Congress agreed on Tuesday to temporarily raise the United States’ debt limit by US $ 480 billion. The House of Representatives adopted this measure with the sole support of elected Democrats, against the backdrop of an intense standoff with the Republicans.
Without the adoption of this measure, the country could have found itself in bankruptcy as of October 18, had warned the Treasury.
This increase in the debt ceiling “should be sufficient to allow the federal government to continue to fully meet its commitments until early December,” the White House said in a statement.
President Joe Biden on Thursday promulgated the text raising the debt ceiling of the United States until December, announced the White House, allowing to ward off the prospect of a default with catastrophic consequences for the mega-power and the rest of the world.
The debt ceiling of the United States will eventually be temporarily raised. This is what Congress decided, at least until the end of the year, in order to offer a respite to the world’s largest economy before a new political battle that promises to be fierce to avoid a default. . Thanks to the sole support of elected Democrats (219 votes against 206, all Republican), the House of Representatives adopted a measure which plans to raise the debt limit of the United States by 480 billion dollars.
Already approved by the Senate last week, this text will be sent immediately to Joe Biden, who will promulgate it as soon as possible according to the White House. This will allow the country to honor its payments until December, or even at the very beginning of 2022, removing the prospect of a default with catastrophic consequences for the mega-power and the rest of the world. If this measure had not been adopted, the country could have found itself in insolvency as of October 18, warned the Treasury.
The government has expressed its distrust of a temporary solution. Dec. 3 “is a short timeframe” and “uncertainty remains in the longer term,” Treasury Secretary Janet Yellen told CNN.
Republicans are refusing to endorse any long-term measures to raise the debt ceiling because they claim it would be like giving Joe Biden a blank check to fund his sweeping investment plans.
These plans have not yet been adopted by Congress, however, and raising the debt limit therefore serves to repay sums already borrowed, including trillions of dollars spent under the presidency of former President Trump.
