There is no assurance for the debt ceiling to increase in two-week time from President Joe Biden who threw criticisms against Republicans for going against measures to keep the U.S. from not having the ability to have its debts paid for the first time.
The president, during a speech from the White House, has pointed fingers on Republicans who opposed working with the Democrats to boost the debt limit to have the past debts paid.
The rise in the debt limit was opposed by Congressional Republicans who denied their votes. According to Biden, they should vote in a bipartisan manner to have the bills, which the two parties are accountable, paid.
“Not only are Republicans refusing to do their job, but they’re threatening to use their power to prevent us from doing our job — saving the economy from a catastrophic event. I think quite frankly it’s hypocritical, dangerous and disgraceful,” Biden said.
“Republicans say they will not do their part to avoid this needless calamity. So be it. But they need to stop playing Russian roulette with the US economy,” he added.
Last week, Treasury Secretary Janet Yellen said Congress is only given until October 18 to raise the nation’s debt limit.
Answering the question of the media regarding his assurance to reach the borrowing ceiling, the president said: “No I can’t — that’s up to Mitch McConnell. … I can’t believe that that would be the end result, because the consequences are so dire. I don’t believe that, but can I guarantee it? If I could, I would, but I can’t.”
Senate Minority Leader McConnel-led Republicans pointed out that Democrats should work by themselves to handle the borrowing ceiling through a reconciliation, or known as a special budget process. The said method does not need the votes from the Republicans.
But the idea did not get the approval of Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi who believe that Republicans are also responsible to pay the debts sustained by the two parties.
Democrats have to make up their minds regarding the use of the budget reconciliation process as the deadline nears.
“A failure to raise the debt limit will call into question Congress’ willingness to meet our obligations that we’ve already incurred — not new ones — we’ve already incurred. This is going to undermine the safety of US Treasury securities and will threaten the reserve status of the dollar as the world’s currency, that the world relies on,” the president said, adding, “The American credit rating will be downgraded, interest rates will rise for mortgages, auto loans, credit cards, and borrowing.”
Before delivering his speech, Biden said he has received the Republican leader’s letter regarding the borrowing ceiling, and said he intends to talk to McConnell regarding the matter.
“I hope we can have some intelligent and honest conversation about what he is proposing. I think the easiest way to do this, and if the Republicans would not use the filibuster, would be to let us vote on what is already in the Senate right now, passed by the house, to raise the debt limit. And we could do that in the next several days,” he said.
An increase on the debt limit is needed, he said, due to the former administration’s “reckless tax and spending policies.”
“Republicans in Congress raised the debt three times when Donald Trump was President, and each time with Democrats’ support. But now they won’t raise it even though they’re responsible for more than $8 trillion in bills incurred in four years under the previous administration,” he said, as reported by CNN.
“They won’t raise it even though defaulting on the debt would lead to a self-inflicted wound that takes our economy over a cliff and risks jobs and retirement savings, Social Security benefits, salaries for service members, benefits for veterans, and so much more,” he added.
