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25 January 2023
Biden's image takes a hit with a global economic crisis on the horizon
The discovery of further clutches of classified documents at President Joe Biden’s property presents not only a headache for the president, but also undermines his image as the more experienced leader compared to his predecessor.
Thus far, five tranches of classified documents have been found in the president's private residence and a think-tank, dating back to his time as vice president under Barack Obama and a Delaware senator before that.
The drip-feed nature of the scandal – with multiple incidents of documents being found over days and weeks – have even led Democrats to say it is a 'deeply embarrassing' episode for President Biden.
Those same Democrats will likely prefer highlighting the former administration’s foibles, including the recent revelation that classified documents were also found in the home of former Vice President Mike Pence.
Regardless of the actions of their predecessors, the scandal over President Biden’s mishandling of documents combined with a Republican-dominated Congress, and a looming economic dilemma as the United States hit its debt ceiling of US$31.4 trillion only add further challenges for the Biden administration.
President Biden – and the Democrats as a whole – will need to muster all the political capital at their disposal in the coming weeks to resolve the United States debt ceiling. If not dealt with promptly, it could be a far greater crisis than the discovery of misplaced classified documents.
NEWS WRAP
US debt ceiling default could be 'catastrophic', here's why
- Experts say US debt ceiling dilemma could create unprecedented crisis | Economists are warning that if the US takes the unprecedented step of defaulting in the wake of its inability to obtain a higher debt ceiling, then global financial markets could plummet. This is because the US dollar serves as a global reserve currency, and any
developments that weaken confidence in treasury bonds will impact major markets. READ MORE HERE
- US could send M1 Abrams tank to Ukraine | The New York Times reports the US plans to send its M1 Abrams main battle tank (MBT) to Ukraine. The tank is more powerful and capable than Soviet-era MBTs used by both Russia and Ukraine. READ MORE HERE
- Ron Klain to leave as Biden's chief of staff, replaced by Jeff Zients | A former corporate executive, Jeff Zients had no public health experience before being put in charge of the Biden administration's effort to combat the COVID pandemic. His performance in that role has now paved the way for him to become the president's new chief of staff. READ MORE HERE
- Roe v Wade turns 50 | The historic decision, which paved the way for abortion rights across the United States, turned 50 this week. Public rallies across the country marked the half-century. The original decision was overturned last year. READ MORE HERE
ANALYSIS
Shifting winds of change mean China no longer dares stage an assault across the Taiwan Strait
Stephen Loosley, Non-Resident Senior Fellow, United States Studies Centre
Any attack by China on its neighbour would prompt a strong response from an emboldened US-Japanese military alliance, and a Taiwan that has learned the lessons from Ukraine.
Western assumptions that China would eclipse the United States in economic power this decade appear open to serious challenge.
The Covid-19 pandemic has devastated China. Beijing’s “Zero Covid Policy” has proven dramatically unpopular and has failed utterly.
The country now faces serious health challenges, particularly for its senior citizens. Taken in totality, these newly emerging realities make any suggestion of an assault across the Taiwan Straits by China significantly less likely.
The winds in the Taiwan Strait, for now, are still.
This analysis was first published on Sky News Australia on 22 January 2023.
"I have no regrets."
President Joe Biden to the press, on the discovery of classified documents in his home | 12 January
BY THE NUMBERS
A ceiling that knows no limits?
Established in 1917 as part of legislation to allow the US Government to issue bonds to finance its participation in the First World War, the debt limit has been causing political headaches, particularly for US presidents, ever since.
According to analysis by the Peter G. Peterson Foundation, the ceiling has been raised 89 times since 1959. A process that became, particularly after the United States’ involvement in the Second World War, practically routine.
A separate deep dive into the debt ceiling by NPR notes that the debt limit neared a trillion dollars at the end of the 1970s with President Ronald Reagan raising the limit more than a dozen times to US$2.8 trillion by the end of his presidency.
The debt limit has been raised under successive US presidents ever since:
- Under President George H.W. Bush, the limit was set at around US$4 trillion.
- During the administration of President Bill Clinton, the limit went to about US$6 trillion.
- President George W. Bush raised the limit to US$11 trillion
- President Barack Obama oversaw the limit being raised to US$18 trillion
- The limit reached US$22 trillion under President Donald Trump.
- Government spending amid the COVID-19 pandemic saw the debt limit sharply raised to its current level of US$31.4 trillion under President Joe Biden.
Financial and economic experts say that if the existing debt ceiling is not raised again to meet US Government expenditure, the consequences could be global and catastrophic.
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United States Studies Centre
Institute Building H03
University of Sydney NSW 2006
