United States: debt ceiling raised, no default

Pixabay No payment default for the world’s leading economic power. The US Senate approved on Tuesday 12 December a bill to raise the debt ceiling of the United States. With their only votes, the Democratic senators approved this project which would allow the United States to honor its payments until the beginning 2021. The Democratic-majority House of Representatives must now give the green light to this measure, before Joe Biden promulgates it. It is urgent: the debt ceiling, the maximum amount of debt of the United States, must be raised at all costs by Wednesday, otherwise America would no longer be able to honor its payments to its creditors and would have to cut spending. This unprecedented situation would plunge American finance and economy into the unknown, but also, by extension, international ones, and could cause a recession. But it seems less and less likely. “The American people can breathe: there will be no default,” said Senate Majority Leader Chuck Schumer. >> To read also – United States: Congress raises the debt ceiling until the end of the year

Long negotiations The text voted on Tuesday in the Senate, the result of several days of negotiations, was unveiled a few hours earlier by the elected Democrats. It would raise the country’s debt limit by 2. 480 billions of dollars. The White House said “strongly support” this initiative thanks to which the US Treasury will be able to “keep its commitments without causing disruption or damage to our economy and American families.” She urged Congress to pass it without delay. Raising the debt capacity of the United States is usually a formality, but this procedure has been the subject of very tough negotiations in Congress in recent months, with Republicans deeming it to be like giving the President a blank check. , at the very moment when they accuse it of contributing to galloping inflation. And the Democrats to retort that raising the debt limit is used to repay sums already borrowed, including trillions of dollars spent under the Trump presidency. The Republican opposition finally allowed them to employ a complex parliamentary procedure, thanks to which the Democrats only need their votes to raise this famous “ceiling”. The adoption of this new “ceiling” would be a relief for Joe Biden, who faces other dangers on Capitol Hill: its gigantic social and ecological component of 1. 750 billions of dollars, on which he is betting to “rebuild America better” and save his popularity rating which plummets, remains for months in parliamentary limbo. Receive our latest news Everyday , the selection of main information of the day.