Joe Biden can’t guarantee US won’t default

US President Joe Biden said on October 4 that he could “not guarantee” that the United States would not default on October 18, the deadline for Congress to increase the country’s debt capacity.

The deadline of October 18 is approaching. That beyond which the United States could find itself in default of payment if the debt ceiling is not raised. The opportunity for US President Joe Biden to castigate the Republican opposition, accusing it of playing a “dangerous” game in Congress.

“Do not get in the way,” he said on October 4 in a speech at the White House, denouncing the “irresponsibility” of the Republicans at a time when the Democrats are working to vote for an increasing text the country’s debt capacity. The Democratic Party has a majority too thin to be able, with its own votes, to “raise the debt ceiling”, a legislative maneuver that Republican parliamentarians can prevent.

“I can not believe [qu’un tel scénario se produise]», Launched the American president about a default of payment, which never occurred in the history of the United States. “Can I guarantee it?” I cannot guarantee it, ”he added, however.

Lawmakers have already raised or suspended this “debt ceiling” 78 times since 1960. It is the maximum legal limit granted by Congress for borrowing. Currently set at a little above 28 trillion dollars, the Treasury estimates that it will be reached on October 18.

The US government would then have to stop living on credit overnight and cut spending. A default by the United States would also have unpredictable consequences for international finance and the economy, dominated by the dollar and irrigated by US Treasuries.

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