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3 May 2023

Looming US debt default spurs talks

US Treasury Secretary Janet Yellen warned on Monday that the United States could default on its debts as early as 1 June if the debt ceiling is not raised. President Joe Biden has now reached out to congressional leaders, including Republican Speaker of the House Kevin McCarthy, to resolve the looming crisis.

Negotiations over the debt ceiling remain deadlocked over deep spending cuts proposed by congressional Republicans as a precondition for raising the debt ceiling, which were passed by the Republican-controlled House of Representatives last week. Even if it were to clear the Democrat-controlled Senate, the White House says it would veto the bill.

In the absence of further progress in talks, the nation edges further towards what would be an economically catastrophic default. As United States Studies Centre Director of Research Jared Mondschein writes, President Biden is confident of re-election but an economic shock between now and election day risks derailing his nascent campaign. 

 

NEWS WRAP

US commitment to Philippines is 'ironclad'

  • Joe meets Junior | President Joe Biden met with Philippines President Ferdinand Marcos Jr at the White House and affirmed an 'ironclad' commitment to the defence of the Philippines. The annual joint Balikatan exercises held last week between the US and the Philippines were the largest in decades. READ MORE HERE
     
  • Another bank collapse | JPMorgan took over the First Republic bank in a US$10.6bn deal following the second-largest collapse in US banking history. The collapse is the third in the United States this year and sparked renewed concerns over the US banking system. READ MORE HERE
     
  • McCarthy in Israel | Republican House Speaker Kevin McCarthy met with Israeli Prime Minister Benjamin Netanyahu this week as part of a bipartisan Congressional delegation to Israel. McCarthy also addressed the Knesset, becoming only the second House speaker to address the Israeli parliament. READ MORE HERE
     
  • Hollywood on strike | Thousands of US film and television writers are on strike over a pay dispute with production studios. The last Writers Guild of America strike 15 years ago shut down productions and is estimated to have cost the Californian economy US$2.1 billion. READ MORE HERE
 

EVENT

How to stop a Cold War from becoming hot: Lessons from Ronald Reagan

In the era of strategic competition, debate about how to preserve the international rules-based order without provoking a catastrophic conflict continues unabated. Following the invasion of Ukraine, concerns around Taiwan have made the stakes in these debates only more tangible. To answer the critical question about how to avoid great power conflict, former White House staffer Dr William Inboden argues we should look to the past and, specifically, US President Ronald Reagan’s role in the waning days of the Cold War. What lessons from President Reagan’s foreign policy apply to current tensions in the Indo-Pacific? How should the United States work with allies and approach economic realities in the Indo-Pacific? What would Reagan do about Xi Jinping?

To discuss these questions, please join the United States Studies Centre (USSC) for an in-person event featuring USSC Visiting Fellow Dr William Inboden, Executive Director and William Powers, Jr. Chair at the Clements Center for National Security at the University of Texas-Austin, and author of The Peacemaker: Ronald Reagan, The Cold War, and the World on the Brink, in conversation with USSC CEO Dr Michael Green.

Dr William Inboden joined the University of Texas-Austin faculty after many years of service as a policymaker in Washington DC, including as senior director for strategic planning on the National Security Council, on the State Department's Policy Planning Staff and as a congressional staff member. He is also a distinguished scholar at the Strauss Center for International Security and Law, a National Intelligence Council associate and serves on the CIA's Historical Advisory Panel and the State Department's Historical Advisory Committee. 

WHEN
Thursday, 25 May
6.00–7.30pm

WHERE
Level 5 Meeting Room, The Michael Spence Building (F23), Corner of Eastern Avenue and City Road, The University of Sydney, Camperdown NSW

COST
Free, but registration required.

REGISTER HERE
 

REPORT

Defence industry roundtable series | Report on Series 1: Export controls

Tom Corben, Research Fellow; Sophie Mayo, Research Associate

The advent of AUKUS has invigorated longstanding discussions within the Australia-US Alliance about established patterns of cooperation within the bilateral defence industry and technology relationship. Indeed, the success of AUKUS Pillars I and II, as well as that of adjacent initiatives like the Guided Weapons and Explosive Ordinance Enterprise (GWEO), will hinge on the ability of both countries to integrate their defence industrial bases more seamlessly, to share existing technology more readily, and to develop the legal and regulatory frameworks and protections required to innovate together on the next generation of advanced defence capabilities.

To date, these discussions have been confined largely to government-to-government talks, yet the whole-of-nation requirements of AUKUS necessitate other important voices enter the debate. While the role of the private sector in facilitating alliance integration within these vectors is frequently spotlighted, their perspectives across broad-spectrum integration challenges have yet to feature in the public discussion in a way that engenders reciprocal dialogue. Soliciting and considering the views of those who will be tasked with developing and delivering the next generation of advanced defence capabilities through AUKUS and other means has rarely been more important.

This report spotlights points of consensus and divergence within the Australian defence industry community and between Australia and the United States, respectively, on issues central to the realisation of AUKUS.

 

This is an excerpt from a recent report on the USSC website.

READ MORE HERE
 

"We will be unable to continue to satisfy all of the government's obligations by early June."

Treasury Secretary Janet Yellen warns the debt ceiling must be raised | 1 May 2023

 

VIDEO

A conversation with Walter Russell Mead

On 14 February, USSC hosted foreign policy expert and esteemed academic, Walter Russell Mead in conversation with USSC Professor of US Politics and US Foreign Relations, Brendon O’Connor.

Catch this and other recent events on the USSC YouTube channel!

 

BY THE NUMBERS

Biden holds fewer interviews than predecessors

In his first two years in office through to December 2022, President Biden granted fewer interviews than his predecessors dating back to at least President Ronald Reagan. Biden has also held fewer news conferences than his recent predecessors at this point in his presidency.

As USSC Director of Research Jared Mondschein writes, Biden is confident in his chances of re-election, but concerns over his age and accessibility to the public have only grown as the administration of the oldest ever US president has minimised his time answering questions from reporters.

READ MORE HERE
 

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University of Sydney NSW 2006

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The United States Studies Centre at the University of Sydney is a university-based research centre, dedicated to the rigorous analysis of American foreign policy, economics, politics and culture. The Centre is a national resource, that builds Australia’s awareness of the dynamics shaping America — and critically — their implications for Australia.

CRICOS Number: 00026A

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