President Joe Biden stated during the G7 conference that he had spoken with all four congressional leaders beforehand about the necessity of a bipartisan agreement.
The Republican approach, according to Biden, cannot be accepted. Biden directly referred to crypto when he said he wouldn’t accept a debt solution that protects wealthy tax cheats and crypto traders while jeopardizing food help for a million Americans.
By June 1st, if the US government hasn’t increased its debt ceiling, a default will take place. Ahead of time, US Treasury Secretary Janet Yellen issued a dire warning that failure to reach an agreement would send deadly ripples through the US and global economy.
The debt ceiling, also known as the debt limit or statutory debt limit, is the maximum amount of money that the U.S. government can borrow by issuing bonds. It was established by Congress in 1917 under the Second Liberty Bond Act to streamline the borrowing process.
The US financial markets would crash if the US went into default on its debt, which would result in the loss of millions of jobs and the deferral of pension payments.
However, the value of Bitcoin would surely increase if the United States were to default on its debt. Gold, U.S. Treasurys, and Bitcoin were ranked as the top three assets that would serve as safe havens in the most recent Markets Live Pulse survey by Bloomberg if the United States were unable to raise its debt ceiling and defaulted on its commitments.
To criticize the Republican Party’s proposed budget, Joe Biden has already targeted cryptocurrency investors. Joe Biden previously declared that they would vote against tax breaks that favor wealthy crypto investors to the tune of $18 billion.
Balaji Srinivasan, a well-known investor and former CTO of Coinbase, is back in the news following his audacious Bitcoin prediction. Vivek Ramaswamy has begun taking Bitcoin to gather funds for his 2024 presidential campaign.
If the United States defaults on its debt commitments, many have warned that there will be severe consequences, including a worldwide financial disaster. Top executives from 146 significant U.S. corporations have asked Biden and congressional leaders to take immediate action to avert a U.S. default and warned of “disastrous consequences.” In addition, some think that a U.S. default would jeopardize the dollar’s position as a reserve currency.
Donald Trump, a former president who is running for president in 2024, has advised Republican legislators to allow the United States to default on its debt if the Democrats refuse to accept budget cutbacks. He responded, “We’re spending money like drunken sailors right now, so it’s better than what we’re doing.”