President Joe Biden increased the pressure on Republicans on Wednesday as the country approaches the deadline to raise the debt ceiling, claiming that the GOP is putting the country at risk of default by refusing to lift the debt ceiling.
“The United States of America pays its debts. It’s who we are, who we’ve been, and who we’ll be in the future, God willing “Biden stated the following.
If there is a default, Biden points out that it will be the first time in the country’s history. He emphasized the dire implications, repeating his Monday remarks that the Republican approach is “hypocritical,” “destructive,” and “a little disgusting.”
“Stop playing Russian roulette with the US economy, my Republican friends. Get out of the way if they don’t want to perform the task. We’ll put up with the heat. We’ll take care of it. We’ll make it happen. Let’s get started. Allow the Democrats to vote on raising the debt ceiling without any obstacles or further delays “Biden stated the following.
Republicans, according to Biden, are “teetering on the edge here” and are threatening to destroy the United States’ global reputation with a “cynical, destructive political trick, simply for politics.”
“It’s a meteor that’s heading straight for our economy. We should all want to put a stop to it, and we should put a stop to it right away. This should not be a political issue “Biden stated the following.
Before the discussion with business leaders, Senate Minority Leader Mitch McConnell publicly suggested two possible solutions for avoiding a default. Republicans, according to McConnell, have “already made it plain” that they will “help in accelerating” a reconciliation process that would allow Democrats to increase the debt ceiling without GOP support. Democrats, on the other hand, have largely rejected the notion, considering it excessively cumbersome, time-consuming, and dangerous.
Republicans would also “enable Democrats to use normal processes to approve an emergency debt ceiling extension at a predetermined cash amount to cover current expenditure levels until December,” according to McConnell.
Jen Psaki, the White House press secretary, responded to the offer by saying, “We might be able to do this today. We don’t need to kick the can down the road. We don’t need to go through a time-consuming procedure that exposes us to new dangers every day.”
“There has been no official offer made — a press release is not a formal offer,” Psaki stressed.
“Even the few information that have been published provide more convoluted, more challenging alternatives than the one that is fairly apparent in the President’s opinion, and it’s there in front of every member up on the Hill,” Psaki said.
A default, according to the President, would have a direct impact on Americans’ wallets. He stated that Social Security payments, military pay, and veteran benefits, as well as many other financial support programs, will be terminated.
“Failure to raise the debt limit will jeopardize the safety of US Treasury securities, jeopardize the dollar’s reserve status as the world’s reserve currency, downgrade America’s credit rating, and result in an increase in interest rates for families with mortgages, auto loans, and credit cards,” Biden said.
Democrats can increase the debt ceiling without Republican support, but they’ll have to go through the lengthy reconciliation process. Democrats in the House and Senate have stated that they are unwilling to use that procedure and are instead seeking Republican cooperation in paying the nation’s obligations.
Last month, Treasury Secretary Janet Yellen, who was present on Wednesday, stated that the US will run out of money to pay its obligations on October 18, putting the country in default for the first time in its history.
Yellen warned on Wednesday that the situation “requires rapid response” and that Congressional action would result in a “catastrophic consequence.”