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| 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)
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