Five additional days of respite… The United States could be unable to honor its financial commitments and therefore find itself in default of payment from June 5, the American Department of Finance indicated on Friday. A previous estimate put this date on June 1.
“Based on the most recent data available, we now estimate that the Treasury will not have sufficient resources to meet the government’s obligations if Congress does not raise or suspend the debt ceiling by June 5. “, detailed the US Secretary of the Treasury, Janet Yellen, in a letter to the elected representatives of Congress.
The White House and the negotiators continue Friday to build a compromise rich in political ulterior motives. The challenge for power is to get Congress – the Republican House and the Democratic Senate – to vote quickly to raise the public debt ceiling, otherwise the United States could find itself in default, an unprecedented situation. with potentially catastrophic economic, financial and social implications.
A very tight schedule
This parliamentary maneuver has long been a formality for both parties. But this time the Republicans demand, in exchange for their green light, a reduction in public spending. Officially, Joe Biden refuses to negotiate, believing he is being held “hostage”. In reality, the advisers of the two camps have been talking non-stop for days and according to several American media, have already agreed on a few main lines.
If an agreement is found, it will still have to be adopted by the Senate, narrowly controlled by the Democrats, and by the House of Representatives, over which the Conservatives have a fragile majority. The parliamentary calendar is constrained: many elected officials have returned to their homes across the United States for a break of several days, on the occasion of the long weekend of “Memorial Day”.
Joe Biden knows he has a lot to lose in the event of a default, he who is already struggling with a reduced popularity rating, and with recurring questions about his age and his vitality. “There are Trumpists in the House of Representatives who know the damage (a default) would do to the economy. And because I’m the president, and because presidents are responsible for everything, Biden would be held accountable. And that’s a good way to ensure that Biden is not re-elected, ”he said during a recent press conference.