October 27, 2021

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House approves raising US debt ceiling to avoid installments |  Economy

House approves raising US debt ceiling to avoid installments | Economy

House of Representatives United States The contract was approved this Tuesday (12) Raise the credit ceiling temporarily Thus avoiding default – i.e., a Default – It will cause recession and turmoil in world markets. The text has already been approved by the Senate.

Adding others — in advance — seems to dissolve the crisis, at least until mid-December US $ 480 billion Available Credit Limit – For the first time in its history the country comes six days before it can borrow or repay. With increase, The credit limit will reach $ 28.9 trillion.

The dependence will have major repercussions on global markets, as it depends on US financial security. Within the country, it will be difficult for the government to pay the beneficiaries of social security schemes, war veterans and active military personnel..

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However, the issue should be returned to the US in December, when Congress should amend the ceiling. The trend will be even more difficult, because that’s when parliamentarians define the budget. When there is no consensus, there is a “shutdown”, that is, the cessation of government activities.

Republicans warn it will cost more

In a letter to Biden on Friday, Senate Opposition Leader Mitch McConnell warned Republicans that they would not support Republicans if they wanted to raise the Senate debt ceiling.