US authorities are not yet ready to invoke the 14th Amendment to the Constitution to prevent the country from defaulting on sovereign public debt payments. However, further discussion of such a measure is possible, opens The words of President Joe Biden to Bloomberg.
The president of the United States did not exclude the possibility of discussing this measure on the eve of a meeting with Speaker of the House of Representatives Kevin McCarthy. Negotiations will take place next week. The article states that if this measure is approved, then the country’s authorities may continue to increase the debt, citing the Constitution’s provision stating “there is no room for doubt” of the validity of public debt.
“I haven’t gotten there yet (before discussing the possibility of referencing the 14th Amendment to the US Constitution – socialbites.ca),” Biden said.
At the same time, the US President’s assumption of such a possibility shows that the White House administration’s view of such a scenario is slowly starting to change. However, the biggest obstacle to adjudication of such a measure is the risk of further litigation regarding the legality of such a decision, the article concludes.
On May 4, the TASS agency cited analytical material from the Council of Economic Advisers at the White House. reportedThat a prolonged default in the US could lead to a 6.1% drop in the country’s GDP. Also, in such a scenario, the state’s economy would lose 8.3 million jobs.