Household: Debt dispute: Switch from Biden and McCarthy

Household: Debt dispute: Switch from Biden and McCarthy

The US President and Republican Speaker of the US House of Representatives Kevin McCarthy have agreed to meet to discuss the debt dispute.

In view of the deadlocked negotiations in the US debt dispute, President Joe Biden is planning a personal telephone call with Republican negotiator Kevin McCarthy on the sidelines of the G7 summit in Hiroshima, Japan. The White House said Biden had instructed his team to schedule a call with the Republican speaker of the US House of Representatives for Sunday morning US time.

US media had previously reported that McCarthy had asked for such an interview. The White House also said Biden was closely involved in the negotiations from Hiroshima. His team informed him about the status both on Saturday evening and on Sunday morning.

McCarthy’s accusation

Shortly before, McCarthy had accused the government of moving away from an agreement. “The White House is moving backwards in the negotiations,” the Republican wrote on Twitter. “Unfortunately, the socialist wing of the Democratic Party appears to be in control – especially with President Biden not in the country.”

The US government denied the allegations, again accusing Republicans of taking a big step away from an agreement with an offer that included a number of extreme partisan demands.

Danger of a global financial crisis

At the beginning of June, the US government is threatened with a default if Biden’s team does not reach an agreement with the Republicans in Congress to raise the debt ceiling by then. In the USA, parliament sets such a limit at irregular intervals and determines how much money the state can borrow.

This time the procedure has degenerated into bitter tugging, which harbors serious risks: A default by the world’s largest economy could trigger a global financial crisis and an economic downturn.

Because of the domestic political dispute, Biden’s participation in the G7 summit in Japan was at times even on the brink. He finally canceled the second part of his trip abroad – a visit to Papua New Guinea and Australia – to return to Washington on Sunday evening right after the Hiroshima deliberations.

Source: Stern

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