Washington (EFE).- The dialogue on the debt limit in the United States remains open but inflexible between Democrats and Republicans, who made it clear this Thursday that it is up to the other party to approach positions to reach an agreement.
The meeting the day before between the US president, Joe Biden, and the Republican Kevin McCarthy, president of the House of Representatives, was a first step after which both parties agreed on Thursday that it is irresponsible that the other side does not give the arm to twist
McCarthy pointed out in his weekly press conference that his party will not approve an increase that is not linked to a spending cut: «I am very clear. I think you have to raise the (debt) limit, but not do it without changing behavior.
As the Republican representative advanced, Biden has agreed to call him “in a couple of days” to set the date for a new bilateral meeting.
The one on Wednesday at the White House ended with a positive tone and both agreed on the need to continue talking.
The conservatives now hold control of the Lower House after achieving a majority in the November mid-term elections and want to take advantage of this turn of the tables to force concessions from the Biden Administration.
Democrats point to danger with debt ceiling
The debt limit is currently 31.4 trillion dollars and was reached on January 19. The Treasury Department has resorted to extraordinary measures to pay the bills, but these special financial tools only extend until June 5, hence the urgency of an agreement.
“Gambling with the debt ceiling is dangerous, destabilizing, and would spell disaster for all Americans. The last thing we should be doing in Congress is using the debt ceiling as a political bargaining chip,” Senate Majority Leader Chuck Schumer stressed Thursday.
The debt ceiling is the total amount of money the government is allowed to borrow to meet its existing legal obligations to pay Social Security and Medicare benefits, military salaries, interest on the national debt, tax returns, taxes and other payments.
The US Executive can only issue debt up to the limit established by Congress, which has the power to suspend that limit as it sees fit.
“A default would create a crisis never seen in our country. Mortgage and car loan rates would skyrocket. Families with an adjustable rate mortgage or looking to buy a home would pay thousands of dollars more each year. What a terrible nightmare at a time when costs are already too high in housing and everywhere else,” Schumer stressed.
The White House calls to avoid a disaster
The White House does not want to make the increase in the limit subject to any prior condition and in the words of its spokesperson, Karine Jean-Pierre, reiterated this Thursday that it is up to Congress to take the step to avoid this “economic catastrophe.”
“We truly believe that it is a constitutional duty of Congress to do so, as it has been done many times in the past. We have said loud and clear (to McCarthy) that if he has ideas on how to work together we are willing to listen and work in good faith,” he concluded.