USA, the need to raise the borrowing limit

2023-05-06 22:17:29, Kosova & Bota CNA

USA, the need to raise the borrowing limit

US President, Joe Biden

US officials are warning that China and Russia would benefit from the "chaos" that would ensue if the United States defaults on the debt. The warnings come amid months of clashes between President Joe Biden and Republicans over the need to secure congressional approval to raise the borrowing ceiling.

The standoff between House Republicans and President Joe Biden over the nation's debt ceiling, the legal limit at which the U.S. government can borrow to pay its bills, is a gift to America's adversaries, says the director of Office of Management and Budget, Shalanda Young.

"They want to see chaos in the American system. They want us not to do our basic duties. It is an indicative test of the functioning of our system. Does democracy still work or does the Chinese way work?"

A US default on debt would shock global finances. Adversary countries such as Russia and China could take advantage of the situation by running a disinformation campaign on social networks, government media and other platforms, Todd Helmus, a disinformation expert with the RAND Corporation, told VOA.

"Russia and China claim the failures of American democracy in an attempt to argue that their system of government is better than ours. Often when they distribute this content, they do so through multiple channels, at least in a semi-coordinated manner. I think they would use this type of tactic in all communication channels."

Raising the borrowing limit used to be a routine vote. Congress has raised the debt ceiling 78 times since 1960. 49 times the country was led by Republican presidents and 29 times by Democratic presidents.

But in recent years, voting has become increasingly partisan, leading to intense showdowns in 2011 and 2013.

"If Congress does not approve raising the debt ceiling in the coming weeks, the United States will default on its obligations. This has never happened in American history," said President Barack Obama on September 23, 2013.

House Republicans insist on cutting federal spending before agreeing to raise the borrowing ceiling.

"House Republicans just passed the only bill in Washington that lifts the debt limit, ends Washington's wasteful spending and gets America back on the right economic path," said House Speaker Kevin McCarthy, Republican .

President Joe Biden says he will not negotiate on the issue.