The US avoids the default default, but it will come back to the abyss in December

With the final approval of an initiative in Congress, the United States prevented this Tuesday to incur an unpaid of the national debt from October 18, when it

The US avoids the default default, but it will come back to the abyss in December

With the final approval of an initiative in Congress, the United States prevented this Tuesday to incur an unpaid of the national debt from October 18, when it was going to run out of funds, but it will have to be discussed again about this problem before December .

The issue of indebtedness had become the last weeks in a novel by suspense in Washington, where disagreements between Democrats and Republicans had placed the country on the verge of the precipice of the suspension of payments for the first time in its history.

This Tuesday, however, the House of Representatives, of the Democratic majority, managed to approve a bill that raises the debt roof worth 480,000 million dollars, an amount that will allow the country to pay until December 3 debts that It has earrings.

The initiative was approved with 219 votes in favor and 206 against, and now it will be sent to the White House so that US President Joe Biden, the firm and becomes law.

Before the proposal received green light, the president of the House of Representatives, the Democrat Nancy Pelosi, had accused the leader of the Republicans in the Senate, Mitch McConnell, of having been playing for weeks "Russian Roulette" with the US economy.

"What do you have against our own economy?" He reproached Pelosi to the Republicans.

"This catastrophe against our workers could have an impact of more than a hundred years old, is that not care? And the world economy," he added. The frozen credit markets, the stock markets in fall and companies throughout The world dismissing your employees. "

Pelosi painted a lugubrious image on what could have happened if Congress had not acted.

The United States has never had to declare the suspension of payments of its national debt, but it was very close in 2011, when the mere possibility that this happened unleashed chaos in financial markets and made the risk rating agency Standard & Poor's Rowing the country's solvency note.

The possibility that the USA was immersed in a recession ended up making a dent in McConnell, who last week gave his arm to twist.

Specifically, McConnell decided to renounce a parliamentary mechanism that requires a supermatory to approve law, which allowed the Democrats to approve the measure in the Senate alone.

It is, in any case, of a patch that does not fully satisfy the requests of the Democrats and the Biden itself, which wanted a long-term solution.

In fact, progressives had proposed to suspend the indebted roof until December 2022 so as not to have to talk about this topic during the November Legislative Elections next year, in which the party fears losing the close majority it has in The two cameras of the congress.

The Republicans, on the other hand, have already warned that they will not support a suspension of the debt ceiling.

Therefore, the question is now seeing what the Democrats will do to avoid the default default as of December 3, when the US it would be left without money to pay for their invoices.

On December 3, in addition, the funds approved by Congress will be completed in September to avoid a closing of government.

Therefore, the end of the year could be especially agitated in Congress, where Democrats are also trying to approve two key measures for the Biden Agenda: an infrastructure plan rated at 1.2 trillion dollars and a social spending package of 3.5 trillion dollars, although probably that amount ends up reducing.

With the view on December, the Republicans want to link the increased roof increase with the Biden Social Expenditure Plan and have asked the Democrats to approve those two solo measures using a legislative mechanism called "reconciliation".

The Democrats have already expressed their rejection of that idea because they do not want to give the conservatives more ammunition to portray them as the match that increases US debt, an idea that conservatives have repeated in multiple electoral campaigns.

Each time, the United States pertains to the default of national debt because, unlike other countries, the US government can only issue debt to the limit established by Congress, which has the power to raise that roof as convenient.

Updated Date: 15 October 2021, 07:49

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