In the dispute over raising the debt limit, US President Joe Biden is again inviting people to a crisis meeting. Harvard economist Kenneth Rogoff explains why he sees the default as an “existential threat” but is still optimistic about an agreement.
In Washington, the dispute over the debt ceiling is entering the next round. US President Joe Biden is once again inviting high-ranking Republicans and Democrats to the White House for crisis talks. Such a meeting had already taken place last week – without an agreement.
In the United States, the debt limit is set by Congress, which 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. For an increase, however, Biden’s Democrats are dependent on the votes of Republicans in Congress. So far, they have stood in the way and are demanding savings from the President, for example in the social sector.
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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.