Republicans unwilling to raise US debt ceiling
According to US President Joe Biden, if the country defaults on its debt , Republicans will be to blame. At present, Democrats are not able to provide protection against default on debt obligations due to disagreements with the Republican Party.
Now, the default risk in the US is very high. The increase of the public debt ceiling used to be a trivial matter some months ago and easy to deal with by the US authorities. Currently, it is a key issue that needs urgent action. "A failure to raise the debt limit will call into question Congress' willingness to meet our obligations that we have already incurred, not new ones. 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 US President noticed in his recent speech.
Biden also mentioned possible effects of failure to raise the debt limit. He warned of an economic catastrophe. The US dollar may lose its status as the main reserve currency. Moreover, rising interest rates on the national debt, as well as a decline in the US credit rating are possible. Besides, Joe Biden put the blame on Republicans. "Not only are Republicans refusing to do their job, but they are threatening to use their power to prevent us from doing our job - saving the economy from a catastrophic event," the US President noted. According to the CEO of the US largest bank, JPMorgan Chase, Jamie Dimon, a possible US default on its debt will have disastrous economic consequences.