Confident in the deal, Biden says the U.S. will not default

US President Joe Biden has said he is optimistic about a possible deal with Republicans to raise the debt ceiling. The US government has until June 1 to make a decision and prevent the country from defaulting on the debt.

In a briefing with reporters at the White House this Wednesday (May 17, 2023), the Democrat said partisan differences have not prevented Congress from avoiding default in the past and will not now. He further informed that “America will not default”. Here it is Full Declaration (65 KB, in English).

“All leaders understand the devastating consequences for the American economy and the American people if we fail to pay our bills.”Biden said.

US House Speaker Kevin McCarthy met with Biden on the 3rd (16.mai) to define terms for approval of the debt ceiling increase and move forward in negotiations. However, no agreement was reached.

As Treasury Secretary Janet Yellen’s deadline approaches, Democrats and Republicans are still at odds over the need to raise the spending limit.

US Govt Credit limit reached $31.4 trillion on January 19, 2023, forcing Yellen “Extraordinary Activities” Temporarily withdrawing investments in pension funds and avoiding historical defaults such as Social Security.

Since the 1960s, the U.S increased Expenditure ceiling 78 times. Of these, 49 times under Republican presidents and 29 times under Democratic presidents.

The debt ceiling is the total amount of money the government is allowed to borrow by selling U.S. Treasury securities to meet its obligations, such as Social Security benefits, Medicare, military salaries, interest on the national debt, and tax repayments.

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