2023-05-19 19:29:06
The tough negotiations on raising the debt ceiling in the USA were abruptly interrupted yesterday following encouraging signals. The Republican negotiators left the talks regarding an hour following they began, US media reported.
House Republican negotiator Garret Graves told reporters that President Joe Biden’s Democrats were being “unreasonable” and that there was a pause in the talks.
Time is of the essence: At the beginning of June, the US government is threatened with a default if Biden’s team does not reach an agreement with the Republicans in Congress on raising the debt ceiling by then. In the USA, parliament sets such a limit at irregular intervals and determines how much money the state can borrow.
This time, this process turned into bitter partisan wrangling. This is dangerous for the US and beyond: a default by the world’s largest economy might trigger a global financial crisis and economic downturn.
Because of the budget crisis at home, Biden’s participation in the G-7 summit in Japan was temporarily on the brink. He eventually canceled the second leg of his trip abroad – a visit to Papua New Guinea and Australia – to return to Washington right following the Hiroshima deliberations.
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