Senator Minority Leader Mitch McConnell, President Joe Biden. Chip Somodevilla/Getty Images. Alex Wong/Getty ImagesBiden brushed aside GOP threats regarding the debt ceiling Wednesday.He told reporters, "Nope. They're not going let us default."Given that Republicans refuse to increase the debt limit, both parties could be in trouble.Check out more stories from Insider's business page.President Joe Biden rejected threats from Republicans that they wouldn't reach a deal to raise the debt ceiling. This is a new sign that both sides are at the brink of major conflicts that could lead to default.He told reporters, "Nope. They're not going let us default." "$8 trillion is under the watch of the Republicans."Biden's comments come just a day after 46 Senate Republicans signed a pledge by Sen. Ron Johnson (Wisconsin) pledging they would not help Democrats lift the debt ceiling. This was something that the GOP did under President Donald Trump but now says Democrats should do it themselves using a process known as reconciliation.The letter stated that "We should never default on our debts in any circumstance." "If Democrats threaten to default, it will be because they refuse vote for the debt ceiling rise necessitated through their own irresponsible expenditures."Only four Republicans withheld signatures: Senators. Lisa Murkowski, Susan Collins, John Kennedy, Louisiana, Richard Shelby, Alabama.Democrats intend to push a $3.5 trillion spending program through reconciliation. This allows bills to be passed with only a simple majority, instead of the 60 votes required in the Senate. The Democratic plan is still in its infancy and doesn't include any debt limit increases. Although it is possible to do this in reconciliation, it could cause problems for Democrats' legislative agenda.Janet Yellen, Treasury Secretary, recently called on Congress to raise the debt limit in a bipartisan manner. Because Congress missed the July 31 deadline to raise or suspend debt limits, the Treasury Department is financing federal operations with its emergency powers. Treasury could run out of cash in October or next month. Failure to act by Congress before this point could lead to a catastrophic default.Continue the storyThe debt limit is not raised to allow for more federal spending. Instead, it allows the government pay its debts and other financial obligations.Senate Minority Leader Mitch McConnell is the Republican who insists that the GOP delegate this task to Democrats. In return for their support, Republicans want spending cuts.He said Tuesday that if they want 50 Democratic votes in lockstep to spend trillions or more, they can find fifty Democratic votes to finance them. "They don't need our support if they don’t want the input of Republicans." It could not be easier."Chuck Schumer, Senate Majority Leader, didn't rule out Wednesday's passage of a debt-hike with only Democratic votes. He agreed with Biden, saying he believes Republicans won't cause a financial crash.Schumer stated at a press conference that "It is unbelievable that Republicans would allow the country to default." "It has been bipartisan with respect to the debt ceiling. Trump was the president when I believe Democrats joined him in raising it three times.Business Insider has the original article.
