fight covid And with some spending freezes, its duration is bitterly debated.
Time is running out, especially since it’s not about Biden and McCarthy coming to terms with each other. As Biden put it, both have to “sell” the deal to their parties so they get it approved by both houses of Congress.
Democrats control the Senate by a narrow margin and Republicans hold a majority in the House of Representatives.
Democratic senators considered to be from the progressive caucus and Republican lawmakers aligned with Donald Trump have already sought maximum assurances from their respective leaders.
A US default could change the tone of the campaign Towards next year’s presidential election.
Biden, who is running for re-election at age 80, is fighting to win votes with promises of prosperity and social justice. A slowdown could sink his already weak approval rating.
His predecessor Trump, the favorite in the Republican primaries, asked his people not to “bend” the White House on the debt issue.
(With information from AFP)