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President Joe Biden spoke Wednesday about the prospect that the government could go into default if Congress does not approve raising the debt ceiling before October or November.
Asked by a reporter if he is concerned about that problem, Biden replied that he is not, and expressed his confidence that the Republican opposition will relent in its refusal to raise the country’s debt ceiling.
“They (the Republicans) are not going to let us go into default,” the president assured.
However, the country’s debt is currently about to exceed 100% of the GDP, something that has not happened since the Second World War, largely as a result of the latest extraordinary spending measures led by the Democratic administration.
The Treasury Department implemented “extraordinary measures” as of August 2 to prevent the administration from defaulting on its obligations, such as suspending the sale of bonds, the means by which the United States finances its debt.
These measures are expected to allow the United States to have capital until October or November, when the feared sovereign debt default would occur, according to a July analysis by the Congressional Budget Office.