The president of United States, Joe Bidenwill meet with the Republican leader of the lower house, kevin mccarthyto ask that opposition legislators vote to increase debt limit and negotiate on spending cuts.
“The president has said it many times, Increasing the debt limit is not a negotiation, it is an obligation that this country and its leaders have to avoid economic chaos“said the White House spokeswoman, Karine Jean-Pierre it’s a statement.
The president will also speak with McCarthySpeaker of the House of Representatives, on the plan of Republican lawmakers to put the cuts to health benefits as a condition for increasing the spending ceiling.
“We are going to have a clear debate on two different visions of the country: one that cuts Social Security and another that protects it”, sentenced the spokeswoman.
The ex-president donald trump on Thursday urged the Republicans of the Low camera a do not modify Social Security benefits nor of Medicare, the latter a health coverage program for those over 65 years of age.
The US reached the debt limit on Thursday, which is currently $31.38 trillion.
The debt ceiling is the total amount of money the government is authorized to borrow to meet its existing legal obligations to pay Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds, and other payments .
every so often, The US is close to defaulting on the national debt because, unlike other countries, the US Executive can only issue debt up to limit set by Congresswho has the power to raise that ceiling as he sees fit.
Despite the fact that said limit has been raised dozens of times in the past, this time there is concern after the Republicans of the Low cameraunder the control of the Conservatives, promised that they won’t raise it unless Biden accepts cuts in federal spendingwhich the president has already said he is not going to do.
The treasury secretary, Janet Yellenwrote Thursday in a letter to congressional leaders that his department has already activated “extraordinary measures” to pay the bills, but stressed that the use of these special financial tools extends until June 5.
This Friday, a spokesman for the International Monetary Fund He assured that not increasing the US debt ceiling would have serious repercussions for the country and the world economy, and urged the parties involved to work to resolve the impasse.
“The world economy is facing another difficult year. There would be serious repercussions if the US debt ceiling were not raised, there would be serious repercussions, both for the United States and through spillover effects on the world economy,” the spokesperson said in response to a query from the news agency. Reuters.
“We strongly encourage the various parties to build the necessary agreement to resolve this matter,” he added.
Yellen, in charge of the Treasury in the government of Democratic President Joe Biden, had said last week that “the failure to comply with the obligations of the government would cause a irreparable damage to the US economylivelihoods and global financial stability”.
A default would damage the credibility of the United States, something that should never happen, warned the executive president of the JPMorgan Chasethe main bank of the country.
“We should never question the solvency of the United States government,” Jamie Dimon said in an interview with the network CNBC. “That is sacrosanct. It should never happen.”
The Treasury will begin to reduce its cash balances and resort to accounting techniques and tools to allow the government to continue its functions, it said. mickey levyfrom Berenberg Capital Markets.
(With information from EFE AFP and Reuters)
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Source-www.infobae.com