2023-05-30 14:01:22
The compromise authorizes above all the increase in the stock of public debt beyond 31.400 billion dollars. SAMUEL HEART
The agreement reached this weekend between the White House and the leaders of Congress raises for two years the public debt ceiling of the United States. But the votes by the House of Representatives, then by the Senate, are not formalities.
The deal reached behind closed doors last weekend between the White House and congressional leaders must be passed by both chambers by June 5. This is the day the US Treasury estimates it will run out of cash and be unable to pay all of its bills. It is therefore imperative that it be able to issue bonds again at the risk of causing the United States to fall into technical default of payment. Paradoxically, the suspense that captivates Washington and Wall Street relates to a legislative package of spending freezes that will only have a marginal influence on the American economy and on the trajectory of public debt.
The compromise authorizes above all the increase in the stock of public debt beyond 31.400 billion dollars. If it were not passed by Congress, a financial disaster with global repercussions is likely. But the debt ceiling is only eliminated for two years. And by then the uncle’s debt…
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