2023-05-28 09:06:14
After weeks of negotiations, the united states they will be saved from a “catastrophic failure» that could have led the country to a «economic recession», in the words of the president Joe Biden. The president arrived on Saturday at one principle of agreement with the president of the House of Representatives, the republican Kevin McCarthyto raise the debt ceiling current of $31.4 trillion for a period of two years, the remainder of the mandate, to be able to pay all debts.
McCarthy announced the pact on Twitter and later in an appearance on Capitol Hill. “After that [Biden] wasted time and refused to negotiate for months, we have reached an agreement in principle. We still have a lot of work to do. But I think it is one pact worthy of the American people», he affirmed.
For his part, the president ratified that the draft bill to raise the debt limitreferred to as “budget agreement“, is “a commitment”. Now, the pact it will have to be voted on in the House of Representatives and the Senate next week with urgent nature to avoid default of the Government’s obligations.
“Not everyone gets what they want”
everyone gets what they want”Details of the deal have not yet been disclosed, but it involves spending limits for two years. “It contains historic reductions in spending, reforms consequences that will lift people out of poverty and incorporate them into the labor market. It corrects the excesses of the Government. There are no new taxes or new government programs,” he said McCarthy.
Republicans are poised to deliver big, consequential change in Washington. Soon, we will vote for a responsible debt limit agreement that stops Democrats’ reckless spending, claws back unspent COVID funds, blocks Biden’s new tax schemes, & much, much more https://t.co/TQ7CblFsaM
— Kevin McCarthy (@SpeakerMcCarthy) May 28, 2023
“Reduce spending while protects critical programs for workers and grows the economy for everyone. In addition, the deal protects my top legislative priorities and accomplishments and those of Democrats in Congress. The agreement represents a commitment, and that means that not everyone gets what they want. This is the responsibility of governing”, said Biden in his statement, while urging Congress to approve the new law.
Bankruptcy from June 5
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every so often, the United States is nearing national debt default because, unlike other countries, the Government can only issue debt up to the limit established by Congress. The country reached its legal debt limit of $31.4 trillion on January 19. equivalent to 29 billion euros, so the Treasury Department had to resort to extraordinary measures to pay the bills suspending some payments to retirement funds of federal employees and the social insurance of postal employees, among others.
The Republican leader reported that he will speak with Biden today and that he will oversee the final drafting of the bill. If the agreement is not approved, the United States could incur a ‘default’, since the US Treasury would stop fulfilling its financial commitments on June 5.
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