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No US Default

05.06.2023
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https://www.bbc.com/news/world-us-canada-65795242

US President Joe Biden, in his first address to the nation from the Oval Office of the White House, said that raising the national debt ceiling would help avoid economic collapse.

Signing the executive order on Saturday, approved by representatives of both houses of Congress, Biden spoke highly of his political rivals, the Republicans, noting that they acted in good faith - a rare praise from the lips of a Democratic president.

Presidential addresses to the people from the Oval Office are usually heard during serious crises, whether it be a war or a large-scale natural disaster. Biden equated such crises with a default on the public debt in the amount of $31.4 trillion, which could have occurred as early as Monday and would have become "catastrophic" if measures to raise the public debt ceiling had not been approved.

The White House and Republican representatives have been discussing the terms of the deal for several weeks amid growing doubts that they will be able to agree before June 5, when the government runs out of money. In the end, the bill to raise the national debt ceiling was passed by the Senate late on Thursday by a majority of 63 to 36 a day after it was easily approved by the House of Representatives.

Under the terms of this deal, the public debt ceiling is canceled until January 1, 2025 and limits are placed on non-defense spending, but an increase in spending on health and food is allowed. In line with President Biden's line, there is also an increase in full funding for medical services for war veterans.

The Congressional Budget Office estimates that the new legislation will save $1.5 trillion over the next 10 years. Despite bipartisan support for the bill, some Republicans say it does not provide enough budget cuts, while some Democrats, on the contrary, believe that the deal leads to too large cuts.

 

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