U.S. President Joe Biden says Republicans’ indifference to parliamentary turmoil in raising U.S. debt bills, warns that the dollar could be in jeopardy if savings are made if the US government pays off its debt.
Speaking Monday from the White House, Biden compared the debt suspension in Congress to a “meteor” heading to “accident in our economy ”as it reappears from the bottom of the epidemic.
“It will undermine the security of the US Treasury, it will threaten the preservation of the dollar as a global currency,” Biden said, adding that the US could also pose a risk of rising interest rates and lower interest rates.
Asked if he could prove that the US would not debt default, Biden replied that he would not. “It’s up to Mitch McConnell,” he said, referring to a younger Republican leader in the Senate.
Biden’s comments highlight the growing concern among Biden’s management over the financial crisis and their potential for damaging US financial markets and US recovery if there is no consensus. Janet Yellen, US Secretary of State Treasurer, says the U.S. is at risk of losing money to pay off its debts on October 18.
Democrats and the White House insist that raising the debt should be part of the deal because it reflects the amount of money and taxes approved by both members over the years. But Republicans in Congress are refusing to accept an increase in any debt, because it would mean that Biden’s total approval is worth billions of dollars.
He argued that Democrats – who oversee all chambers of Congress and the White House – should develop unilaterally through legislative processes called reconciliation that would require minority members in the Senate. Republicans will not give their approval for an additional debt to move to the Senate at this time, which would allow Democrats to move faster on their own.
“Democrats are ready to do whatever it takes to stop it. Republicans just let us do our job. Just get out of the way. If you don’t want to help save the country, get out of the way so you don’t ruin it,” Biden said.
Debt-raising votes are very difficult for Republicans, although they can be difficult for Democrats, especially those in swing countries or on the battlefields.
Biden’s resumption of the credit limit follows the days of conflicts and fights among Democrats on Capitol Hill at the end of a US President’s bid to revive the economy with billions of dollars in new finances over the next decade, backed by tax cuts.
Last week the leaders of Biden and the Democratic Congress failed to forge a $ 1.2tn and $ 3.5tn package, combining climate change funding and increasing government support for education, child care and health care. .
Speaking to reporters, Biden said he had “closed the alliance” with 99% of his party, but was only backed by 48 of the 50 most important senators in the upper room, pointing out Joe Manchin and Kyrsten Movies, two careful Democrats, were major obstacles.
Biden’s comments on the debt crisis came as Chuck Schumer, a senior Senate leader, said he wanted Biden to sign off the debt by the end of the week.
“We do not have the opportunity to wait until October 18, as it is our responsibility to assure the world that the United States will meet our needs in a timely manner and that all confidence in the history of the United States should not be questioned,” he said.
McConnell sent a letter to Biden on Monday morning stating that “the country is moving around the inevitable dangers”, criticizing Democratic Congress leaders. Biden said he hopes to negotiate “honestly” with the junior Senate leader.