US: Debt increase bill approved

With 222 votes in favor against 212 against, the House of Representatives approved last night Tuesday (s.s. in the early morning hours today Greek time) a bill that will allow to increase the borrowing limit of the US federal state, which currently stands at 28.9 trillion. dollars, in order to avoid the risk of the US being forced to declare a moratorium on payments, with potentially catastrophic consequences for the country – and beyond.

This is the first of two texts to be approved by Congress in the context of an unusual, complex maneuver that would require Democrats only to have their own votes to raise the debt ceiling.

The development became possible after the conclusion of an agreement earlier yesterday.

The debt limit is the maximum amount the US can borrow. It is set by Congress and must be increased or suspended by December 15, as otherwise the federal government will no longer be able to repay its debts to its creditors and will be forced to cut its spending.

This unprecedented situation would plunge the American financial markets and the American economy into crisis, dragging the world economy and causing a major recession.

The US, which like almost all of the world’s major economies has been living on credit for decades in terms of its public finances, has in several cases raised this inclusive “threshold”, which under normal circumstances requires the votes of both Democrats as well as Republicans.

But the Republican opposition categorically refuses to consent at this time, arguing that it would give a blank check to Joe Biden, whom he accuses of skyrocketing inflation.

After weeks of negotiations, it finally gave the green light yesterday, Tuesday, for the recourse to the maneuver approved by the Parliament.

“I think it is in the best interest of the country to avoid a delay in payments,” said Mitch McConnell, a strong leader of the Republican caucus in the Senate. He later said he expected the congressional body to vote on the measure tomorrow, Thursday.

The issue is doubly urgent.

Because Congress needs to overcome this barrier as quickly as possible to finally discuss Joe Biden’s giant social and ecological investment plan, which the White House aspires will allow America to be “better rebuilt.”

The 1.75 trillion spending package. popular polls suggest funding, among other things, to reduce greenhouse gas emissions and global warming. But he has been stuck in the US parliament for months now.

The leader of the Democrats in the Senate, Chuck Sumer, reiterated yesterday, Tuesday, his will to offer the political victory for Joe Biden, which would mark his approval “before the Christmas holidays”.

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