Negotiations between Biden and House Speaker fail

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Another attempt by US President Joe Biden, who is trying to get approval from Parliament to increase the debt, has failed. Biden had a long conversation with House Speaker Kevin McCarthy on Monday night, but no solution could be found. According to press reports, the Biden administration now has only 10 days left. In these ten days, he will have to persuade the Republican Party to pass the new loan bill at any cost. If this cannot happen, the government cannot make any payments. Technically it can be called insolvent or defaulter.

According to the report, the political tension between Democrats and Republicans may also have an impact on the US stock market. Many questions are arising in the mind of the investors. There is also a risk of reduced cash flow. The conversation between Biden and McCarthy may not have been fruitful, but both kept saying in front of the media that every problem would be resolved.

Expenditure exceeds income

According to the experts, the reason for this situation in America is more expenditure than income. They say that the US government has been spending more than the income from taxes etc.