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Congress Avoids Danger Of US Default

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(Washington) America “can breathe”: elected officials of Congress agreed on Wednesday shortly after midnight to raise the debt ceiling of the United States and thus avert the catastrophic threat of a default by the world’s leading economic power .

With only one Republican backing, elected Democrats in the Senate and then in the House approved a bill that will allow the United States to honor its payments until the beginning of 2023.

“No default of payment”

It was urgent: the maximum amount of debt of the United States, the famous “ceiling”, had to be raised at all costs by December 15 at the latest, otherwise America was no longer in a position to honor its obligations. payments to his creditors and had to start slashing his spending.

This unprecedented situation would have plunged American finance and economy into the unknown, but also, by extension, international ones. At the risk of causing a recession.

“The American people can breathe: there will be no default,” said Senate Majority Leader Chuck Schumer.

The text approved Tuesday in both chambers of Congress, the result of several days of negotiations, was unveiled only a few hours before its adoption by elected officials of Congress. He plans to raise the country’s debt limit to just over $ 31 trillion.

It only remains for Joe Biden to promulgate the text.

Blank check

Raising the debt capacity of the United States is usually a formality, but this procedure has been the subject of very difficult 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.

“The rampant spending of the Democrats has already led to historic inflation, which is equivalent to a tax for all Americans,” denounced the elected Republican Elise Stefanik to justify her opposition to the measure.

And Democrats retort that raising the debt limit is used to pay off amounts already borrowed, including trillions of dollars spent under the Trump presidency.

The Republican opposition ultimately allowed them to employ a complex parliamentary procedure, whereby Democrats only needed their voices to raise the debt “ceiling”.

The adoption of this new maximum level of debt is a huge relief for Joe Biden, who faces in parallel other dangers in Congress: his gigantic social and ecological component of 1750 billion dollars, on which he is betting to “rebuild the world. ‘America better’ and save its popularity ratings, has remained in parliamentary limbo for months.

The head of the Senate promises to pass this plan, which is still the subject of intense negotiations, before Christmas, which promises the next heated negotiations on Capitol Hill.



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