(Washington Composite) U.S. President Biden and the Republican Parliament leader will be held on Tuesday (May 9) in the White House, hoping to reach a compromised agreement on improving the upper limit of government debt.Some analysts describe this as a political wage fighting. As a result, it may disrupt the US presidential election pattern in 2024. It is even more concerned that it may impact the global economy.
In the United States, increasing the debt limit is a difficult and difficult budget procedure; basically, the US government spending always exceeds the budget. Unlike most countries, the US government must be approved by Congress to borrow additional loans.In most years, this discussion has almost no controversy.
This year, the House of Representatives McCarthy and the radical Republicans decided not to say no, unless the Bayeng government first agreed to comprehensively reduce the budget.Republicans of Congress have accused Bayeng government splurge and have no sense of responsibility in finance.
Biden accused the Republicans of using the national economy as a threat. He insisted that he had to raise the debt limit first as in previous years, and then discussed the reduction of expenses to reduce debt.Biden pointed out many times that during the term of President Trump, the Republicans of Congress increased their debt limit three times without any conditions."I want to emphasize to the leader of Congress that they should increase the upper limit of debt as always, don't let the debt default."
The U.S. government has accumulated debt for decades, and it is the world's largest in the world, reaching 31 trillion US dollars (about S $ 41 trillion).The cost of the US government in the past two sessions is particularly huge. The Trump administration has pushed "tax reduction" and the Bayeng government pushed the "infrastructure".urgent.
The participants who negotiated on Tuesday were in addition to Biden and McCarthy, as well as the Senate Republican leader McConal, the Democratic Party leader of the House of Representatives Jeffris, and the Democratic Party leader of the Senate.
Financial derivatives linked to U.S. Treasury will also be affected and fell in an all -round way
As the two parties continued to persist, the last period of the US debt defaults was getting closer, and this debate has become a political wrestling battle.
If Congress refuses to authorize more borrowings, the government will exhaust its funds and fall into a default.It will follow that interest rates are soaring, stocks have been sold in large quantities, treated with national debt rating, and the United States must fall into a economic recession. This has not been considered long -term damage to the geopolitical influence on the United States.
Budget analyst of the US Think Tank Policy Research Center, Shay Akabas, pointed out that the "debt limit" crisis will continue to grind the value of US government's US dollar assets such as US government's credit and US debt, thereby bringing a significant impact and a significant impact on the global economic pattern.deep influence.
Australian economist Guo Shengxiang said: "Once U.S. bonds have fallen in trend declines due to factors such as US credit downgrade, inflation out of control, debt default, and deterioration of market expectations, and many financial derivatives linked to U.S. debt will also fall simultaneously."
If a procrastinating plan is adopted, it will impact the presidential election next year
An analysis of the White House warned: "Even if it approaches US debt defaults, it may have a significant impact. If you really fall into a debt default, the damage must be very serious."
The U.S. Treasury estimates that if the debt limit is not raised, the federal government may be breach of the contract on June 1st.This is only more than three weeks before the negotiations on Tuesday.
Analysts said that there are several potential plans for both parties to avoid debt defaults. They can extend the date of debt defaults for several weeks and continue to negotiate at the same time; they may also reach vague and enlightenment, and the promise of uncertain amount of expenses will be reduced, but this is also this.Just push the problem next year, and next year will be the year of US presidential election.
If everything fails, the White House does not rule out the constitutional power and bypass Congress to unilaterally authorize more borrowings, but this may be challenged in the court.
Bynden said in an interview with Microsoft Broadcasting Corporation (MSNBC) on Friday, when he talked about Article 14 of the Constitution's amendment: "I haven't reached that stage yet."
