Debt Showdown As Biden Heads To G-7.
“The White House’s struggle to strike a deal with the new Republican House majority, which is demanding spending cuts in exchange for raising the nation’s debt ceiling, is sparking fears of a historic default that would have a catastrophic effect on the global economic landscape.
There were doubts Biden would even make the trip, so precarious is the current dynamic in America’s capital. The latter half of the trip was scrubbed on Tuesday so the president could return to Washington early in an effort to cement a deal. It would have included the first-ever visit to Papua New Guinea by a U.S. president, before participation in the Quad Summit in Australia.”
The G-7 biggest economies in many ways depend on the health of the American economy which hangs in the balance as negotiations continue on the debt limit. The President and Congress (most members) know that a default would have Worldwide ripple effects that could undermine load bearing international financial walls. The biggest question in Washington right now is- will Biden cave and agree to spending cuts and if so what will be cut to satisfy McCarthy and the Maga wing? Time is running out and we will all know soon.
