US debt default would impact military readiness, morale: top US general
Reuters
Published May 25, 2023 01:52PM ET
WASHINGTON (Reuters) - A debt default would deal significant, unambiguous damage to US national security, negatively impacting military readiness, morale and its capabilities, the top US general told a news conference on Thursday.
"I think there's no doubt whatsoever that there would be a very significant negative impact on the readiness, morale and capabilities of the United States military if we defaulted and didn't reach a debt ceiling thing," said Mark Milley, chairman of the Joint Chiefs of Staff.
"I think it would be very, very significant without a doubt in that absolutely clear, unambiguous implications on national security."
President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy were edging closer on Thursday to an agreement on raising the country's $31.4 trillion debt ceiling, according to a person familiar with the talks.
But some hardline House Republicans have pushed back against any compromise deal and insist any agreement must include sharp spending cuts.
The US Treasury has warned it could run short of funds to cover all its expenses as early as June 1, triggering a economically catastrophic default unless Congress reaches a deal.
Economists say that a default would be economically devastating, shaking financial markets worldwide, pushing borrowing costs high and provoking a deep US recession with soaring unemployment.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.