Extreme conflict continues between the ruling and opposition parties over the government’s debt limit
Sour until June… Compromise appears to be more difficult due to internal conflicts in the Republican Party
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(Seoul = Yonhap News) Reporter Yuhan-ju = US Treasury Secretary Janet Yellen warned every day of the possibility that her country could go bankrupt.
This is due to the observation that the default crisis (debt default) caused by the US-specific system of putting a ceiling on government debt has been solved every time, but this time it may be different.
Secretary Yellen tweeted on the 21st (local time), “The United States has always paid all its debts since 1789, and the recognition that we are a nation that we can trust and depend on in that way has been underpins the global financial system. ” “The default will cause widespread damage to the US economy,” he said.
Secretary Yellen’s comments came on the day as the total debt of the US federal government reached the limit set by law on the 19th.
The debt ceiling was set by Congress to limit the amount of money the US government could borrow, and the current debt ceiling is $31.4 trillion (about 3 trillion 8779 trillion won).
If the US Congress does not raise the debt ceiling, there will be a deficit, in other words, a US national default.
Republicans, who have a majority in the House, are currently refusing to raise the debt ceiling, citing government spending cuts as prerequisites.
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The US Treasury Department went into special measures on the 19th to avoid a default, such as delaying new payments for the federal civil servant retirement and disability pension (CSRDF), but this only buys time until June and is far from a solution basic.
In response, Minister Yellen warns every day that the possibility of default in the United States could lead to a global financial crisis.
“This will undermine the role of the dollar as a key currency,” Yellen said the other day.
He also sent a letter to the leaders of the Senedd and the House on the 13th, urging them to raise the debt ceiling.
According to Newsweek, the US Congress raised the debt ceiling a total of 22 times between 1997 and 2022, and there was no default.
However, looking at the current conflict between the ruling and opposition parties in the United States, the outlook is not bright.
The White House is asking Congress to raise the debt ceiling without conditions such as government spending cuts, so the prospects for negotiations between the White House and Republicans are not bright.
The fact that the negotiating space of the Republican House leadership is not large is also noted as a factor hindering negotiations, as the Speaker of the Republican House Kevin McCarthy was barely elected speaker after going through 15 votes, the largest since 1859.
hanju@yna.co.kr
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2023/01/22 15:34 Sent
