In a recent press conference, President Joe Biden sternly criticized Republican prerequisites in negotiations to settle the US debt ceiling deadlock as “unacceptable”. He maintained, however, that there’s still potential for finding a solution before a catastrophic default.
Prior to his departure from the G7 summit in Hiroshima, Japan, heading back to Washington, Biden denounced the Republican insistence on spending cuts as a prerequisite for raising the US government’s borrowing limit as “frankly unacceptable.”
“It’s high time the opposition abandon their extreme stances,” he argued.
The President plans to negotiate directly with Kevin McCarthy, the Republican Speaker of the House, during his Air Force One trip back to Washington, expressing optimism that “we can reach an agreement.”
Nonetheless, he warned that he cannot “assure that they won’t push for a default by taking an outrageous step.”
Biden disclosed that he was contemplating a seldom-referenced clause in the 14th Amendment of the Constitution, which asserts that public debt “shall not be questioned.” This might potentially empower the President to bypass Congress and raise the debt ceiling independently.
“We potentially have the authority. The key question is whether it could be implemented and enforced in a timely manner,” he added, acknowledging possible legal objections and the fast-approaching debt deadline.
According to the Treasury Department, if Congress does not authorize additional borrowing, the government could potentially default on its $31 trillion debt as soon as June 1, leaving it without funds.
Biden curtailed his Asia trip, which was initially planned to include stops in Japan, Papua New Guinea, and Australia, due to ongoing debt discussions.
The Republican Party, veering increasingly right, has turned the threat of default into a strong bargaining chip to press Biden into accepting spending cuts, which he accuses his opponents of using to put the US economy in jeopardy for political gains.
As the weekend saw negotiations at a standstill in Washington, both parties exchanged blame.
White House spokesperson Andrew Bates tweeted, accusing Republicans of risking a recession in the world’s leading economy: “We’re making 0 demands to avoid default. You’re the only ones with a hostage.”
White House Press Secretary Karine Jean-Pierre suggested that McCarthy was being influenced by his party’s pro-Trump faction, which is “threatening to put our nation into default for the first time in our history unless extreme partisan demands are met.”
However, McCarthy tweeted on Saturday stating that it’s the White House that is “moving backward.”
“Regrettably, the socialist faction of the Democratic Party seems to have the upper hand — particularly with President Biden out of the country,” he posted.
Biden speculated that McCarthy was probably waiting for him to participate before negotiations could resume.
“I presume he’s eager to deal directly with me,” Biden added.
Immediate additional borrowing is needed by the US government to meet expenses already approved in the current budget.
Should a deal to raise the debt ceiling fail, Washington would be unable to pay its bills, triggering global economic upheavals, including a potential US recession, as warned by the White House.
With the 2024 election campaign in full swing and the possibility of facing Trump again, Republicans are seizing this chance to portray Democrats as responsible for the country’s monumental debt, which in truth, has accumulated over many years.
Republicans assert that the debt ceiling cannot be raised without severe measures to shrink the deficit, including drastic social spending cuts and limiting access to Medicaid, a subsidized program offering healthcare for the poor.
In response, Biden has proposed a plan to cut some spending while also raising new revenue by increasing taxes on America’s wealthiest individuals and corporations currently benefiting from significant tax breaks. Republicans, however, are refusing to accept any tax hike as part of the deal.
“We continue to have a significant disagreement on the revenue side,” Biden acknowledged during his