0
0
Defense Secretary Lloyd Austin and Joint Chiefs of Staff Chair Gen. Mark Milley issued a warning to lawmakers, emphasizing the severe consequences of a default on the nation’s debt. They highlighted the peril to troops’ pay and the advantage it would grant to China. The statements were made during a hearing held by the Senate Appropriations defense subcommittee.
According to Secretary Austin, breaching the debt ceiling would place the United States’ reputation at “significant risk” globally. He expressed concerns regarding the potential disruptions in allied programs, questioning the nation’s ability to fulfill commitments. The most crucial aspect, he emphasized, was the well-being of military personnel and civilians. Failure to pay them adequately would leave them vulnerable, and he noted that China and other adversaries could exploit this situation to their advantage.
“There’s just a number of things that we’re working with allies and partners on that would come into question as to whether or not we’ll be able to execute programs, but most important, this will affect the livelihood of our of our troops and our civilians,” Austin told lawmakers. “We won’t be able to pay people like we should, and I think that’s something that China and everybody else can exploit.”
General Milley, echoing Austin’s sentiments, observed that China had already publicly characterized the United States as a declining power. A default on the nation’s debt would further reinforce this perception, emboldening China and increasing risks for the United States. These remarks align with Director of National Intelligence Avril Haines’ previous warning that China and Russia could exploit a U.S. government debt default. Haines suggested that such an event would provide evidence of a chaotic political system, undermining the perception of the United States as a functioning democracy.
Presently, the Biden administration finds itself entangled in a political standoff over raising the U.S. debt limit. Speaker Kevin McCarthy and his Republican colleagues argue that any increase in the debt ceiling must be accompanied by spending cuts. President Biden and congressional leaders held meetings this week, with further negotiations scheduled for Friday. However, a solution remains elusive, and Treasury Secretary Janet Yellen has cautioned that Washington may default on its obligations as early as June 1.
Experts have warned that a default would have catastrophic implications for global financial markets. It could lead to delayed Social Security payments and disrupt the timely disbursement of paychecks for veterans and federal employees, including service members. Secretary Austin stressed that troops’ pay would be significantly affected, with the Pentagon unable to ensure timely payments in the event of a default. This lack of predictability would directly impact the livelihoods of military personnel and civilians.
During the hearing, Senator Jack Reed raised concerns about the potential effects of a debt default. He cautioned that China could exploit the situation to disseminate disinformation and create confusion among American citizens. Additionally, he highlighted the risk of the United States appearing unstable on the global stage. Senator Reed’s query prompted Secretary Austin to concur, affirming that a default would indeed be a grave strategic error, especially in relation to China.
In summary, the Pentagon’s top officials have alerted lawmakers to the imminent dangers associated with a default on the nation’s debt. The potential repercussions range from endangering troops’ salaries and undermining US reputation to providing China with an opportunity to strengthen its position. The ongoing political standoff over the debt limit raises concerns about the nation’s financial stability and the ability to meet its obligations, posing significant risks to national security and global markets.
Source: Yahoo! News
