US President Joe Biden has warned that a US default will create difficulties and problems that will affect all parts of the world.
During a forum in New York, he said: “If we do not pay our debts, the whole world will face problems.”
According to the President of the United States, the current crisis was created by the Republicans, because the United States is actually solvent. He warned that a default, if it occurs, would send the country’s economy into recession and seriously damage Washington’s international reputation.
In January, the US Treasury notified Congress that “extraordinary measures” would be initiated as a result of raising the debt ceiling to $31.381 trillion.
The White House, for its part, called on Congress to unconditionally raise this figure, but the House of Representatives, which is controlled by the Republican opposition, links this measure with the need for budget cuts and cuts in public spending.
In turn, Treasury Secretary Janet Yellen earlier warned that the government will not be able to continue to meet all of its obligations until June 1 if a decision is not made on the public debt.
Source: RIA Novosti.
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