https://sputnikglobe.com/20230519/us-debt-ceiling-issue-to-undermine-g7-capacity-in-shaping-world---biden-official-1110451884.html
US Debt Ceiling Issue to Undermine G7 Capacity in Shaping World - Biden Official
US Debt Ceiling Issue to Undermine G7 Capacity in Shaping World - Biden Official
Sputnik International
The situation regarding the United States debt limit and the potential for the US government to default on its financial obligations undermines the ability of the G7 countries to shape the world, a senior Biden official said.
2023-05-19T02:51+0000
2023-05-19T02:51+0000
2023-05-19T02:46+0000
economy
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people's republic of china
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The official pointed out that the debt ceiling brinkmanship undermines the United States' leadership in the world and the ongoing centrality of the US financial system in the global economy by calling into question the full faith and credit of the Treasury. US President Joe Biden and Republican lawmakers are currently engaged in ongoing negotiations to reach a deal to raise the debt limit before the US government risks defaulting as early as June. Debt ceiling talks have been ongoing for months but only within the last few weeks have matters intensified with both parties appearing to make some movement to a looming deal; however, an official confirmation has not yet been made.The US has been operating under "extraordinary measures" since January, emergency efforts that Treasury Secretary Janet Yellen has indicated will begin faltering as early as June 1. The Biden administration official further told reporters that Biden's trip will see the US commander-in-chief reaffirm American commitment to nuclear non-proliferation, as well as show a "historic degree of unity" on the People's Republic of China. It was also noted that the Group of Seven would be using the opportunity to unveil over 300 Russia-related sanctions in addition to blacklisting entities. Some of which have already been announced."The United States will be rolling out a substantial package of our own ... Among other things, this involves extensively restricting categories of goods key to the battlefield and also cutting off roughly 70 entities from Russia and third countries from receiving US exports by adding them to the Commerce blacklist," the official told reporters.The US will also announce "upwards of 300 US sanctions" against individuals, entities, vessels and aircraft across Europe, the Middle East and Asia, targeting sanctions circumvention and other actors helping to support Russia’s operation in Ukraine, the official said.However, sanctions wouldn't be all officials would be discussing, according to the unidentified senior official who further indicated parties would undertake measures to cut reliance on Russian energy and isolate Russia economically.In addition, the leaders will reaffirm their commitment to upholding the price cap on Russian oil, including through effective monitoring enforcement, while also avoiding spillover effects and maintaining global energy security, the official stated.
https://sputnikglobe.com/20230518/g7-hiroshima-summit-fading-bloc-sticking-to-its-guns-to-contain-china-russia-1110444787.html
https://sputnikglobe.com/20230517/wests-price-ceiling-caves-in-russian-oil-exports-hit-post-february-2022-high-1110419698.html
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US Debt Ceiling Issue to Undermine G7 Capacity in Shaping World - Biden Official
WASHINGTON (Sputnik) - The situation regarding the United States debt limit and the potential for the US government to default on its financial obligations undermines the ability of the Group of Seven (G7) countries to continue shaping the world, a senior Biden administration official told reporters.
The official pointed out that the debt ceiling brinkmanship undermines the United States' leadership in the world and the ongoing centrality of the US financial system in the global economy by calling into question the full faith and credit of the Treasury.
"All of those things reduce America's capacity to lead, reduce our ability to do things like deliver tough sanctions of the kind that we will deliver tomorrow, which are predicated on that ongoing centrality of the US financial system and will, as a result, undermine the capacity of the G7 to really continue shaping the world and deliver for its own citizens, but also citizens of the world more broadly," the official said.
US President Joe Biden and Republican lawmakers are currently engaged in ongoing negotiations to reach a deal to raise the debt limit before the US government risks defaulting as early as June.
Debt ceiling talks have been ongoing for months but only within the last few weeks have matters intensified with both parties appearing to make some movement to a looming deal; however, an official confirmation has not yet been made.
The US has been operating under "extraordinary measures" since January, emergency efforts that Treasury Secretary Janet Yellen has indicated will begin faltering as early as June 1.
Biden will participate in the G7 Leaders' Summit in Japan this weekend, but postponed his trips to Australia and Papua New Guinea in light of the US debt ceiling crisis.
Biden’s trip to Japan was supposed to be part of a broader visit to the Indo-Pacific region, which included stops in Papua New Guinea and Australia.
The Biden administration official further told reporters that Biden's trip will see the US commander-in-chief reaffirm American commitment to nuclear non-proliferation, as well as show a "historic degree of unity" on the People's Republic of China.
"I do think what you will see is, again, a historic degree of unity across the G7, across a range of issues but importantly, on the People's Republic of China, as well," the official said when asked about the communique's language regarding China.
It was also noted that the Group of Seven would be using the opportunity to unveil over 300 Russia-related sanctions in addition to blacklisting entities. Some of which have already been
announced.
"The United States will be rolling out a substantial package of our own ... Among other things, this involves extensively restricting categories of goods key to the battlefield and also cutting off roughly 70 entities from Russia and third countries from receiving US exports by adding them to the Commerce blacklist," the official told reporters.
The US will also announce "upwards of 300 US sanctions" against individuals, entities, vessels and aircraft across Europe, the Middle East and Asia, targeting sanctions circumvention and other actors helping to support Russia’s operation in Ukraine, the official said.
"We’ll also expand our sanctions authorities to additional sectors of the Russian economy key to its military industrial complex and impose new bans to prevent Russia from benefiting from our services," the official added.
However, sanctions wouldn't be all officials would be discussing, according to the unidentified senior official who further indicated parties would undertake measures to cut reliance on Russian energy and isolate Russia economically.
In addition, the leaders will reaffirm their commitment to upholding the price cap on Russian oil, including through effective monitoring enforcement, while also avoiding spillover effects and maintaining global energy security, the official stated.
The G7 meeting will be hosted from May 19-21, and see a trove of global leaders and dignitaries descend on Hiroshima, which has already seen groups protesting against the event.
