WASHINGTON: The US Finance Department is projected to spend its loan authority in October or November, the Congress Budget Office said on Wednesday, as a battle between Democrats and the Republicans because the country’s debt ceiling erupted in Congress.
“If that happens, the government will not be able to pay its obligations completely, and it will delay making payments for its activities, default for its debt obligations, or both,” said CBO non-partisan in a statement.
This records this time line can change depending on the speed of collection of government revenues and expenditure.
Failure to overcome the difference whether the cutting of government expenditure must accompany the increase in the debt limit of the law, which is currently set at $ 28.5 trillion, can cause the closure of the federal government – as has occurred three times in the last decade – or even default debt.
Democratic colleagues President Joe Biden narrowly controlled the Senate and the House of Representatives.
There are no Senior Republicans who mention the threat of closing in public reports recently.
Democrats insist on increasing “clean” debt limits without limits by fighting for the reduction of expenses.
The Top Republican Senate, Mitch McConnell, said on Wednesday that his party members would not not support the increase in the debt limit considering the current democratic impulse for multi-trillion dollar infrastructure investment bills.
“I can’t imagine there will be a single Republican voting to raise the debt ceiling after what we have experienced,” said McConnell to the Punchbowl news that focuses on Congress.
McConnell suggested Democrats overcome the debt limit in the size of the second expenditure they expected to be passed without the sound of the Republic in the maneuver called reconciliation.
The majority leader of the Senate Chuck Schumer called McConnell’s statement “shameless, cynical and at all politically.” Schumer said the Republican Party did not cause concern during the presidency of the Republic of Donald Trump and that some debt was related to emergency assistance in response to Covid-19 pandemics.
‘Do it quickly’ do the leading Democrats, chairman of the Senate Finance Committee Ron Wyden, accused the Republican Party trying to launch a protracted debate at the cost of popular federal programs such as social security to obscure the debt limit problem.
Wyden rejects McConnell’s advice that the debt limit bill is attached to the only Democratic infrastructure investment bill that can advance this fall, by saying, “We will do it quickly” through more conventional procedures.
The Ministry of Finance on July 31 technically crashed into the debt limit of the law.
Just like the maximum personal credit card, the debt ceiling is the amount of money permitted by the federal government to be borrowed to fulfill its obligations.
These range from paying military salaries and IRS tax returns to the benefits of social security and even interest payments for debt.
Because the government spends more than accepted in income, it continues to operate by borrowing more and more.
Over the years, the debt limit of the law was raised to a certain dollar level.
Recently, Congress has set limits to a certain date in the future.
Parliamentarians often try to expand the authority of the loan outside the next US election so it is not a campaign problem.
Central Semester Elections Who Democrats Maintain Congress Controls Stipulated for November 2022.
If the Congress does not raise a debt ceiling from $ 28.5 trillion at this time when the Ministry of Finance’s loan authorities run out, the French Secretary of Janet Yellen is expected to take special steps for avoid the default of the government.
The stop-gap steps are effective only for a short time.
Failure to raise the debt ceiling can lead to repetition of government shutting down in 2013, January 2018 and 35 days from the end of December 2018 to January 2019.
Other factors also play a role in interference.
In a sign of Wall Street concern about the approaching limit, resulting in short-term short-term treasury debt has edged up to around 0.05%, after floating close to zero since the beginning of the pandemic.