The probability of a default in the United States of America is very low, but it can be assumed that the Republicans will go for it to weaken the Democrats. This opinion was expressed by the candidate of economic sciences, financial expert Vladimir Grigoriev on Wednesday, April 10.
He noted that in order to avoid it, it is enough for American legislators to raise the bar for the national debt ceiling.
“Talking about whether or not to raise the debt ceiling is an element of US internal political bargaining that happens regularly. This has already happened many times, and the two parties usually come to an agreement on this point, because these are the common interests of all political forces in the United States, ”he said in an interview with Lenta.Ru.
He allowed a situation in which the Republicans would abandon the usual model of behavior in order to weaken the country’s President Joe Biden and topple the Democrats.
“Then America will not completely lose the ability to attract money to the capital market, but its opportunities will be significantly reduced. This will undermine confidence in the American economy, in the American currency. This will cause very serious damage. In general, the US will lose its reputation as a good payer,” Grigoriev noted.
He expressed doubt that the Republicans would take such a risk just to drastically weaken the position of the Democrats and deprive them of a chance in the elections. Bullish game: how serious is the threat of default in the US And will the Republicans and Democrats be able to solve the problem of public debt before June
The day before, US President Joe Biden said that he does not exclude the possibility of a short-term increase in the ceiling of the US public debt. He also said that a possible default would be devastating to the US economy.
At the end of April, the House of Representatives of the US Congress passed a Republican bill to raise the national debt ceiling. The document provides for an increase in the ceiling of the country’s public debt by $1.5 trillion and limiting further growth in government spending at a rate of no more than 1% annually, RT reports.
On May 2, the White House announced that Biden would not negotiate with Congress to prevent a default. The press service stressed that default prevention is a constitutional duty of Congress, and under former President Donald Trump, the debt limit was raised three times.
Prior to this, on April 22, the Politico newspaper reported that some representatives of the administration of the American leader were alarmed about the threat of a default on the US economy due to the lack of negotiations on raising the national debt ceiling between the President and Speaker of the House of Representatives Kevin McCarthy.