Biden warns U.S. moving closer to debt default

U.S. President Joe Biden said he couldn't guarantee the debt ceiling would be raised in two weeks as he slammed Republicans for opposing efforts to keep the nation from being unable to pay its debts for the first time in its history.

In a speech from the White House, Biden put the blame on Republicans for refusing to join with Democrats in raising the debt limit to pay for debts incurred in the past. Congressional Republicans are steadfastly refusing to supply any votes to raise the debt limit, Biden said they should vote on bipartisan basis to pay for bills for which both parties are responsible.

"Not only are Republicans refusing to do their job, but they're threatening to use their power to prevent us from doing our job -- saving the economy from a catastrophic event. I think quite frankly it's hypocritical, dangerous and disgraceful," Biden said.

Biden said: "Republicans say they will not do their part to avoid this needless calamity. So be it. But they need to stop playing Russian roulette with the U.S. economy."

Congress has until October 18 to increase the country's borrowing limit, Treasury Secretary Janet Yellen warned lawmakers last week, a date that is now just two weeks away. When asked by a reporter if he could guarantee the US won't hit the debt ceiling, Biden said, "No I can't - that's up to Mitch McConnell. ... I can't believe that that would be the end result, because the consequences are so dire. I don't believe that, but can I guarantee it? If I could, I would, but I can't."

"A failure to raise the debt limit will call into question Congress' willingness to meet our obligations that we've already incurred - not new ones - we've already incurred. This is going to undermine the safety of US Treasury securities and will threaten the reserve status of the dollar as the world's currency, that the world relies on," CNN cited Biden as saying.  

The President continued: "The American credit rating will be downgraded, interest rates will rise for mortgages, auto loans, credit cards, and borrowing."