Italy says US default threatens to escalate in Ukraine

The sanctions imposed by the West on Russia and the provision of military support to Ukraine have a negative impact on Western countries. About it declared in the Italian edition of Money.it.

According to observers, the failure of restrictions against Moscow and the collapse of the US economy threaten to escalate the conflict in Ukraine. The rise of China is also exacerbating the current situation.

The publication drew attention to the fact that Washington is facing a record public debt, including due to efforts to support Kyiv. In the event that the debt ceiling is not raised, the “risk of a catastrophic default” will be, in the opinion of journalists, quite real.

“The risk of a default in the United States can influence the development of the conflict (in Ukraine) more than missiles or tanks,” – quoted in the publication the words of the head of the US Treasury Janet Yellen.

In January, the United States exceeded the $31.4 trillion ceiling on public debt, which forced the Treasury to use emergency measures to continue financial operations. US President Joe Biden has repeatedly demanded an expansion of debt limits without conditions. Republicans, who control the lower house of Congress, attribute the increase in the ceiling to the adoption of a program of radical budget cuts, which the White House does not agree with.

On March 22, US Treasury Secretary Janet Yellen said that if a default occurs in the United States, international partners will no longer trust the country. Prior to this, Yellen said that the United States is in danger of default due to the financial crisis. US President Joe Biden, in turn, accused the Republicans of trying to lead the United States to default.

On April 27, the House of Representatives of the US Congress passed a law to increase the national debt ceiling by $1.5 trillion, while providing for a reduction in budget spending by $4.5 trillion, as well as limiting the growth of government spending.

The bill caused fierce debate in the parliament itself, as well as fierce criticism from the administration of US President Joe Biden. The reason for the conflict is that in previous years, Congress increased the maximum amount of public debt without any additional conditions. However, the new House of Representatives under Kevin McCarthy refused to do so, insisting instead on the need for spending cuts.

On May 10, former US President Donald Trump said that Republicans need to allow the state to default if they cannot get the White House to agree to massive spending cuts.