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With the warning from the United States about the urgent need to raise the debt ceiling to prevent that country from defaulting, the summit of the G7 economic powers began in the city of Niigata.
The alarm was set off by the Secretary of the Treasury of the United States, Janet Yellen, when she declared to the international press that there is no alternative if they want to prevent a default on their payments, which would be unprecedented in the recent history of the main world power. .
Yellen’s warning went further by foreshadowing the risk of an eventual “economic and financial catastrophe”, in her own words, if the increase in said cap is not approved by the legislature. His statements inevitably turned the spotlight on this problem in the economic world, while the specter of a possible crisis haunts Washington.
The United States, which is making efforts to recover its economy after the Covid 19 pandemic, would face the loss of thousands of jobs, the fall in the income of American families and the deterioration of credits, according to the description made by Secretary Yellen.
The G7, also made up of Japan, Germany, the United Kingdom, France, Italy and Canada, had issues such as the economic impact of the war in Ukraine and measures to control inflation, among others, on its discussion agenda.
The initial declaration of the United States and its warnings about a possible default constitute a kind of notification to the Congress of that country, about the seriousness that refusing to raise the debt ceiling would imply. For the White House “there is no reason to create a crisis caused by ourselves.”
For this reason, the Treasury took advantage of this international scenario to urge, once again, the political leaders in Congress to reach an agreement soon that removes the specter of a default, a few days before the legal deadline to extend it.
With EFE and Reuters
