President Joe Biden says that if the United States were to default on its state debt, it would cause economic problems for all countries around the world. He emphasized the importance of preserving the country's trusted partnership status by avoiding default, which has significant implications for the global economy.
During his address on state debt in New York, Biden stated, "If we default, the whole world will feel the consequences." The President also mentioned that there are numerous discussions underway to protect the large loans the United States has taken on with great difficulty, as a reliable partner. "This is not only important for the US economy but also for the world. We cannot afford to lose millions of jobs and the country's global position because of a recession," - he added.
In a letter sent to congressional leaders on May 1, US Treasury Secretary Janet Yellen stated that if the debt limit is not increased, the government will exhaust its resources by June 1. In such a case, the United States would default on its state debt by the end of this summer.
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