US President Joe Biden today admitted that he would suspend payments this month because of Republicans’ refusal to raise the credit limit, according to Prinza Latina.
The president said he did not guarantee the administration would be able to pay its bills after Oct. 18 if Republican senators did not want to destroy the country’s way of dissolving.
“It depends on Mitch McConnell,” Biden said, referring to the lack of support in the Senate for the minority leader’s responsibility for raising the debt ceiling.
In a statement to the press from the White House, he criticized the Red Army for closing all avenues by Democrats to increase the federal debt ceiling and accused it of promoting an “irresponsible and dangerous” political game with the US economy.
McConnell, for his part, urged Democrats to approve ‘own’ in a letter, which is impossible due to the majority of the ruling party in both houses, especially in the Senate. At least 10 Republicans.
Biden explained that this could happen through a legislative mechanism called ‘reconciliation’ that would allow exceptional approval of projects with a simple majority.
However, planning in the Senate would require “hundreds of votes” because it “has nothing to do with the credit limit” and thus ensures the continuation of negotiations.
The comments came 14 days before the United States was due to repay its national debt, which Treasury Secretary Janet Yellen warned would be an unprecedented disaster.
On September 27, the Senate rejected the vote on an initiative.
Biden and Blue Side leaders in Congress believe Republicans are deliberately undermining the country’s ability to pay bills and causing the first debt installment in U.S. history.
The US government can only lend to the extent established by Congress, which has the power to raise that ceiling at will; But the Republican opposition, which controls half of the Senate seats, is reluctant to do so, as EFE highlights today.
Biden acknowledged that without the cooperation of the Conservatives, the United States could not guarantee that it would not reach its debt ceiling this month, which technically happened in late July but the Treasury Department was able to avoid a temporary suspension. Payments.
Treasury Secretary Janet Yellen has warned, however, that the “extraordinary” measures taken by the government to postpone the suspension of payments cannot be extended beyond October 18 and that Congress must take action before that date.
“Repaying our debt obligations will be caused by a self-injury that will drag our economy off the cliff,” Biden stressed.
If that happens, the “dollar’s position as a global reserve currency” will be threatened, and the US credit rating could be lowered, further “raising interest rates on mortgages, cars or credit cards,” he explained.