Biden said about the problems for the whole world in the event of a US default
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US default could result in problems for the whole world, says President Joe Biden.
“If we default on our debt, the whole world is in trouble,” he said (quote according to RIA Novosti). The President believes that the crisis in the country was formed because of the Republicans, as the United States can pay its national debt.
Earlier, Biden at a meeting with Congress on the issue of raising the national debt ceiling declaredthat the US economy will fall into a deep recession in the event of a default. At the same time, according to him, the country pays all the bills.
Senate Minority Leader Mitch McConnell assured the US would not default, which Biden agreed with. McConnell also urged the US President to strike a deal with House Speaker Kevin McCarthy (a member of the Republican Party).
May 7 US Secretary of the Treasury Janet Yellen warnedthat in early June the United States may face default if the country does not pass a bill to raise the debt ceiling.
The House of Representatives (the lower house of the US Parliament) at the end of April approved a bill to raise the public debt limit, but with a significant tightening of budget policy, including a reduction in government spending. In the House of Representatives, the Republicans have a majority, in order for the law to pass further, it must be approved in the Senate, where Democrats predominate.
The bill, announced by Speaker of the House McCarthy, raises the ceiling by $1.5 trillion but cuts $4.5 trillion in spending. The Democrats did not support the proposal.
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