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WorldAsiaUS debt ceiling crisis accompanies Biden to G7 summit

US debt ceiling crisis accompanies Biden to G7 summit

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Bruce Reid, who was seen in a tracksuit having a late breakfast at the luxury hotel where Biden is staying during the G7 summit, is the White House deputy chief of staff who tracks domestic issues.

For the past two days, he has not left the 80-year-old Democratic president in this southern Japanese city, “and he was briefing him on the progress of the talks”, in the words of one of the senior officials.

According to an AFP report, the evolution of these “talks” – the White House demanding an extension of the government’s power to borrow annually to avoid default in the United States while the Democratic Republicans demanding that they first pledge to limit spending – is something everyone is present. at the G7 summit wanted to see on him.

“It’s certainly an interesting topic here at the G7 summit,” National Security Adviser Jake Sullivan told reporters on Saturday.

Sullivan added that the debt ceiling talks did not “cause anxiety or any kind of commotion in the halls” of the summit.

Information officer Karen Jean-Pierre said the situation “does not lead to a state of panic”.

But these assurances contradict repeated warnings from the White House.

“Republicans are holding the economy hostage and pushing us to the brink of default, which could cost millions of jobs and plunge the country into recession after two years of steady job and wage growth” , Ben LaBolt, Biden’s press secretary, said Saturday. .

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p class=””>Cautious atmosphere

Biden spent the entire summit wary. On the one hand, he wants the whole world to know that everything will be fine. On the other hand, he seems very worried.

The crisis prompted Biden to cancel half of his planned trip to Asia, allowing him to board Air Force One and return to Washington on Sunday.

This resulted in the cancellation of what would have been the historic first visit by a sitting US president to the remote island of Papua New Guinea, in addition to a diplomatic milestone for a four-party regional meeting. in Australia.

Biden also missed most of the Group of Seven dinner on a scenic island near Hiroshima on Friday.

The White House said Biden was returning to his hotel to speak to negotiators in Washington, where it is morning. He got an idea of ​​what was going on in a video meeting as the negotiating team wrapped up the night before and spoke to them again by phone on Saturday.

“He is informed every day of the evolution of events… several times a day,” said Jean-Pierre.

When asked by reporters on Saturday if he was worried, Biden replied, “No, not at all.”

“a little problem”

The G7 meeting in Japan is a milestone for Biden’s goal of restoring American leadership in the world’s democracies, especially when it comes to confronting Russia in its war against Ukraine.

The originally planned visits to Papua New Guinea and Australia were meant to underline the trip’s other purpose, which was to present a united front against the rise of communist China.

So the last thing the White House wants are headlines like the one from the Washington Post recently, “World watches in shock and panic as US edges closer to default.”

And it is not just the paralysis that could afflict Washington and cause concern among American partners. There’s the year 2024 and Biden’s re-election bid.

His main rival at the moment is none other than former President Donald Trump, who seems indifferent to the risk of default on US debt.

“Don’t back down!!!,” Trump wrote to Republicans on social media on Friday. “Republicans shouldn’t make a debt ceiling deal unless they get everything they want,” he added.

In a bilateral meeting with Australian Prime Minister Anthony Albanese on Saturday, Biden said: “I apologize for having had to meet you here instead of coming to Australia.”

“We have a little problem in the United States,” Biden added.

Albanese was understanding and told him, “I would have done the same. Domestic political issues are actually the most important.”

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Arab Desk
Arab Desk
The Eastern Herald’s Arab Desk validates the stories published under this byline. That includes editorials, news stories, letters to the editor, and multimedia features on easternherald.com.

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