Awani Review

Complete News World

American Default: Hopes for Political Agreement Grow

President Joe Biden has shown enough of himself optimistic In the afternoon, I hope to know If we can reach an agreement by tonight.

We are close [d’un accord]But it’s not done yetA source close to the discussions had earlier cast doubt on the possibility of an announcement on Friday.

House Speaker Kevin McCarthy, the main Republican protagonist of this political-finance soap opera, noted the progress.

But still Nothing is certain until everything is agreed uponHe added that it was to put pressure on the President.

There is no shortage of pressure on this issue, which is difficult to understand outside the US and outside the Washington bubble in general.

The deadline has been postponed

The date when the US Treasury will be unable to meet its financial obligations, however, has been refined: it is now set for June 5 as opposed to June 1, giving it a few more days.

Based on the most recent data, we estimate that if Congress does not raise or suspend the debt ceiling by June 5, the Treasury will not have sufficient resources to meet the government’s obligations.US Secretary of the Treasury Janet Yellen detailed this in a letter to elected officials of Congress on Friday.

More than $130 billion in pension payments, health care and veterans are expected in the first two days of June. leaving the Treasury with very limited resourcesShe clarified.

The challenge is to get Congress — the Republican and Democratic Senate — to vote quickly enough to raise the public debt ceiling, otherwise the U.S. could find itself in default, an unprecedented situation with economic implications and devastating financial and social consequences.

See also  Why Australia is afraid of China

This parliamentary maneuver has long been a ritual for both parties. But this time, Republicans are demanding cuts in public spending in exchange for their green light.

Officially, Joe Biden refuses to negotiate and hopes to be retained Hostage.

President Joe Biden speaks to reporters on the White House lawn.

Photo: Getty Images/Chip Somodevilla

In fact, advisers from both camps have been talking non-stop for days and have already agreed on some key lines, according to several US media outlets.

Reportedly, the deal would freeze some spending but leave the defense and veterans budgets untouched. The New York Times And this The Washington Post.

Limit break

It will be deferred for two years after the next presidential election, until the risk of default.

Each camp wants to minimize the damage at the political level.

Kevin McCarthy, who needs to cement his status as House speaker, can be credited with pushing for more budget austerity, while Democrats will say he protected social benefits or big investment projects.

The President of the United States, re-election campaign, explained Thursday Two opposing views Worked on these discussions.

He presented himself as a champion of social and financial justice. But according to the press, the 80-year-old Democrat would have abandoned these talks to increase the amount of resources dedicated to the fight against tax evasion.

If a deal is found, it still needs to be approved by the Senate, narrowly controlled by Democrats, and the House of Representatives, where conservatives have a weak majority.

A solution First of allThe IMF says

Parliamentary calendar is tight: Many elected officials returned to their strongholds for a multi-day break over the long weekend. Memorial Day.

See also  "Losses over a billion dollars" | Ukrainian pirate sentenced to 10 years in prison

In addition, some progressives in the Democratic Party have threatened to either not approve or delay as long as possible a text that makes too many concessions to the opposing camp, as have some elected representatives of the Republican Party.

IMF Managing Director Kristalina Georgieva said on Friday that a solution could be found First of all America insists on doing for the global economy Further to reduce public debt.