The unwillingness of the legislative bodies to raise the Ceiling Ceiling may lead to the fact that the United States will be on the verge of an economic catastrophe. Minister of Finance of the Country of Janet Yellen urged Congress until October to decide on debt to avoid default on government payment obligations, Bloomberg writes.
According to Yellow, the potential default “will speed up the historical financial crisis and aggravates the damage from the coronavirus pandemic.” The economy will be recession, and the United States will generally become a much weaker country. “Neither a delay nor default is unacceptable. The lawmakers must act quickly,” the Minister of Finance added.
In the penultimate week of September, the Lower Chamber of Congress votes for raising the Limit of the State debt in 28 trillion dollars. However, the confrontation between the democratic and republican parties does not make confidence in unanimous decision making and puts the US economy under threat of a large-scale crisis.
Restrictions on the size of public debt again entered into force in the United States in early August – two years after their cancellation. In 2019, the state debt limit was 22 trillion dollars, but in August of the same year, the limit value was canceled. In June 2021, debt rose to 28.5 trillion dollars, and the Ministry of Finance encouraged to raise its limit to avoid catastrophic consequences for the economy. The inaction of the legislative regulators will force the Ministry of Finance to go for emergency measures – for example, to reduce investment in the funds for the pensioners of the public sector.
In June, Russia increased the investments in the US public debt for 200 million dollars. The total investment in US state bonds amounted to $ 4.006 billion. Of these, 305 million are long-term investments, and 3,701 billion are short-term. Russia is not included in the TOP-30 Holders of US State Securities. The ranking leaders are Japan (1,2773 trillion dollars), China (1.619 trillion) and the United Kingdom (452.9 billion).