Hillary Clinton Says Republicans Are ‘Playing Into the Hands’ of Russia, China

Hillary Clinton, former Secretary of State and 2016 Democratic presidential nominee, has written an opinion piece for The New York Times, criticizing House Republicans for using the debt ceiling as a political weapon and undermining the U.S.’s global credibility, therefore playing into the hands of adversaries like Russia’s Vladimir Putin and China’s Xi Jinping.

In her piece, Clinton recalled her experience during the 2011 debt ceiling crisis and how it damaged the U.S.’s credibility abroad.

The former secretary of state emphasized that the current political brinkmanship over the debt ceiling not only risks a global financial crisis but also undermines the country’s ability to project strong, steady leadership in the face of international challenges.

Clinton writes, “Today the competition between democracies and autocracies has grown more intense. And by undermining America’s credibility and the pre-eminence of the dollar, the fight over the debt ceiling plays right into the hands of Xi Jinping of China and Vladimir Putin of Russia.”

During the 2016 United States presidential election, Clinton accused the Russian government of interfering in the election to help Donald Trump win and suggested that the Trump campaign colluded with Russia.

She argues in her new piece, published on Monday, that defaulting on U.S. debts could severely weaken the nation’s economy, with potential repercussions such as the loss of seven million jobs and a deep recession.

This, she states, would embolden America’s adversaries and provide ammunition for their narrative that American democracy is in decline and untrustworthy.

“Trust matters in international affairs,” Clinton writes. “Threatening to break America’s promise to pay our debts calls all that into question.”

She also highlights the potential danger of playing games with the debt ceiling to the U.S. dollar’s pre-eminent position in the global economy, explaining that the dollar’s central role grants the U.S. significant influence, allowing it to impose crippling sanctions, such as those against Iran and Russia.

However, Clinton contends that if Congress continues to flirt with default, calls to replace the dollar as the world’s reserve currency could grow louder, with countries around the world starting to hedge their bets.

Clinton concludes her opinion piece by urging Republicans to stop holding America’s credit “hostage,” shoulder their responsibilities as leaders, and raise the debt ceiling, stating, “They talk a good game about standing up to Beijing, yet they are handing a major win to the Chinese Communist Party.”

The U.S. government’s $31.4 trillion debt ceiling deadline is approaching, increasing the risk of a debt default that could have wide repercussions across global financial markets, a Reuters report explains.

The debt ceiling is the maximum amount the U.S. government can borrow to meet its financial obligations, and the Treasury Secretary has said that the government could pay its bills only through early June without increasing the limit.

The deadline for filing taxes could be moved forward due to tax receipts for the April filing season coming in weaker than expected.

In the event of a U.S. default, some investors may move money into international equities and foreign governments’ bonds, while others may flee to quality, pushing Treasury yields lower, the report adds.

Republican House Majority Leader Kevin McCarthy (CA) has released a 320-page Republican bill that would lift the debt ceiling by $1.5 trillion or extend it through March 31, 2024, although President Joe Biden and the Democratic-controlled Senate are likely to reject it.

LATEST VIDEO