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Raising the debt limit passed by the house.Sent to Biden for signature

Defaults have a tremendous impact on the global financial markets built on the security underlying US government debt.

Washington — Tuesday House members pushed for short-term growth National debt limitAllows the federal government to continue paying the bill in full until December, temporarily avoiding unprecedented defaults that would have devastated the economy.

$ 480 billion increase in national borrowing cap Cleared the Senate last week By partisan vote. The House of Representatives approved it so quickly that President Joe Biden can sign it to law this week. Treasury Secretary Janet Yellen warned That step to stop the country’s default will be exhausted by Monday, from which point the sector will soon be unable to fully meet its government’s financial obligations.

Defaults have a tremendous impact on the global financial markets built on the security underlying US government debt. Regular government payments to social security beneficiaries, disabled veterans, and active duty personnel will also be an issue.

However, the bailouts provided by the passage of the bill are temporary and will force Congress to revisit the issue in December. NS Year-end backlog It increases the risk of both parties and threatens the turmoil near Biden’s first year in office.

Jim McGavan, Congressman of D-Mass, said:

Republicans signaled that the next debt limit debate wouldn’t be easier, and Democrats warned not to expect their help.

“Unless the Democrats give up the dream of big government, socialist America, Republicans can’t and won’t support raising debt limits, helping them pave the Super Highway into a great qualified society. You can’t, “said Republican Rep. Tom Cole. Okra.

Procedurally, the House of Representatives voted on Tuesday and passed the Senate bill. A bill passed by a party vote of 219-206.

Senate Republican leader Mitch McConnell, R-Ky. The current conflict over debt caps was eased when they agreed to help pass short-term growth. But he insists he will never do it again.

so Letter sent on friday McConnell told Biden that Democrats would use the same process that they tried to use to pass Biden’s large-scale social spending and environmental plans to raise the next debt limit. Said they had to handle it themselves. The settlement allows legislation to pass the Senate with 51 votes instead of the normally required 60 votes. In the 50-50 split Senate, Vice President Kamala Harris will give the Democratic majority a tiebreaker vote.

Members of both parties used debt cap voting as a leverage for other priorities. Speaker of the House Nancy Pelosi said he wouldn’t support raising the debt cap to allow the Republicans to give the rich another tax cut when President Donald Trump took office. Threatened to vote against the increase in the tax. And in 2011, Republicans forced President Barack Obama to accept a deficit cut of about $ 2 trillion as a condition to raise debt limits, but legislators later rolled back some of those cuts.

Pelosi told reporters Tuesday that Republicans and Democrats have voted against raising debt caps for years.

Pelosi hopes to raise its debt cap in a bipartisan way in December this year because of the interests that Congress is involved in. But she also submitted a bill sponsored by Democratic Rep. Brendan Boyle, shifting the obligation to raise debt limits from parliament and saying to the Treasury Secretary “I think it’s beneficial.”

McConnell focuses on debt limits and Biden’s $ 3.5 trillion plan puts it into law.

In a letter to President McConnell, “Capitol Hill’s adjutant has time to argue that he is lacking in addressing debt caps through an independent settlement, and has all the tools to do so.” Said. My help. “

McConnell was one of 11 Republicans in favor of the Democratic Party, pushing the debt cap grace to the final vote. McConnell and his Republican colleagues then voted against the final pass.

The debate over debt caps is sometimes personal. McConnell suggested last week that Democrats were playing “Russian roulette” in the economy because they didn’t address debt caps through the process he claimed. He called Pelosi to travel to Europe last week.

“I can only speculate that she wants the full trust and credibility of the United States to be organized,” McConnell said.

Pelosi did not let the shoot pass. “Russian roulette in Moscow Mitch. Interesting,” he said.

Democratic Party leader Steny Hoyer said Tuesday’s vote dates back to President Ronald Reagan for the 50th time to vote for an extension of debt restrictions.

“No one has a clean hand when it comes to debt limits,” he said.

Heuer called it a “poor deal” because the Senate bill only allowed a temporary extension.

“And I’ll play this game again. It’s a sneaky and irresponsible act for a familiar adult,” Heuer said.

Republican Rep. Chiproy said he would like to “thank” Heuer for sharing his previous vote to raise the debt cap 49 times.

“When he joined the group, he was in debt of about $ 1 trillion. On behalf of the Americans looking at $ 28.5 trillion in debt, thank you.”

The current debt cap is $ 28.4 trillion. Both parties contributed to the burden with decisions that left the government rarely operating in the black.

The disastrous consequences of default are why lawmakers have been able to reach a compromise to lift or suspend debt caps, often after frequent rounds of brinkmanship since 2002.

The current debt cap is $ 28.4 trillion. Both parties contributed to the burden with decisions that left the government rarely operating in the black.

The disastrous consequences of default are why lawmakers have been able to reach a compromise to lift or suspend debt caps, often after frequent rounds of brinkmanship since 2002.

A recent Moody’s Analytics report warned that “even if global financial markets and economies are disrupted and resolved quickly, Americans will pay for this default for generations.”

Raising the debt limit passed by the house.Sent to Biden for signature

Source link Raising the debt limit passed by the house.Sent to Biden for signature

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