The Senate approves suspending the debt ceiling until December and avoids the 'Default'

The United States Senate approved this Thursday to suspend the indebted roof until December to avoid incuring a suspension of payments from its national debt as

The Senate approves suspending the debt ceiling until December and avoids the 'Default'

The United States Senate approved this Thursday to suspend the indebted roof until December to avoid incuring a suspension of payments from its national debt as of October 18.

The Democrats approved only with their votes the suspension of the debt ceiling after the Republican opposition refused to collaborate with the executive of Joe Biden, thus putting the US solvency and the stability of financial markets at risk.

The project now goes on to the lower house, whose democratic majority should approve before the next week.

The vote of this Thursday in the Senate occurred after the Republican leader in the Senate, Mitch McConnell, accessed hours before renouncing the parliamentary mechanism required by a supermayority, thus allowing the Democrats to approve the measure.

McConnell's decision enraged a large part of the Republicans, who had been tencing the rope with the American economy on the edge of the precipice.

The pact to which McConnell accessed only allows the debt ceiling to be suspended until December 3, so the United States can be found in the same situation here two months.

The agreement aroused a warm response in the White House, which had been insisting that it was necessary to suspend the roof of debt more in the long term and will now have to settle for a temporary solution.

The Secretary of the Treasury of the United States, Janet Yellen, had alerted on several occasions that the date of October 18 could be the one that the United States will incur a suspension of national debt payments for the first time in its history.

That feared suspension of payments could have unleashed chaos in financial markets and reduced the United States Solvency Note.

This situation on the debt roof occurs because, unlike other countries, in the United States the government can only issue debt to the limit established by Congress, which has the power to raise that roof as convenient.

Updated Date: 08 October 2021, 16:17

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