Elon Musk said on his Twitter that default in the US is only a matter of time.
“Given federal spending, the question is not whether a default will occur, but when it will,” Musk wrote, commenting on a White House publication criticizing Republicans opposed to raising the US national debt ceiling.
United States presidential administration Joe Biden urges Congress to raise the national debt ceiling, now legally set at $ 31.4 trillion – this is the highest value in the history of the United States. The US national debt crossed the previous mark of $30 trillion in early February. The New York Times then wrote that this happened several years earlier than predicted due to spending to combat the consequences of the Covid-19 pandemic, including unemployment benefits and support for small businesses.
The Republican Party, which currently controls the House of Representatives, has traditionally been skeptical about raising the debt limit and advocates cutting government spending. The report of the Congressional Budget Office says that if measures are not taken to increase or cancel the national debt limit, the government in June-September of this year will not be able to fulfill its financial obligations, which will mean a default of the American economy.
The U.S. budget deficit this year will be $1.4 trillion, the Congressional office predicts, an amount about $400 billion more than in May 2022. In addition, the report says the deficit will be 5.3% of GDP and will rise to 6.9% in 2033, well above the 3.6% of GDP, the average over the past 50 years. The agency estimates that the deficit will be $2.7 trillion in 2033.
