Economy teetering on the verge as debt discussions reach a stalemate.

Members and supporters of the Writers Guild of America formed a picket line in New York on Tuesday, demanding increased pay for their work. Meanwhile, Democrats and Republicans in the United States are at odds over the debt ceiling as critical deadlines loom. With time running out to avoid a potentially catastrophic U.S. debt default, the two major political parties are exchanging accusations and fueling fears about the global economy.

On Sunday, President Biden stated that Republican demands to resolve the government’s debt ceiling tensions were “unacceptable.” Republicans, on the other hand, accused Democrats of taking too far to the left. Despite talks falling apart, Biden believes a default can be avoided, and a deal will have to be reached this weekend to pass the bill by June 1.

The debt ceiling is the legal limit on government borrowing, currently set at $31.4 trillion, which was reached in January. Without a deal, failure to raise the debt ceiling could trigger the first payment default in U.S. history, leading to unprecedented defaults by nations, affecting the global economy.

The Washington Post reported on Saturday that Republican negotiators rejected the White House proposal and are calling for an increase in defense spending and a drastic cut in domestic spending. Meanwhile, Democrats want spending cuts to last for about two years, after which it will be easier for embezzlers to increase the budget.

“This will always be an issue,” said G. William Hoaglund, senior vice president of the Center for Bipartisan Policy, a Washington think tank. “Republicans are looking for significant savings over the next decade, but the administration clearly doesn’t want to lock in a 10-year number and is looking at a shorter period.”

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