-
Biden shrugged the Republican threat on debt caps on Wednesday.
-
“No, they won’t let us default,” he told reporters.
-
Given that the Republicans have refused to raise their debt limits, the two parties are on the verge of clashes.
President Joe Biden has dismissed Republican threats that no agreement has been reached on raising the debt cap. This is a new sign that the two parties are on the verge of a major clash that poses a threat of default.
“No, they won’t let us default,” he told reporters. “”$ 8 trillion One of them is under Republican surveillance. “
Biden’s remarks come only the day after the 46 Senate Republicans Sign pledge Agreed to not help Democrats raise debt caps, led by Senator Ron Johnson of Wisconsin-what Republicans did under President Donald Trump, but now Democrats have taken steps known as reconciliation He says he should use it and do it alone.
“We must not default under any circumstances,” he said. The letter said.. “The Democrats threaten to default because they refuse to vote for the increase in debt caps required by their own irresponsible spending,” he said.
Only four Republicans, Senator Lisa Murkowski of Alaska, Susan Collins of Maine, John Kennedy of Louisiana, and Richard Shelby of Alabama, withdrew their signatures.
Democratic Party Push $ 3.5 trillion spending plan Through a settlement that allows a simple majority to pass the bill instead of the 60 votes normally required in the Senate. Early Democratic plans did not include raising debt limits. It is possible to do that in reconciliation, but it can confuse the Democratic legislative agenda.
Treasury Secretary Janet Yellen I recently called Congress Raise the debt cap in a bipartisan way. The Treasury is now using its emergency powers to fund federal activities as Congress missed the July 31 deadline to raise or suspend its debt limits. The Treasury may run out of its cash reserves sometime next month or October. If Congress does not act before that point, it can cause catastrophic defaults.
Raising debt limits does not pave the way for additional federal spending-instead, it allows the government to pay off its debt and other financial obligations.
Senate Minority Leader Mitch McConnell Has served as Republican chief The Republican Party claims to delegate its mission to the Democratic Party. Republicans are demanding spending cuts in exchange for their support.
“If they want to spend trillions and trillions or more on 50 Rockstep Democratic votes, they can find 50 Democratic votes to fund it,” he said on the Senate floor. Said on Tuesday. “If they don’t want the Republican opinion, they don’t need our help. It won’t be easier.”
Senate leader Chuck Schumer did not rule out on Wednesday using only Democratic votes to pass a debt hike. However, he echoed Biden and said he believed that Republicans would not cause a catastrophic financial crisis.
“I can’t believe the Republicans will allow the country to default,” Schumer said at a news conference. “It has always been a debt-capped bipartisan. I think Democrats raised it three times with him when Trump was president.”
Read the original article Business insider