Joe Biden: Joe Biden’s trip to Australia canceled amid debt crisis, will attend only G7 conference

The White House has issued a statement saying that President Biden has spoken to Australian PM Albanese and informed him that he is postponing his visit to Australia.

US President Joe Biden has canceled his proposed trip to Australia and Papua New Guinea. Although Biden will attend the G7 summit in Hiroshima, Japan this week. Earlier there was news that America could very soon be declared a defaulter in terms of debt repayment.

US Treasury Secretary Janet Yellen confirmed on Monday (local time) that the US could default on its obligations as early as June if Congress does not act. Let us inform that three major bank defaults have been declared in America.

Biden spoke to Australian PM Albanese
The White House has issued a statement saying that President Biden has spoken to Australian PM Albanese and informed him that he will postpone his visit to Australia. He invited PM Albanese for an official state visit. Along with this, the President’s team held talks with the PM of Papua New Guinea’s team and also informed them that Biden is postponing his visit.

White House spokeswoman Karine Jean-Pierre said in the statement that President Biden will return to the United States on Sunday following the completion of the G7 summit for meetings with Congressional leaders to ensure that Congress Take action within the time limit to avoid default.

There could be a cash crunch in the US
Yellen had earlier forecast a US cash crunch by early June based on April tax receipts and current spending levels. Significantly, the collapse of some regional banks in the US sent shockwaves through the global banking sector and raised fears of a contagion effect across economies. The decline of regional banks began with Silicon Valley Bank. Low interest rates also reduced banks’ net interest profit, forcing them to cut operating costs from elsewhere.