Chinanews.com, October 6th. According to the US Chinese website, the United States is facing a potential crisis of debt default for the first time in history. Senate Democrats plan to vote on the 6th local time to suspend the US debt ceiling. However, Republicans have made it clear Indicates that the vote will be prevented from passing.
Senate Republican leader McConnell said on the 5th that Republicans in the Senate would once again block the vote.
McConnell urged Democrats to use a more sophisticated method to raise the debt ceiling on their own, while Democrats believe that this method is not feasible.
"They have time to do this. The sooner they do it, the better," McConnell said at a press conference.
Without a clear solution, Congress may push the US government into an unprecedented debt default, which analysts say will undermine the global financial system, increase borrowing costs, and destroy millions of jobs.
US Treasury Secretary Yellen stated that if Congress does not increase the 28.4 trillion yuan in borrowing authority by then, the government will exhaust its borrowing capacity around October 18.
Democrats control both houses of Congress with a narrow advantage. The House of Representatives voted last week to suspend the debt ceiling until the end of 2022.
However, Democrats need the support of at least 10 Republicans to remove procedural obstacles in the Senate, and Senate seats are evenly matched between the two parties.
Republicans blocked two other efforts to raise the debt ceiling last week.
"If Republicans want to vote against it tomorrow, if they really want to be the defaulting party, that's their choice," Schumer said in a Senate meeting.
"They have a chance to show that they are still responsible. It's not too late. But the danger is approaching."
Republicans said that this task should be the responsibility of the ruling party.
If they succeed in forcing Democrats to raise the debt ceiling on their own, this issue is likely to become the handle for attacking Democratic candidates in the 2022 congressional mid-term elections.
McConnell called on Democrats to use a process called budget coordination, which does not require Republicans to vote for it.
Biden and Schumer rejected the procedure, arguing that it was too complicated and risky, and warned that unless Republicans changed their course, they would face economic disaster.
But Schumer did not rule out this possibility at a press conference on the 5th.
Democratic Senator Chris Van Hollen said the Democrats have other options, but he declined to elaborate.
He said: "We will find a way to complete it."
Even if the upper limit is resolved at the last minute, it may cause damage.
In 2011, there was also a debt ceiling dispute. Congress finally reached an agreement two days before the debt ceiling expires, but this still caused stocks to plummet and prompted the first decline in the credit rating of US debt.