US President Joe Biden declared a threat to the Defalt Default. According to him, he cannot guarantee that default on debt obligations will not occur in the country, it depends on the actions of the Republicans. On the likelihood of economic catastrophe, the American president said during a speech in the White House, reports TASS.
Biden noted that the potential default can occur if the Congress does not agree to raise the ceiling of public debt. Without this, the status of the dollar as a backup world currency will be threatened, the US credit rating will fall, and interest on the public debt will increase.
“The inability to raise the Ceiling of the public debt cast doubt on the readiness of the Congress to fulfill our obligations that we have already taken on themselves, and not new. This will undermine the reliability of the Securities of the Ministry of Finance, and will also threaten the status of the dollar as a global reserve currency,” said American Leader.
Also Biden called on the Republicans to stop “Playing Russian Roulette” with the US economy. According to the head of the White House, the political opponents counteract their actions to make the Congress raise the ceiling of the public debt, and therefore they put the country at risk of default.
Earlier it became known that the Republicans in the US Senate blocked the draft law on the financing of the government and the increase in the ceiling of public debt, and now the Democrats will have to try to avoid the hindered threat of an economic disaster. Approve financing is necessary until October 1. If the state holder limit is not raised, the United States risks encounter a default.
According to the head of the largest American bank JPMorgan Chase Jamie Daimon, a possible US default due to a public debt limit will have catastrophic consequences for the country’s economy.