US President Joe Biden makes it clear that the Republican demands for cuts to solve the crisis with the debt ceiling are unacceptable. But a solution is still possible, claims Biden.
This is reported by NTB-AFP-AP.
At a press conference before leaving Hiroshima on Sunday, he said Republicans must drop their extreme demands and forget about making a deal to avert a catastrophic default in which they get all their demands through.
He said he planned to speak with House Republican Majority Leader Kevin McCarthy on the plane home and that he hoped McCarthy was ready to resume talks on raising the debt ceiling.
The Republicans are sticking to their demand for sharp cuts to the budget, without raising taxes on the richest to compensate.
Among other things, they want to introduce requirements that recipients of health care through Medicaid must work and they want to introduce severe cuts in food aid.
The Biden regime believes this will lead to millions of Americans losing their right to health services, and that 700,000 people may lose access to food aid.
That is why Biden is considering adopting the 14th amendment to the Constitution, which states that there can be no doubt about the United States’ public debt. This may give the president the right to implement the increase of the debt ceiling on a presidential order.
But this will probably lead to the case ending up in a courtroom and it is doubtful whether this can be carried through by 1 June.
The Ministry of Finance says that around 1 June the state can run up money to service all its obligations, including the interest on the debt and transfers that are determined in the state budget.
There is little doubt that negotiations are strictly necessary. After all, there are only ten days until the crisis is a reality. So far, the Biden regime has shown little willingness to negotiate. The Wall Street Journal writes about the case.
Leaders in Washington are scrambling to come up with a deal to lift the country’s borrowing limit. If they are unable to do so, the country might be unable to pay its bills as soon as June 1, according to an assessment by the U.S. Treasury Department.
Just days ago, White House officials and Republican lawmakers alike expressed cautious optimism that a deal to raise the federal government’s borrowing limit was within reach.
At the heart of the problem are fundamental disagreements about how much the state can continue to waste on climate measures and other controversial issues. That the Biden regime describes the Inflation Reduction Act as something to fight inflation is pure madness. The federal government is running huge deficits and therefore the debt is rising. American taxpayers foot the bill.
If one follows Biden’s economic policy going forward, this will probably result in at least 1,500 billion dollars in increased national debt every year going forward. Eventually, the American economy will collapse.
In the last two fiscal years, the deficit has been around 1,400 billion dollars. This year, the deficit is already up to $925 billion, since October 2022, when the fiscal year starts.
At the same time, American funds are pouring into the war in Ukraine. This can happily be supported, but this increases the federal expenditure noticeably.
Biden will solve the problem by increasing the tax levels, but since the richest, who pay most of the tax, can just move to another country, this is unlikely to work. We see this, both in California and here in Norway. Republicans would prefer to cut government spending.
The possibility of the parties reaching an agreement depends on one of the parties giving in. In my opinion, this is unlikely in the political climate in the United States today.