China Probably ‘Rooting’ for United States to Default, Former Biden Spokeswoman Says
World leaders are watching debt-ceiling talks, Psaki says
China's government likely is “rooting” for the ongoing, high-stakes negotiations over raising the federal debt ceiling to fail and result in an unprecedented default, according to President Biden's former spokeswoman.
Talks between House Republicans and Biden's representatives restarted Friday night after a six-hour pause when Republicans walked away from the talks.
Republicans and Democrats’ talks are on a very serious clock as the federal government races towards that so-called “x date” of June 1 when it will no longer be able to pay its bills and fall into default.
Such a first-ever default by the US government would trigger a widespread economic meltdown.
Although Congress has approved an increase in the government's debt limit dozens of times under presidents of both parties in past decades, McCarthy and other House Republicans want to hold such an increase hostage to President Biden and Democrats agreeing to a raft of draconian cuts in federal spending.
With Biden in Japan the last several days for the major G7 meeting of world leaders, all eyes of those in foreign governments are watching how the government in the United States operates, and that includes the ongoing debt-limit debate, according to Jen Psaki, Biden's former press secretary who is now a host on MSNBC.
“What’s important for people to understand is that when the president of the United States is at a summit, or even when he is not, all of these word leaders and their teams are watching what’s happening in the United States,” she said. “Is democracy going to last? Are they going to default? All of that makes the United States look weak on the world stage. And if you’re China, you’re probably rooting for a default, right? For them.
“So, for the president, he is there to project strength. The United States is back at the table. But these negotiations, this being tricky and unresolved at home, is not great,” Psaki added. “And that’s important for people — Republicans, Democrats to really understand.”
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