US hit debt ceiling of $31.4 trillion, treasury taking ’emergency measures

US hit debt ceiling of $31.4 trillion, treasury taking 'emergency measures

The US hit debt ceiling of $31.4 trillion

The United States it’s hit its borrowing cap of 31.4 trillion dollars the treasury has now started taking Extraordinary Measures to prevent a debt default as the U.S Congress heads towards a high-stakes clash between Democrats and the Republicans over raising the borrowing limit such Extraordinary Measures can help reduce the number of outstanding debts subject to the limit

which is currently as I mentioned set at 31.4 trillion US dollars but the treasury wants that the tools would only help for a limited time no longer than six months so basically the debt ceiling that’s the maximum amount of money the treasury is authorized to borrow to pay its bills on Thursday with debts climbing up to the

Limit the Department of Treasury will not be able to issue new debts to pay off those overdue which leaves the likelihood of defaulting quite High here treasury secretary Janet Yellen called on U.S Congress to raise the debt cap however the Republicans who control the House of Representatives recently did not agree and have called for spending cuts which

could cause economic shock waves globally house representative speaker Kevin McCarthy said that he believes the Democrats would agree to the cap government spending to award a U.S debt default he also wants to discuss this idea with President Joe Biden who wants to put the nation in some type of threat at the last minute that’s something nobody wants

to do that’s why we’re asking for less change in our Behavior now let’s sit down and analyze that the crisis would impact older and vulnerable Americans who rely on government programs that would be impacted if the government shuts down first of all some people or businesses might not get paid who are expecting to be compensated by the

the federal government in particular programs and we don’t know who those individuals or entities would be there could be rating downgrades from the credit rating agencies who no longer think that we are the gold standard when it comes to borrowing the 31.4 trillion dollars is and artificially imposed Gap the debt ceiling it’s been increased roughly 80 times

since 1960s Congress created the debt ceiling in 1917 to give the government greater borrowing flexibility and it must approve each increase to ensure that the United States meets its debt obligations and avoids a catastrophic default for more on this our correspondent Susan the rain has sent us the support from New York listening house Speaker Kevin McCarthy has

promised his members that he will not move to raise the spending bill without spending concessions from President Biden however the president has signaled that he will not negotiate at all over the spending limit with the Republicans no one in Washington wants to be blamed for triggering a default and while the Republicans are correct in trying to

stop The Reckless spending that has been going on for the past four years after all according to reports U.S debt held by the public is now about a hundred percent of the GDP the problem is they have a small majority in the house and they don’t control the Senate so for the Republicans they have to be very

Also Read: https://www.reuters.com/legal/us-supreme-court-releases-report-abortion-ruling-leak-2023-01-19/

careful in picking their spending concessions and then laying them out and explaining them in reasonable terms notably to the American public worst case scenario for the Republicans would be to talk tough now and that ultimately given at the end that is after all perhaps what the Democrats are hoping will happen and hence President Biden is not coming.

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