Raising the debt ceiling | Negotiations reached an impasse ten days before the possible default

(WASHINGTON) There are only ten days left for the White House and the Republican opposition to reach an agreement on the debt ceiling, allowing the United States to continue paying their bills, but negotiations appeared to be deadlocked on Sunday.

Republicans are already demanding drastic budget cuts before a green light is given. Democrats refuse. Each camp accuses the other of being responsible for this situation.

Joe Biden is scheduled to return from Japan on Sunday night, where he was attending the G7 leaders’ summit. He should speak from the plane, on the phone, on the way back, with the House Republican Leader, Kevin McCarthy.

The Democratic President of the United States criticized the Republican proposals on Sunday, saying: “It is time for the other side to abandon its extremist positions, because much of what it has already proposed is simply, frankly, unacceptable,” he said. However, he believes a solution can still be found.

” I do not think so [que ces propositions] Kevin McCarthy responded Sunday on Fox News: Joe Biden wants to “shorten more than a deal,” he blasted.

Time is running out to prevent the US from defaulting, an unprecedented situation with potentially catastrophic consequences for the US economy and even the global economy.

1any June

Indeed, the world’s first economy will not only be able to pay back its creditors, but also to pay certain salaries to civil servants or pensions to veterans.

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This can happen as early as 1any June, according to the Treasury Department.

I indicated in my last letter to Congress [lundi] That we expect to not be able to pay all our bills from the beginning of June, possibly as early as 1any June, Treasury Secretary Janet Yellen said in an interview with NBC on Sunday.

“My assessment is that the chances of reaching June 15th with the ability to pay all our bills are very low,” the minister added, calling for an agreement to be reached before June 1st.any June.

It also ruled out the possibility of appeal to the 14H Amending the US Constitution, which in theory could make it possible to circumvent the ceiling-raising obligation. The article actually states that “the health of the public debt of the United States […] should not be questioned.”

It does not appear that it could “be used appropriately in the circumstances, given the legal uncertainty surrounding it and given the tight deadline,” according to Janet Yellen.

Joe Biden, just before that, had indicated that he was considering this possibility, noting however that the question was whether it could be “done and called upon at the right time.”

‘A big step back’

Almost all major economies live on credit. The United States has already raised the debt ceiling – the maximum amount of the country’s debt – from the prerogative of Congress on numerous occasions. My appearance has become a political battle.

However, the optimism was on the order in the middle of the week, after a meeting between Democratic and Republican congressional officials with Joe Biden at the White House.

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But the proposal put forward by the Republican team on Friday night was “a huge step backward,” according to White House spokeswoman Karen Jean-Pierre, denouncing “a set of extreme partisan demands.”

Fingers were pointed at Republican officials, under the thumb of Donald Trump’s relatives “who [menacent] For our nation to default for the first time in our history.”

McCarthy had also mentioned Saturday night “a step back in the negotiations,” but on the part of the White House, he accused the “left wing of the Democratic Party” of “taking control.”

Joe Biden estimated on Sunday that Mr. McCarthy may have been waiting for him to return to resume discussions: “I think he wants to deal with me directly.”

The sticking point: Demanding Republicans cut federal spending, to bring it back to 2022 levels. That is, spending cuts of $130 billion.

A red line for the Democrats.

The Biden administration proposes spending cuts while raising taxes for the wealthy and companies that today benefit from generous tax cuts. What the Republicans reject.

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