DodoFinance Breaking News Made For You!
US public debt has grown so much that without emergency measures, the country will soon run into payment problems. The United States is not allowed to have more than $31.4 trillion (nearly 29 trillion euros) in national debt under its own laws, but the country will reach that ceiling one of these days or the may already have reached.
Without emergency measures, the US government would have to cut spending. In the past, this has led to temporary cuts in payments to officials, for example by closing nature parks and reducing the number of coastguards. In such a situation, there is a stoppage.
It’s not that far yet, but the government has already taken action, giving him a few months of respite. For example, payments to pension funds have been postponed and benefits may be reduced in order to repay loans instead.
Instead, the government would see the debt ceiling raised by the Senate and the House of Representatives (a sort of Senate and House of Representatives). But it doesn’t go without a hit or a smack. Republicans, playing an opposition role, are likely not content to agree and have a majority in the House.
It is expected that it could take months before a deal is reached. The administration led by Democratic President Joe Biden may have to make concessions to Republicans. Although a higher debt ceiling often leads to problems, American politics has always managed to get away with it.
If the ceiling is not raised, it means that the US government will not be able to repay part of its debt. It is so bad for the solvency and the status of the country that the parties have always reached an agreement.
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