McCarthy on Debt Dispute: US Government Backs Down That’s why rental car companies are taking action against the “last generation”.

“The White House is going backwards in the negotiations,” the Republican majority leader in the US House of Representatives wrote on Twitter Saturday night (local time).

“Unfortunately, the socialist wing of the Democratic Party seems to be in control, especially now that President Biden is not in the country.”

Democrat Joe Biden’s administration denied the allegations in a statement released shortly after. Republican negotiators presented a bid that contained some extreme partisan demands that were never passed by the US House. This would have taken them a big step away from an agreement. The White House accused the Republican leadership of feeling indebted to their party’s right wing, which is pursuing bankruptcy.

Such a default by the US government threatens as early as early June if Biden’s team does not reach an agreement with the Republicans in Congress on an increase in the debt ceiling by then. In the US, parliament sets such a limit at irregular intervals and thus determines how much money the state can borrow. This time, the proceedings have degenerated into bitter partisan bickering, which is dangerous not only for the US: a bankruptcy of the world’s largest economy could trigger a global financial crisis and economic downturn.

The domestic political discord even put Biden’s participation in the G7 summit in Japan on the edge at times. In the end, he only canceled the second part of his trip abroad – a visit to Papua New Guinea and Australia – to return to Washington on Sunday directly after the Hiroshima deliberations. (sda/dpa)