The leader of the Republican minority in the Senate Mitch McConnell found a temporary salvation for the US public debt, having encouraged both Congress Party to conclude a short-term agreement on the abolition of the borrowing ceiling, transmits CNBC. Such an initiative in the event of an implementation is able to prevent default.
This is not about expanding the boundaries of the state holder limit, but about their complete temporary cancellation, which has already occurred the last two years – from 2019, when the amount of borrowing was 22 trillion dollars, their limit importance was frozen for two years. At the moment, the size of the public debt is approaching 29 trillions of dollars.
In his Twitter, McConnell accused a democratic party in creating a “approaching crisis”, noting that their Republican opponents will allow us to apply ordinary procedures for improving the ceiling of the public debt in December.
previously representatives of Republicans, including McConnell, have repeatedly stated that the party will not vote for the increase in the debt limit, and instead will insist on its complete cancellation. Such an approach caused a sharp response from the Democrats and ran from them President Joe Bayiden, as well as Minister of Finance, Janet Yelevlen.
The term of the current freezing of the limit value of borrowing will expire on October 18. If by this time the parties do not come to the decision, the government will not be able to pay timely on current obligations and thereby allow default. According to most economists, such an outcome threatens the country a serious crisis.