He said it before leaving for the G7 meeting in Hiroshima. He’s come back to repeat it now, during the summit. “Default is not an option,” he tweeted Joe Biden. “According to economists,” he explained, “8 million Americans could lose their jobs if our country doesn’t pay back its government bonds. The consequences would be catastrophic across the country and around the world.” A post summarizing the escalation of the debt dispute with Republicans in Washington.
Indeed, negotiations between the White House and the GOP to raise the debt ceiling and prevent the US from defaulting on June 1 have stalled again. At the end of a long day of negotiations yesterday, US House Speaker Republican Kevin McCarthy confirmed that negotiations with Democrats on the debt are “on pause” and that no new negotiations are scheduled for these hours. Earlier, Republican Congressman Garret Graves, a trusted McCarthy politician, highlighted the need for a pause in negotiations, calling White House negotiators “unreasonable.” “If both sides negotiate in good faith and realize that they cannot get everything they want, an agreement is still possible,” the government replied.
The President will return early from the US – interrupting his tour of Asia Pacific – only to resume negotiations in person. The White House spokeswoman said she was briefed several times a day on the status of the deal.
But Republicans are demanding budget cuts before they give them the green lightRaising the debt ceiling. The sticking point is the call for federal spending to be reduced to 2022 levels. That means a $130 billion spending cut. “We can’t spend more next year,” said Kevin McCarthy. A taboo for Democrats who want to extend the debt limit to 2025. Meanwhile, markets are nervous. Wall Street closed last night due to fresh shadows on negotiations.
The attractiveness of companies
More than the last few days 140 executives The biggest US companies, including Goldman Sachs, Pfizer and KKR, had urged the White House and congressional leaders to reach an agreement to avoid a “potentially devastating scenario”. In an open letter to President Joe Biden and Republican and Democrat leaders in the House and Senate, executives from a variety of large corporations and investment firms warned that failure to raise the debt ceiling could result in this “fatal consequences” for the US economy.