The Biden administration on Wednesday raised its debt limit with parliament as the Pentagon warned that defaults could cause a national security crisis and said the president risked bringing the market down and liquidating the ‘pension saving. Strengthening the driving force to do so.

“It’s about paying what we owe and preventing catastrophic events,” President Joe Biden told some of the country’s chief executives.

He spoke shortly after Secretary of Defense Lloyd Austin issued his own warning.

“If the United States defaults, it will undermine the economic strength that sustains our national security,” he said.

“It will also seriously harm our service members and their families, because as secretary we ensure that our service members, civilians or contractors will be paid in full or on time. Because you don’t have the authority or the ability to do it.

The move comes when White tries to pressure Senate Minority Leader Mitch McConnell to fall into the current deadlock over the debt ceiling.

Treasury Secretary Janet Yellen has repeatedly warned that the United States will face a recession if it fails to find a solution by October 18.

But Republicans say if they want to raise the cap to $ 28.4 trillion and fund Biden’s massive spending plan, Democrats must do it alone.

Biden blamed the fact that his opponent was playing Russian roulette in the economy when he tried to explain the real influence of the default.

A default that Yellen says could occur any day after October 18 means Social Security benefits will be suspended, ”he said.

“Military salaries will cease. The benefits for veterans stop, and much more.

“Failure to raise debt limits will jeopardize the security of US Treasuries, threaten the dollar’s reserve status as a dependent global currency, degrade US credit status, and raise family interest rates. Let’s talk about mortgages, auto loans and credit cards.

President Joe Biden will meet with bank executives on Wednesday to pressure Senate Minority Leader Mitch McConnell to fall into the current deadlock on the debt ceiling. On Tuesday evening, he said it was a “real possibility” for the Democratic Party to drop filibustering in its debt cap bill.

Meeting participants

• Citi, CEO, Jane Fraser

• Raytheon, CEO, Gregory Hayes

• Charlie Opler, president of the American Real Estate Agents Association

• AARP, CEO, Jo Ann Jenkins

• Adena Friedman, President and CEO of Nasdaq

• Deloitte LLP, Global CEO, Punit Renjen

• JP Morgan Chase, CEO, Jamie Dimon

• Intel, CEO, Pat Gelsinger

• Bank of America, CEO, Brian Moynihan

Biden meets with banking executives such as Jamie Dimon of JPMorgan Chase, Jane Fraser of City, Brian Moynihan of Bank of America, Jellen, Advisor Cedric Richmond and Commerce Secretary Gina Raimondo. low.

Biden and Senate Democrats are trying to avoid the threat of Republican obstruction and pass the same bill passed by the House of Representatives last week.

They have to go through something until Oct. 18 before the United States falls off the tax precipice.

The White House warned ahead of the meeting that failure to raise the cap could lead to an international financial crisis.

“Defects are likely to shock global financial markets, freeze global credit markets and plunge stock markets,” the Whitehouse Economic Advisory Board said in a new report.

“Employers around the world will likely have to start laying off workers. “

The President is also CEO of Lateon, Greg Hayes, President of the American REALTORS Association, Charlie Opler, CEO of AARP, Jo Ann Jenkins, President and CEO of Adena Friedman of NASDAQ and Global CEO of Deloitte. We welcome Punit Renjen, Intel CEO Pat Gelsinger and the White House. I told DailyMail.com.

If Americans start to miss Social Security payments, Jenkins will likely warn of the costs to the elderly.

According to the White House, the conference will be held face-to-face or virtually.

“These executives represent some of America’s most famous companies and industries and directly understand that defaults can be economically devastating. Endanger millions of jobs. It exposes our country to a recession and threatens the status of the dollar, causing lasting damage to America’s economic power. It degrades the credit rating of the United States as the currency the world depends on. ”House officials announced the meeting in preview.

So far, Biden hasn’t tried to use big business to compete with Republicans.

McConnell continues to resist all week that Democrats must use a more complex reconciliation process to pass debt bills using only Democratic votes.

Biden and Democrats argued the settlement process was too long and too risky.

Instead of going that route, Senate Democrats are now considering filibustering a debt cap bill.

“Oh, I think that’s a real possibility,” Biden told reporters of his plans upon returning from his trip to Michigan on Tuesday night.

Biden said he would speak to McConnell earlier Tuesday when he left Lansing, Michigan, but he did not say a day.

Jamie Dimon, CEO of JPMorgan Chase

Bank of America CEO Brian Moynihan

JPMorgan Chase CEO Jamie Dimon (left) and Bank of America CEO Brian Moynihan (right) are among the business leaders who will meet with Biden on Wednesday.

Republican swing votes Senators Mitt Romney and Susan Collins have previously said they will not cross the aisle to support the Democratic Party.

Deputy spokeswoman Karine Jean-Pierre said on Air Force One on Tuesday that the White House would have specific dates and deadlines urging Democrats to shift gears and pursue reconciliation bills to avoid economic catastrophe. He said it was not decided.

“We don’t have your date at the moment,” she told DailyMail.com.

“We will continue to be very, very clear,” she said. “As the President said yesterday, as you know, we have to take a step back and see how it was done 80 times, that was the bipartisan fashion … of the Trump administration. 3 times in between.”

“And we can’t play political football right now. We cannot play politics. We have to do it for the Americans, and that is the most important thing. That’s it, ”added Jean-Pierre.

McConnell and the Republicans are unlikely to convince the CEO, as there is still a rift between the party and some companies.

Intel was one of the companies that said it would not give money to Republicans who voted against the 2020 election.

The Nasdaq PAC suspended donations to the Republican Party for several months.

And Citi and JPMorgan Chase suspended all political contributions after the attack on Capitol Hill on January 6.

Biden says market is stagnating, Pentagon warns of national security crisis if debt limits are not raised

Source link Biden says market is stagnating, Pentagon warns of national security crisis if debt limits are not raised