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Debt ceiling: break between the White House and the House of Representatives. The stop to the federal state is getting closer and closer.

Debt ceiling negotiations in Washington DC took a big step back over the weekend as the White House and House Republicans continue to point accusing fingers at each other.

It sounds like he wants a default more than a deal,” House Speaker Kevin McCarthy (R-CA) told Fox News on Sunday. " We have 11 days ," McCarthy continued, urging Biden and the Democrats to be "reasonable."

Republicans have pushed for substantial and long-term spending cuts, arguing that Congress must return the nation's deficit to 2022 levels while limiting government spending growth. The White House, on the other hand, wants to achieve political goals through taxation.

McCarthy said there is talk of extending the debt ceiling through 2025, but said he is asking for federal spending cuts in exchange for GOP votes to do so. Biden, he says, is resisting.

The president keeps switching sides every time Bernie Sanders gives a press conference ,” he said.

McCarthy said Biden is calling for tax hikes after previously agreeing to keep them off the table. He also said Republicans have made compromises, but did not specify them. -Bloomberg

Meanwhile, Biden – speaking at a press conference held after the Group of Seven (G-7) summit in Hiroshima – said he would speak with McCarthy shortly, although he added that the Republican plan was unacceptable.

The speaker and I will talk later on the plane, on the way back ,” Biden said. And our teams will continue to work .

I am willing to cut spending, and I have proposed more than $1 trillion in spending cuts ,” he continued. “ But I think we also need to look at tax revenues,” adding that the Republican proposal to cut $2 trillion in taxes would hurt the economy. Instead that of the Dems to collect this money with taxes will help (ironic…)

It is time for the other side to move from their extreme positions, because many of the proposals they have already made are simply, frankly, unacceptable ,” Biden told reporters. " And it's time Republicans accepted that there is no bipartisan deal to be made on their own partisan terms ."

Biden's comments came after McCarthy accused the White House on Saturday of backtracking on negotiations and told reporters there would be no progress until Biden returns from the trip.

The White House is backtracking on negotiations ,” McCarthy tweeted Saturday afternoon. “ Sadly, the socialist wing of the Democratic Party appears to be in control, especially with President Biden out of the country .”

“President Biden doesn't think there is a single dollar of savings to be found in the federal government budget,” McCarthy tweeted in the evening. " He'd rather be the first president in history to default on debt than risk angering the radical socialists who are calling Democrats right now ."

One of McCarthy's top deputies, House Financial Services Chairman Patrick McHenry (R-NC), said on Sunday he was "pessimistic" about the current state of negotiations and that negotiations were not currently expected to continue in Washington.

Then approaches the unthinkable: a "Hold" on federal services to save money and at least pay the interest on the debt, which is mandatory if you do not want to see a devastating default. It is a question of applying the "Furlough", the retirement without salary, of tens, if not hundreds, of thousands of US civil servants. Still a shock, if not a disaster, but the confrontation is pushing in this direction.


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The article Debt ceiling: break between the White House and the House of Representatives. The stop to the federal state is getting closer and closer. comes from Economic Scenarios .


This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/tetto-del-debito-rottura-fra-casa-bianca-e-camera-dei-rappresentanti-sempre-piu-vicino-lo-stop-allo-stato-federale/ on Mon, 22 May 2023 07:00:28 +0000.