May 12, 2023
1 min read

Biden issues warning on potential US debt default

Biden blamed the so-called MAGA Republicans in the Congress for the “manufactured crisis,” saying there’s no question about U.S. ability to pay its bills….reports Asian Lite News

U.S. President Joe Biden has warned of the dire consequences of a possible default by the U.S. government on its debt obligation as early as June 1.

Speaking at SUNY Westchester Community College in New York on Wednesday, Biden said the U.S. economy would fall into recession with 8 million Americans losing their jobs, and its international reputation would be damaged in the extreme in the case of a debt default.

“If we default on our debt, the whole world is in trouble,” said Biden.

Americans would face higher interest rates for credit cards, car loans, mortgages and payments for social security, Medicare, troops, and veterans could all be halted or delayed, said Biden.

Biden, a moderate Democrat, blamed the so-called MAGA Republicans in the Congress for the “manufactured crisis,” saying there’s no question about U.S. ability to pay its bills.

Biden and Congressional leaders are set to meet again on Friday to negotiate a budget for fiscal year 2024, which is intertwined with the debt ceiling issue.

The first meeting between Biden and four Congressional leaders on Tuesday failed to generate meaningful breakthroughs.

The Democrats and Republicans are still jockeying for position prior to an anticipated intense showdown in the coming weeks.

In January, the United States hit its 31.4-trillion-U.S.-dollar debt limit, set in December 2021, prompting the Treasury Department to use accounting maneuvers known as “extraordinary measures” to keep the government paying its bills, such as curbing certain government investments.

ALSO READ: US, China top officials hold ‘candid’ talks in Vienna meeting

Previous Story

US, China top officials hold ‘candid’ talks in Vienna meeting

Next Story

Trump challenges defamation, sexual abuse verdict

Latest from -Top News

India-US Trade Talks Go Down to the Wire

The Indian trade negotiators have extended their stay in US, signalling a last-minute push to iron out key differences….reports Asian Lite News With the US tariff deadline fast approaching, Indian and American

Extreme Heat Chokes Europe

Although over 80 countries have developed national drought plans, the UNCCD warns that implementation remains a major gap…reports Asian Lite News Large swathes of Europe are being scorched by extreme heat and

Rashid Khan Condemns Taliban Education Clampdown

While advocating for women’s education, Rashid also highlighted the importance of trained healthcare professionals, especially for women….reports Asian Lite News Rashid Khan, one of Afghanistan’s most prominent cricketers, has publicly condemned the

Pakistani Handles Banned Again in India

The move comes in continuation of India’s escalating digital and diplomatic restrictions against Pakistan…reports Asian Lite News All Pakistani accounts on X have once again been blocked in India, after briefly becoming
Go toTop

Don't Miss

Trump ‘Runaway Favourite’ For GOP Candidacy

The Iowa Caucasus political party meeting that selects the US

Indian Students’ Deaths in US Spark Safety Worries

The Indian Consulate in New York said that a police