Biden administration's failure will crash the international market - Famous economist Nouriel Roubini warns

Doha – US’s leading economist Nouriel Roubini warned that the Biden administration’s failure to take a firm decision on raising the debt ceiling could have serious consequences. He said this would lose confidence in the US dollar, and global markets would collapse. He added that the results will be seen on Wall Street in the next two weeks. This warning of Roubini, who predicted the economic recession in the world in 2008, including the United States, becomes very serious.

The US Congress has set a debt ceiling of as much as $31.4 trillion for domestic financial provisions. The Biden administration had exceeded the $31 trillion limit in October last year. Later, on January 19, 2023, it also surpassed the debt limit set by Congress. Against this backdrop, the US Treasury Department implemented special measures, which would expire in June or July.

It has been claimed that the severity of the financial crisis in the US will not decrease without increasing the limit. In this background, the Biden administration had been demanded to discuss this with the US Congress. Pushing the same debt ceiling cause, President Biden had left the G7 meeting in Hiroshima, Japan and returned home.

However, the Biden administration has been criticised for failing to raise the debt limit by discussing it with House Speaker Kevin McCarthy. Analysts had warned that a terrible financial crisis would hit the United States if it failed to find a solution. The news was also published, and President Biden blamed the Republican Party. Speaking at an economic meeting in Qatar’s capital, Doha, renowned economist Rubini targeted the Biden administration over the debt ceiling issue.

Rubini claimed little time was left to increase the debt limit, hence the need to attempt it quickly. He said that if the Biden administration fails to do so, the international market will collapse. In addition, Roubini also warned that the deteriorating economic relations between the US and China would be a challenge for the world economy in the coming year. Economist Roubini added that after the G7 meeting in Japan, relations between the US and China will worsen, and the Cold War between the two countries will intensify.

Moreover, Roubini criticised the US dollar for losing its influence in the international market. He said that the US financial crisis would affect the use of the dollar as a reserve currency. Roubini warned that the demand for an alternative to the US dollar would intensify. Roubini reminded that major countries worldwide have been promoting dollar-free trade for the past few days. Also, Rubini pointed out that investors worldwide closely watch the discussions between the Biden administration and US Congress. A few days ago, US Treasury Secretary Janet Yellen also expressed concern over the debt ceiling issue. Yellen had warned that the US could not default on its debt after June 1.

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