Washington – Congressmen will return to Washington on Tuesday to approve a short-term increase in the country’s debt limit, allowing the federal government to pay the bill in full by December.
The $480 billion increase in the country’s borrowing limit was approved by the Senate in a party vote last week. The House of Representatives is expected to approve it quickly, so President Joe Biden can sign it into law this week. Treasury Secretary Janet Yellen warned that measures to prevent the country’s default would be exhausted by Monday, with the ministry soon unable to fully meet its government’s financial obligations.
The impact of the default on global financial markets built on the debt base of the US government would be immeasurable. Regular government payments to Social Security beneficiaries, disabled veterans and active duty personnel will also be an issue.
“It is terrible that our country is placed in this place, but we must take immediate action to remove debt sanctions and ensure that the full trust and credibility of the United States is not compromised.” Steny Heuer , Maryland House Majority Leader, said. ..
However, the relief given by the passage of the bill is temporary and will force Congress to reconsider the issue in December. The year-end backlog poses risks for both sides and turmoil nears Biden’s first year in office.
Senate Republican Leader Mitch McConnell, R-Ky. The current controversy over the debt cap subsided when they agreed to help pass short-term growth. But he insists that he will never do this again.
In a letter sent to Biden on Friday, McConnell used the same process Democrats used to pass Biden’s massive social spending and environmental plans: He said he had to handle the evacuation himself. The agreement allows the law to pass the Senate with 51 votes, instead of the 60 votes normally required. In a 50-50 split Senate, Vice President Kamala Harris would give the Democratic majority a tiebreaker vote.
McConnell focuses on debt limits and Biden’s $3.5 trillion plan puts it into law.
“It is time for your assistant at Capital Hill to argue that he is lacking in addressing the debt cap through an independent settlement and all means necessary to do so,” McConnell said in a letter. Rice field. “”
McConnell was one of 11 Republicans on the Democratic Party’s side to advance the loan cap grace to the final vote. McConnell and his Republican allies then voted against the final pass.
Suddenly an agreement was reached for a short-term amendment. Some Republican senators said the Democratic threat of lifting the 60-vote limit for the debt cap (Biden called it “real potential”) influenced McConnell’s decision. where did it go.
“I understand why Republican leaders blink, but I wish they didn’t,” said R-Texas Senator Ted Cruz.
The current debt cap is $28.4 trillion. Both sides contributed to the burden of decisions that left the government rarely acting in the black.
The disastrous consequences of the defaults are that lawmakers have been able to reach an agreement to lift or suspend the loan cap, after repeated periods of crisis since 2002.
A recent report by Moody’s Analytics warned that “even if global financial markets and economies are disrupted and resolved quickly, Americans will have to pay for this default for generations.”
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