US President Joe Biden has said he is considering using the 14th Amendment to the US Constitution to bypass the US national debt ceiling, which currently stands at $31.4 trillion.
In order to avoid a default on it, the ceiling must either be raised or canceled, but this requires the consent of Congress, which has not yet been achieved. The Republican majority opposes such moves, and the amount of public debt is limited by law.
Now the US Treasury makes budget payments from tax revenues and accumulated money. However, by June they will end, and then the state, if it does not have the opportunity to continue to borrow funds, will be forced to default on all payments, since the US Treasury is not authorized to make them selectively. These include public debt obligations.
The United States has never defaulted on a public debt in its history. Since 60% of the world's savings are held in dollars, this event, as Treasury Secretary Janet Yellen said , will lead to "economic and financial disaster." At the same time, Joe Biden said that he was not going to sequester the budget to please the Republicans.
Section 4 of the 14th Amendment to the US Constitution says that "the legitimacy of the public debt of the United States, sanctioned by law, <…> is not called into question," thus prohibiting non-payment of debts. Referring to it, the Ministry of Finance can continue to borrow funds, but such a step will lead to lengthy litigation against him.
Joe Biden promised to "take a good look" at the 14th Amendment, but said that in the short term he would not be able to use it for legal reasons.