Hillary Clinton warns of global financial 'meltdown' if U.S. defaults on debt

 April 27, 2023

Former U.S. Secretary of State Hillary Clinton spoke out on the economy, warning against a debt default.

Clinton shared the concern in an op-ed published by the New York Times on Monday.

The warning

“The debt ceiling debate is not about authorizing new spending. It’s about Congress paying debts it has already incurred. Refusing to pay would be like skipping out on your mortgage, except with global consequences,” Clinton said.

"Because of the central role of the United States — and the dollar — in the international economy, defaulting on our debts could spark a worldwide financial meltdown," she added.

The situation

The strong words came as the White House has warned it will veto a GOP-led bill to raise the debt ceiling.

"The Congress has a solemn obligation to prevent default and ensure that the United States meets its obligations," the statement of administration policy said.

"The Administration strongly opposes the Limit, Save, Grow Act of 2023, which is a reckless attempt to extract extreme concessions as a condition for the United States simply paying the bills it has already incurred," it added.

"Today’s vote also sends a clear message to President Biden – continuing to ignore the problem is not an option," the House GOP leaders emphasized after the vote passed 217-215 on Wednesday.

"The President must come to the table to negotiate," they added.

The consequences could be dire as more countries being to work directly with China with the nation's own currency instead of using the U.S. dollar.

The Democrats have an opportunity to help improve the situation but appear more focused on saying no to anything the GOP approves instead of working toward bipartisan legislation to help the nation. The end result of the approach will likely lead to a weaker economy and the economic upheaval Clinton predicted, but due to problems from the Biden administration as the cause.

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