Biden: The United States will not allow default

Updated on 01/26/2023 at 11:40 PM

  • US President Joe Biden wants to avoid the possibility of his government defaulting at all costs.
  • The background is a political dispute between Biden Democrats and Republicans over raising the debt ceiling in the United States.
  • A US default could lead to a global financial crisis.

More news about US politics

US President Joe Biden He wants to prevent imminent default by his government with all his might. “I will not allow anyone to have complete confidence in the creditworthiness of United State “It’s being used as a bargaining chip,” Biden said Thursday in a speech in Springfield, Virginia. “We, the United States of America, pay our debt,” he asserted.

The US debt ceiling has been reached

The background is a political dispute between the Democrats in Biden and the Republicans over raising the debt ceiling in the United States, which could plunge the global economy into crisis. The applicable debt ceiling was reached last week. The United States can no longer borrow to pay its bills. The United States is not yet insolvent – but if there is no political agreement between the two camps, it is only a matter of time. In contrast, a default by the world’s largest economy could lead to a global financial crisis and economic downturn.

The White House warns of tactical games

Biden warned that the very idea of ​​such scenarios is incomprehensible. He said he would not engage in reckless threats that would hold the economy hostage and weaken the country internationally. “I will not allow it.”

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In the United States, Congress sets a debt ceiling at irregular intervals and limits how much money the country can borrow. With their new majority in the House of Representatives, the Republicans are now threatening to raise the debt ceiling only under certain conditions – for example in exchange for cuts in the social sector. The White House, on the other hand, is wary of political tactics on this economically significant issue. (dpa/jst)


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