United States: To avoid default, Joe Biden would be willing to let go

Joe Biden Willing to “Compromise” with Republican Opposition on Public Spending Political conflict A source familiar with the matter assured Wednesday that it could push the US back to normal.

The US president will present to his opponent, the Speaker of the House of Representatives, Kevin McCarthy, a plan on certain expenses that will reduce the payment to the federal state “by more than 1000 billion dollars over ten years”. That would come on top of the deficit reduction already promised by Joe Biden, which is $3 trillion over ten years.

Janet Yellen is urging both sides to come to an agreement

Yet according to this source, the White House would be willing to rein in public spending for two years, which Republicans have asked for longer. The 80-year-old Democrat was initially modest withdrew from negotiations under threat of bankruptcy, It offered to reallocate funds originally earmarked for responding to the Covid-19 pandemic.

Treasury Secretary Janet Yellen reiterated Wednesday that it was urgent for Democrats and Republicans to find a budget compromise before Congress could vote to raise the public debt ceiling.

The Conservatives must vote for a deal to cut public spending. Janet Yellen recalled that if Congress — divided between a Democratic Senate and a Republican House of Representatives — didn’t act, “it seemed almost certain that we wouldn’t be able to last past the beginning of June.”

New view

As of June 1, the United States could find itself in payment default, meaning it could not honor its financial obligations in terms of salaries, pensions or repayment to creditors. This unprecedented situation, according to economists, would be tantamount to a massive recession in the United States and a market crash that would potentially contagion throughout the global economy.

(AFP)Show comments