2023-05-24 14:32:02
Only 6 days left until the deadline for the US government. to convince Congress to increase the public debt ceiling And if that fails, on June 1, the US Treasury’s cash reserves will be depleted.
This means that the US government There will be no money to spend, known as default on debt payments. which is considered the first time in the history of the country
The debt default will affect tens of millions of Americans who will not receive salaries or state benefits. Including it will affect the world economy hard as well Recently, the White House has confirmed that President Biden is doing everything he can to avoid defaulting, while Democratic and Republican lawmakers have responded, accusing each other of being a problem. led the US economy to a downturn
United States approved Transfer of confiscated assets from Russia to Ukraine to rehabilitate the country.
US ‘might default’ next month if Congress stays calm
White House spokeswoman Karine Jean-Pierre said last night that Although talks between President Joe Biden and House of Representatives Speaker Kevin McCarthy What happened last Monday is not finalized. But President Biden won’t use another way to solve the problem. which will continue to discuss with the council until an agreement is reached without letting the Ministry of Finance’s cash reserves run out This will certainly lead to default on debt payments.
The interview came following earlier news that President Biden might work his way around debt default by using a provision of the 14th Amendment to give the Treasury the power to temporarily increase the debt ceiling. in a press release A White House spokesman said the US president would not use it because it was a “short-term solution”.
While Speaker of the House of Representatives Kevin McCarthy similarly said in an interview The council is making every effort so that the government and the council can come up with a solution to solve the problem together.
This interview came following last Monday. President Joe Biden has failed to convince the Speaker of the House of Representatives to approve a $31.4 trillion public debt ceiling increase. Why raise the public debt ceiling?
The United States has one of the highest public debt-to-GDP countries in the world, estimated at a trillion baht. Or 120 percent of the US public debt GDP. arising from borrowing and issuing bonds both domestically and internationally to bring money to be used in various development projects By being able to borrow a lot of money because people have confidence that the US government will be able to pay back the debt. However, the accumulated debt is now more than the specified ceiling. until the government had to ask the council to increase the debt ceiling in order to borrow more money
And if the House does not agree to extend the debt ceiling on June 1, the US Treasury’s cash reserves will run out and result in the US government. No money spent on projects Including payment of debt By calling this situation collectively that the debt default
which if such a situation occurs for just one week The impact will be very severe, for example.
On June 1, Medicare or the health insurance program for the elderly will not have a budget of $ 47 billion, or regarding 140 billion baht. And soldiers are not paid a salary from the government.
On June 2, if the council has not increased the debt ceiling Retirees and Social Security beneficiaries will not be able to access benefits worth $25 billion.
On June 6, a company that manufactures weapons for the US government Will not receive the outstanding amount of US $ 2,000 million, or approximately 60 billion baht from the government.
On June 7, Americans waiting for their tax refunds won’t get it.
On June 8, educational institutions at all levels will not receive the planned budget of 1,000 million baht, or approximately 30,000 million baht. The government will owe more health insurance debts and the public health system will begin to turbulence.
and if the council has not yet increased the debt ceiling The impact will spread all over the world. because the US government will not be able to pay interest to investors including investors holding government bonds Confidence in US bonds will decline. and will make the money market Capital markets around the world are in turmoil.
It can be seen that the impact will be very severe. And many people are beginning to be unsure. The government and the council will be able to find a solution on this matter. What is it that makes the two sides differ?
What the two sides saw differed was Regarding the management of the national budget on the side of the House of Representatives, which the Republican Party holds the majority of votes The problem arises because of President Joe Biden’s government overspending. Until the cash runs out The solution is The government must reduce spending.
While President Biden’s side sees it differently He stated that He was able to reduce his spending. But that’s not a solution without more revenues. Democrats have in the past supported a tax on the rich. But the Republican Party has always objected, and both parties have tried to discuss a solution several times.
The last time was last Monday night. When President Joe Biden had to cut off his scheduled visit to Australia and rush back to the United States. following the G7 meeting in Japan to meet with the Speaker of the House of Representatives, Kevin McCarthy, but the results of the discussions were still unable to resolve conflicts and differing opinions.
most recent last night A dispute arose between Democratic MPs and Republican MPs. Who are blaming each other for the problems that have caused this stalemate? Republican Majority Leader Steve Skalize. Opening a press release announcing that The party has been working on this issue for months to avoid a default situation. But the person in question is President Joe. Biden trying to bring new issues A tax increase has been involved and delayed discussions. The party will certainly not approve of the tax increase.
The Democrats later released a statement in response, with Congressman Peter Aguilar declaring: The party will not sign anything. All of which will lead to cuts in teachers’ budgets. Food budget or health insurance program budget for the elderly
This isn’t the first time that the United States have to face this situation Since the 1980s, the United States has been on the brink of default and Congress has had to raise the debt ceiling 78 times, with the last one being raised in 2021 or two years ago.
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