US in amid Possible Debt Crisis: Biden Shorten its Asia Tour

 

President Joe Biden, Image Credit: Google

The President of United States, Joe Biden was scheduled to visit Australia and New Guinea in the way to Japan to attend G-7 summit. The visit was shortened due to internal debt crisis America is possibly going to face by the start of June.

Treasury Secretary Janet Yellen has alarmed that America could begin defaulting on its debts, potentially as early as June 1.  While the Congressional Budget office has predicted June 15.

The treasury office has also warned of dire repercussions if the country run out of the cash to pay utilities. This could also result in its inability to pay federal workers, increase in the interest rates with severe impacts on the business and mortgages as well as negative impacts on global markets.

The White House said Biden has directed the staff to work more efficiently and continue to meet on daily basis. He also told that he will meet republicans to discuss the matter upon his return from G-7 summit.

There is a divide between the Republic and Democrats on the solution of debt crisis. Republicans insist for significant spending cuts in exchange for their support to raise debt ceiling while Democrats call for a clean increase of the borrowing limit with no condition attached.

Democrats are also accusing the Republicans of using extreme tactics to delay the matter until the United States fall into the debt crisis.

Republican Demands:

In the midterm elections, Republican regained control of the American Congress. This compels the government to take them into confidence regarding important matters.

Republicans demands that:

• Cut of $130 Billion from federal agencies and programs in exchange for support to raise debt ceiling.

• Limit the Fiscal Budget of 2024 to the level 2022.

• Expedite domestic energy production projects.

• Simplify the process for obtaining permits for pipelines and refineries.

• Roll back the remaining unspent Covid Fund

(Courtesy: France 24)