US President Biden’s ‘debt limit’ warning

The 24 Republican senators, led by Utah Senator Mike Lee, wrote a letter to US President Joe Biden on the debt limit.

The letter in question claimed that there would be unequivocal opposition to a debt limit increase without real structural spending reform that reduces deficit spending and returns “fiscal sense” to Washington.

The letter, which was assessed as “a complete disaster” for the country’s fiscal policy, read: “Our country is $31 trillion in debt, this is a level of debt that exceeds the size of our economy right now. Inflation is making life more expensive for American families.” Expressions were used.

“We do not intend to vote for a debt limit increase without structural reforms to address current and future fiscal realities, effectively enforce budget and spending rules, and manage runaway government policies,” the statement read. letter. statement was included.

DEBT LIMIT CRISIS

In the US, the federal government has reached the $31.4 trillion debt limit that could lead to default.

The debt limit, or debt ceiling, means “the upper limit of the amount of money the US government can borrow to pay its debts.”

Republicans, who just won a majority in the House of Representatives, favor major spending cuts in the debt limit negotiations. Democrats, for their part, insist on raising the debt limit, while rejecting Republican proposals to cut certain spending.

There is concern that the debt limit issue, which has become an impasse between Democrats and Republicans, will rock markets in a few months. As US recessionary expectations strengthen, the two sides’ showdown over the debt limit carries more risk than ever. (AA)