Thursday, September 28, 2023

Key to a possible agreement to raise the debt limit

Republican and Democratic leaders are desperately seeking support so that the bill, which seeks to avoid a catastrophic default of the United States, has enough support in Congress.

(See: Agreement on debt ceiling raising principle in the United States).

On June 5, a week after the date when the United States would begin to run out of funds according to the Treasury Department, the project originated in a bipartisan agreement led by President Joe Biden and Republican leader. In the House of Representatives, Kevin McCarthy faces disapproval from progressive Democrats and the opposition right.

Ultra-conservative Republicans believe that McCarthy should have ensured even greater cuts in public spending in exchange for raising the United States’ debt ceiling, which would avoid a moratorium on the payment of obligations and ensure the functioning of the federal state. was necessary for

(See: What comes after the Agreement on the Debt Ceiling in the US).

Meanwhile, the left wing of the ruling Democratic Party is also unhappy with the president’s decision to accept the spending cuts.
Biden and McCarthy are confident the bill will pass the Republican-dominated House on Wednesday before going to the Democratic-controlled Senate. But dissatisfied can delay the process.

The two leaders have held talks for weeks and what is at stake is the possibility of an unprecedented default on US debt, considered the safest in the world, a scenario that could shake world finance.

(See: Key Points of Agreement to Raise US Debt Limit.)

The bipartisan deal suspends the so-called $31.4 trillion federal debt limit for two years, enough to get through the 2024 presidential election and allow the government to borrow money and remain solvent.

Biden gets peace of mind that he will not experience another such crisis in his re-election campaign, and Republicans make sure to impose some limits on public spending.

(See: US debt ceiling talks enter final stage).


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Nation World News Desk
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