US debt: “How do we see the rest of the world?”

How to brag about an America that wins when you’re at risk Bankruptcy? Joe Biden, A Political Debt CrisisHowever, Japan will try to consolidate its international alliances against Beijing. “It’s hard to ‘compete with China’ when you’re too busy sinking your own ship. How are we doing for the rest of the world?” tweeted Evan Feigenbaum, an Asia expert at the Carnegie Endowment for International Peace and a former State Department official.

Talking about economic unity against Russia and China is complicated, “The biggest problem (risk) facing the rest of the G7 countries in the immediate future is a default on US payments,” says Josh Lipsky of the Atlantic Council Research Center. .

The US president will leave on Wednesday for the G7 summit in Hiroshima (Germany, Canada, the US, France, Italy, Japan and the United Kingdom), but had to skip a trip to Papua New Guinea and go to Australia, it is reassuring. Can be on all nodes. “The nature of the president is to manage a million critical issues at once, and I am confident that we will continue to move forward to avoid default and fulfill America’s responsibilities as a driving force internationally,” he said Tuesday.

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Having launched his campaign for 2024, he is also missing out on a successful diplomatic tour here before plowing the ground in the US. Instead, the 80-year-old Democrat will return to Washington on Sunday to resume talks with the parliamentary opposition on something that is difficult to understand from abroad: Congress must vote on whether to raise the cap. Without it, the US could default on June 1. That means not being able to pay wages, pensions and social benefits and what they owe to creditors. never seen

A historic visit to Papua New Guinea, an island nation in Oceania whose strategic importance is at stake, has been canceled at the same time as tensions between the US and China have soured over Taiwan. A trip to Australia for a partner invested in a very ambitious submarine project was also forgotten. Finally, he missed the scheduled meeting in the spectacular setting of the Sydney Opera House, with the leaders of the Quad, a diplomatic format that particularly twists Beijing (US, Australia, Japan, India).

Democracy and Autocracy

The truncated journey has been confusing for a president who has repeatedly said that democracies must be efficient, responsive and pragmatic to prevail against autocracies. How to express this argument when Democrats and Republicans are divided by a parliamentary process that routinely forces the U.S. Congress to raise the maximum public debt ceiling? And when does the debt of the world’s largest economy depend on complicated budget battles?

All G7 states show serious public debts relative to GDP – starting with host country Japan, which holds a world record for debts relative to GDP – but none face this kind of political turmoil.

(AFP)Show comments