(Washington) Republicans on Wednesday offered Democrats a temporary solution to break the parliamentary stalemate and avoid the US default, while Wall Street and Joe Biden warned of the catastrophic consequences of such an event.
Senate Republican leader Mitch McConnell said in a statement that he “wants to protect Americans from the crisis triggered by a short-lived Democrat.”
He therefore wants to allow his opponents to quickly stop the debt ceiling until December.
If accepted, this Republican proposal would give Democrats some time to find a more lasting solution, whose legal environment is hampered by their slim majority.
But according to Mitch McConnell’s offer, it will pass through the complicated legislative path that Joe Biden’s camp has so far refused to borrow.
So Democrats may turn down the offer following Wednesday’s debate.
The U.S. Treasury has set October 18 as the date for the world’s largest economy to default if Congress fails to “raise the debt ceiling.” In short: To increase the credit capacity of the country.
The pressure on Republicans, especially from Joe Biden, has been increasing exponentially for days.
The U.S. president, weakened by the chaotic withdrawal from Afghanistan, is also fighting for his major economic and social reforms and does not want a financial disaster.
He called big names on the Wall Street to the White House on Wednesday, either physically or by video conference, warning of the consequences of failing, for the first time in American history.
“Play with Fire”
“We’re playing with fire,” Citibank boss Jane Fraser said.
Jamie Dimon, the boss of JPMorgan, one of America’s most influential bankers, has warned of the “unprecedented” default “cascading” effects of the United States.
“The world is watching,” he said, recalling the key role of the currency and the U.S. Treasury in the global economy and finance.
NASDAQ’s boss, Adena Friedman, of the U.S. technology market, estimated that the markets would act “in a very negative way” by default, endangering the savings and retirement plans of millions of Americans.
Joe Biden has once again attacked Republicans by saying “Stop playing Russian roulette” in the name of the US economy and America’s financial reputation.
The “debt ceiling” is the maximum amount of debt in the United States administered by Congress. It is set at over $ 28 trillion.
October 18 was not harsh, but on Wednesday Treasury Secretary Janet Yellen said the country would have “very little cash flow” after that day without a legal solution.
The government is therefore forced to reduce its spending so that the salaries of government employees or social benefits for certain people are possible.
The United States, which, like almost all major economies, has borrowed in terms of public spending, has already raised this glorious “ceiling” again and again.
But Republicans began to use this routine legislative maneuver as an instrument of political pressure when Obama was president.
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