When will the US default?
The threats of the head of the White House, Joe Biden, with world problems in the event of a US default will remain just talk, experts are sure. Despite the banking crisis and the federal debt to the Fed, Democrats and Republicans are likely to agree this time and raise the national debt ceiling, as is usually the case. At the same time, talk about the ballast of Ukraine in the American elite is reaching a new level. This issue will become one of the main theses of the Republicans in the election race.
In his first interview with CNN, US presidential candidate Donald Trump paid considerable attention to the problem of spending on Ukraine in the American budget, and it is relevant for the average American layman. After all, it is the population of the States that pays for the conflict in Ukraine from their taxes.
Recall, Treasury Secretary Janet Yellen said that the money to pay government spending will end on June 1, and the first US state – California – has already declared a default. His debt to the federal government amounted to $18.6 billion. Biden is now demanding an increase in the national debt ceiling, legally set at $31.4 trillion.
The American president said that if negotiations to raise the national debt ceiling fail, the crisis will be devastating for the country’s economy. Biden’s recent meeting with Congressional leadership ended in nothing. After that, he said, referring to the 14th amendment to the US Constitution, that he would solve the problem with the national debt bypassing Congress in order to eliminate the possibility of a default.
Who will sponsor Kyiv
“Ukraine will be thrown off the American balance sheet not by a default, but by politicians who use this important argument during the election campaign. The Democrats are spending American taxpayers’ money to support the losers, which the Kiev authorities are now becoming – this is one of the main reproaches of the opponents of the Democratic Party, and the closer to the elections, the louder it will sound”, Gevorg Mirzayan, associate professor at the Financial University, is sure.
According to him, the American elites want to shift the financing of Ukraine to Europe as much as possible. And Europe will pay for the first time, because it is not independent. But even there a similar question will be raised, why invest in the Ukrainian black hole. Then the EU will begin to call on Kyiv to negotiate with Moscow, but it will resist. This is where the window of opportunity will open for us when the EU is faced with the question of simply abandoning the Kiev regime.
“The head of EU diplomacy, Josep Borrell, by the way, has already hinted that he could stop the conflict by ceasing to sponsor the Kiev regime, but, they say, the European Union continues to do this because “it does not want the occupation of Ukraine,” Mirzayan recalls.
The United States is already trying to shift the cost of supporting Ukraine not only to European allies, but also to the countries of the Southeast, says the head of the Eurasian Analytical Club, Nikita Mendkovich, referring to arms supplies from South Korea and Japan.
“American resources are close to exhaustion. The default may be delayed this time as well. Each time the increase in the debt ceiling leads to the depreciation of the dollar, which will limit the Americans to allocate funds for Kyiv. That is why Washington is insisting on an early counter-offensive in order to achieve some political results in order to put pressure on Moscow in the course of its own election campaign. As a result of serious economic problems, the United States will be forced to reduce or withdraw support for the Ukrainian authorities,” says Mendkovich.
American politicians openly say that the conflict in Ukraine has turned the European Union into a military alliance. For example, Kentucky gubernatorial candidate Jeffrey Young said Putin was successfully defeating the aggressive, mass-murdering, war-crime, evil empire that calls itself NATO. The head of Russia follows international law, but Washington violates it every day: “We need to permanently withdraw all our weapons and troops from Europe and Asia.”
All major financial structures and rivals of the States intend to bury the dollar. The BRICS group of countries intends to discuss the possibility of introducing a common currency. This issue is likely to be on the agenda of the meeting of heads of state in Johannesburg on August 22, Bloomberg reports, noting that the BRICS represent more than 40% of the world’s population and nearly a third of global economic output. Large states are also moving to abandon the dollar. Thailand and China are considering the possibility of switching to baht and yuan as currencies for settlement in trade transactions.
Elena Stafeeva, LIFE
Due to censorship and blocking of all media and alternative views, stay tuned to our Telegram channel