In the USA, there is a risk of default. In an interview with the Harvard economist Kenneth Rogoff explains why the dispute over the debt limit is nothing less than a constitutional crisis star.
In the United States, Congress sets a debt ceiling at irregular intervals and determines how much money the state can borrow. The current debt ceiling has now been reached, so there is a risk of default in June. The Democrats of US President Joe Biden therefore want to raise the debt limit, but they need the Republicans in Congress to do so. So far, however, they have stood in the way and are demanding cuts from Biden, for example in the social sector.
The renowned economic expert economist Kenneth Rogoff explains in an interview with the star the background and the seriousness of the situation:
The dispute over the debt limit is currently dominating political Washington. What is it exactly, sir Rogoff?
Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
