Joe Biden vows to prevent US default

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US President Joe Biden assured that he would not allow a default to be declared in the country. He said this while speaking at an event in Maryland.

During the speech, Biden accused the representatives of the Republican Party in the House of Representatives of the US Congress in an attempt to take the country’s economy “hostage”. According to him, the Republicans are allegedly threatening not to pay the national debt if it does not accept their economic plans.

“This is not a debt for this or last year. We have reduced the deficit by $1.7 billion over the past two years. These are obligations that have accumulated over 200 years. I made it clear <…>that he does not intend to discuss the question of whether we will pay our debt or not. I will not allow this country to default,” Biden said.

He stated that a US default would be a disaster for the country. The American leader added that Congress must now re-approve the increase in the national debt ceiling without any conditions.

In addition, Biden recalled that he plans to present his draft budget for the next fiscal year in March. According to his forecasts, the new project will reduce the deficit by $2 trillion over 10 years.

Earlier, on February 15, the US Congressional Budget Office warned that without an increase in the US external debt ceiling, the country could default between July and September of this year.

On February 2, it became known that Joe Biden refused to negotiate an increase in the national debt, insisting that Congress should make a decision without any conditions.

Earlier in the day, Speaker of the US House of Representatives Kevin McCarthy said he would not allow the public debt to rise without spending reform. He pointed out that the increase in public debt should be accompanied by a “change in behavior” in relation to budget spending.

On January 19, US Treasury Secretary Janet Yellen announced that the department had taken emergency measures to avoid a default in connection with the achievement of the national debt ceiling. So, on the same day it became known that the total US public debt approached $31.5 trillion.

In October, the US national debt for the first time in history exceeded $31 trillion. As of October 3, the country’s total debt exceeded $31 trillion, of which over $24 trillion was owed to individuals. In addition, $6.8 trillion goes to domestic holdings.

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