The secretary of the Treasury was expressed from Dakar where she begins a trip of ten days on the African continent.
Mo12345lemonde with AFP
A defect on American debt would cause “a recession in the United States for sure and could lead to a global financial crisis,” the US finance minister, Janet Yellen, interviewed on Friday, January 20, interviewed >
The United States reached its debt ceiling on Friday, fixed by the congress at more than $ 31,000 billion and for the time being, elected officials have not been able to agree on an increase or a Ceiling suspension.
In itself, this event is not exceptional since this ceiling has been the subject of a legislative intervention in seventy-nine taken up since 1960.
the spectrum of a recession
But the republican majority in the House of Representatives want to take advantage of this subject to put pressure on the Democrats in order to lower a certain number of expenses, in particular those resulting from the programs implemented since the start of President Joe Biden, as well as taxes.
In the event of an American defect, “our borrowing costs would increase and each American would see his own following the same trend”.
“But even more, the inability to make a payment, whether it be our debt obligations, to beneficiaries of social spending or our soldiers, would certainly cause a recession in the United States And could lead to a global financial crisis, “assured Ms. Yellen.
“This would undoubtedly affect the role of the dollar as a reserve currency used in transactions all over the world. Many Americans would lose their work,” she insisted.
With the ceiling reached, the American treasure can no longer borrow, even in the short term for working capital needs. He set up a period of debt emission suspension which will last until June 5.
“Exceptional measures” have also been taken, said the Minister, including the cessation of payment to several retirement funds and health or disability benefits of public officials, technical adjustments that are not Immediately necessary for payment of pensions.
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These measures allow the American administration to see Coming but can only be temporary and, if the Congress could not agree, the United States could eventually find itself in a situation of payment.
Ms. Yellen was also received on Friday by Senegalese President Macky Sall, also an exercise president of the African Union, with whom she spoke of relations with Africa.
“We are here as a partner and we will help work for an African success,” she said at the end of this meeting.
This trip is the first in a series expected from senior officials of the Biden administration. The United States wants to regain influence on the African continent, the land of harsh economic and political competition between major powers. Ms. Yellen said that President Biden would go to sub -Saharan Africa by the end of this year.