Exclusive Content:

Home Office Blunder: Thousands of Deportation-Intended Migrants Missing Before Rwanda Flights

A recent revelation has cast a glaring spotlight on...

Taxes: here is the (large) amount of the advance that the tax authorities will pay you on Monday January 15

The end-of-year holidays have just ended and it is...

Weather: what will the weather be like in February, March and April?

At the start of 2024, the temperatures on the...

Raising the debt ceiling | The US Congress rejects in extremis the threat of a default

spot_img

(Washington) After weeks of negotiations, America can breathe: by a vote of the American Congress, the United States suspended the ceiling of its debt on Thursday and dismissed, within a few days, the threat of a default .

“This is a great victory for the economy and for the American people,” President Joe Biden said.

According to the US Treasury, the world’s largest economy had only until Monday to avoid bankruptcy.

America, like almost all major economies, lives on credit. But unlike other developed countries, the United States regularly comes up against a legal constraint: the debt ceiling, its maximum amount of indebtedness, which must be formally raised or suspended by Congress.

From this routine legislative procedure, the Republicans, the majority in the House of Representatives, and their boss Kevin McCarthy, have made an instrument of political pressure against Democratic President Joe Biden.

A series of meetings at the White House, in small or large groups, endless negotiating sessions… the whole of Washington was suspended for weeks on the fate of the famous “debt ceiling”.

Although it is very common for last-minute agreements to be reached on this type of file, these endless negotiations have prompted the rating agency Fitch to place the United States’ AAA rating “under review” .

Saturday evening, in the middle of the long holiday weekend, the two parties finally snatched an agreement with forceps.

This text has avoided the worst: that the coffers of the country find themselves dry on June 5, risking pushing the United States into default.

Overnight, the country would have had the greatest difficulty in honoring its financial commitments, whether in terms of salaries, pensions or reimbursements to their creditors, and would have been forced to make drastic choices.

This unprecedented situation would have plunged into the unknown the American finance and economy, but also, by extension, international.

It is to avoid this scenario with potentially catastrophic repercussions that Democratic President Joe Biden and Republican House of Representatives boss Kevin McCarthy reached this compromise.

The agreement had already been approved Wednesday evening by a large majority of elected members of the House of Representatives.

It is now up to Joe Biden to enact it — a mere formality. The Democratic leader said he “can’t wait” to do so.

The president also said he would address the American people early Friday evening to detail the outlines of the text.

Concretely, the agreement makes it possible to suspend for two years, therefore until after the presidential and legislative elections of 2024, the maximum amount of indebtedness of the United States, currently at 31,400 billion dollars.

In exchange, Democrats agreed to limit some spending, but not as much as Republicans wanted.

That is why many of them opposed the measure, both in the House and in the Senate.

“Make no mistake, there is still a lot to be done” to clean up American finances, assured the Republican tenor in the Senate, Mitch McConnell.

A big point of contention for the left, the compromise includes modifications to the conditions imposed to benefit from certain social aid.

“I cannot, in my soul and conscience, vote for a bill that harms working people,” influential Senator Bernie Sanders said.

Latest articles

Anne Hathaway Captivates in The Idea of You: A Deep Dive Film Analysis

Anne Hathaway's Compelling Performance: Delving into the Heart of "The Idea of You" Anne Hathaway's...

Nvidia and AMD Stocks React as Semiconductor Sector Faces Turbulence

The semiconductor market experienced significant fluctuations as Nvidia and AMD stocks reacted to industry...

Adrian Newey Announces Departure: Red Bull Racing Faces Transition in F1 Design Leadership

End of an Era: Adrian Newey Announces Departure from Red Bull Racing In a significant...

Home Office Blunder: Thousands of Deportation-Intended Migrants Missing Before Rwanda Flights

A recent revelation has cast a glaring spotlight on the Home Office, as it...

More like this

Home Office Blunder: Thousands of Deportation-Intended Migrants Missing Before Rwanda Flights

A recent revelation has cast a glaring spotlight on the Home Office, as it...

Taxes: here is the (large) amount of the advance that the tax authorities will pay you on Monday January 15

The end-of-year holidays have just ended and it is nice to benefit from an...

Weather: what will the weather be like in February, March and April?

At the start of 2024, the temperatures on the thermometer are enough to make...