&copy Bloomberg. WASHINGTON, DC – MARCH 10: Director of National Intelligence (DNI) Avril Haines testifies before the Senate Intelligence Committee on March 10, 2022 in Washington, DC. The committee held a hearing on worldwide threats. (Photo by Kevin Dietsch/Getty Images)

(Bloomberg) — Director of National Intelligence Avril Haines warned that China and Russia would probably seek to exploit a US government default on its debt. 

It is “almost a certainty” that both countries would use such an event for propaganda purposes through “information operations,” using it as evidence that the US political system is dysfunctional, Haines told the Senate Armed Services Committee on Thursday. 

Haines said the intelligence community didn’t have information to provide an independent assessment, but she said that a default would created “global uncertainty” about the value of the dollar, US leadership and American institutions. 

Haines’s comments come as President Joe Biden’s administration faces an acrimonious political battle over increasing the US debt limit. The administration has insisted that there will be no debt-limit negotiations with House Speaker Kevin McCarthy and fellow Republicans who are demanding that an increase in the borrowing ceiling be tied to cuts in spending. 

Haines also testified that the continuing war in Ukraine has increased Chinese President Xi Jinping’s leverage over Russian President Vladimir Putin. She said that Putin has likely scaled back his immediate ambitions in Ukraine as Russia’s efforts to make territorial gains have stalled. 



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