December 5, 2022

Raven Tribune

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U.S. Congress reaches agreement on debt dispute – by December

Hours of negotiations are behind those involved: there was an agreement on a debt dispute in the United States. Democrats agreed to an interim solution. However, this does not prevent the problem.

After several days of struggle, he is there US-Congress Temporarily averted the bankruptcy of the world’s largest economy. The U.S. Senate on Thursday evening (local time) agreed to raise the debt ceiling to $ 480 billion by December. The vote on the deal was narrow with 50 to 48 votes – none of the Republicans joined the Democrats. However, the increase could be voted on with the help of Republicans. The House of Representatives must also agree.

The plan was introduced by Mitch McConnell, the Conservative Senate Minority Leader. “I have good news: we have reached an agreement on extending the debt ceiling until December,” Zoomer said before the Senate vote.

Avoid recession

It was preceded by violent arguments between Democrats and Republicans – who blame each other for the most dangerous conflict. Minister of Finance Janet Yellen The U.S. government had warned of a possible financial crisis and a possible recession if it failed to repay its debts for the first time.

According to your ministry, on October 18, the United States ran out of money within two weeks. If the United States fails, the recession is “possible,” Yellen said. Due to the pioneering role of the United States, there was also the threat of global economic turmoil.

In fact, the agreement reached on Thursday now adjourns the parliamentary debate to the end of November. In addition to the debt ceiling, Congress will have to adopt a new budget in early December if it wants to avoid a freeze on so-called “federal” institutions.

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Republicans are demanding a separate path

Although the debt ceiling has been suspended or raised dozens of times under the leadership of both parties over the past few decades, Republicans now stand in opposition. By blocking minorities in the Senate, the party is preventing the debt ceiling from being lifted through ordinary legal means.

Through the interim solution, McConnell is urging Democrats to follow a special path called “reconciliation” for a permanent solution. Democrats wanted to avoid this; They say this process is time consuming and risky. In addition, they do not want Republicans to be relieved of the responsibility of jointly handling the country’s debt burden, especially since the debts go back to the Trump administration.

The Democrats Republicans have accused Biden of obstructing his political agenda and seeking to wreak havoc ahead of next year’s congressional election. Biden accused Republicans of “playing Russian roulette with the US economy.” Since Barack Obama’s presidency of the Democrats, Republicans have been using the debt ceiling as a means of political pressure.