“Joe Biden Optimistic Despite Threats of Default on US Debt”

Jakarta –

President of the United States (US) Joe Biden looks optimistic in the face of threats default on debt facing his country. He and negotiators from the Republican Party are still trying to raise the US government debt ceiling, which amounts to US $ 31.4 trillion.

Negotiations on a deal to raise the debt ceiling have been going on for weeks. While the US is threatened with default on debt on June 5, 2023.

If the negotiations fail, the US will have to face a default or economic disaster default on debt. But Biden still seems optimistic that the results will be good.

“Everything is looking good,” Biden said optimistically, quoted by Reuters, Saturday (27/5/2023).

Meanwhile Republican representative Patrick McHenry said he agreed with Biden’s comments, while reminding that negotiations were not over.

“Hopefully (the results are good),” said McHenry, one of House Speaker Kevin McCarthy’s main negotiators with the White House.

Negotiators are discussing a deal that would raise the deadline by two years, while remaining at odds over whether to tighten conditions for some anti-poverty programmes.

McCarthy left the Capitol on Friday after a conference call. One of his top lieutenants told fellow Republicans that no agreement was reached, CNN reports.

Any deal must win approval in the Republican-controlled House and the Democratic-led Senate. The process for Biden to sign it into law could take more than a week.

On the other hand, United States (US) Secretary of Finance Janet Yellen alluded to the thin reserves of money that made the country able to default on debt payments.

Even the US is said to be running out of money to pay its bills on June 5th. He hopes the US congress can postpone the debt limit date.

“We don’t think the Treasury Department will have sufficient resources to meet its obligations if Congress does not raise or suspend the debt limit by June 5,” Yellen wrote in a letter to House Speaker Kevin McCarthy, quoted from CNBC, Saturday (27/5/2023).

Yellen explained that the Ministry of Finance will make payments of US$ 130 billion on June 1 and 2. This makes their cash reserves even thinner.

“During the week from June 5, the Ministry of Finance is scheduled to make debt payments and transfers of around US$ 92 billion,” Yellen continued.

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