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House sends debt limit hike to Biden to avoid default

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Washington — On October 12, Congressmen pushed for a short-term increase in the country’s debt limits, allowing the federal government to continue paying the bill in full until December, temporarily suspending an unprecedented default that would ruin the economy. I avoided it.

The $ 480 billion increase in the country’s borrowing cap cleared the Senate in a party vote last week. The House of Representatives approved it so quickly that President Joe Biden can sign it to law this week. Treasury Secretary Janet Yellen warns that measures to stop the country’s default will be exhausted by October 18, from which point the ministry will soon be unable to fully meet its government’s financial obligations. bottom.

Defaults have a tremendous impact on the global financial markets built on the security underlying US government debt. Regular government payments to social security beneficiaries, disabled veterans, and active duty personnel will also be an issue.

However, the bailouts provided by the passage of the bill are temporary and will force Congress to revisit the issue in December. The year-end backlog poses risks to both parties and threatens the turmoil near Biden’s first year in office.

Rep. Jim McGavan (D-Mass.) Said:

Republicans signaled that the next debt limit debate wouldn’t be easier, and Democrats warned not to expect their help.

“Unless the Democrats give up the dream of big government, socialist America, Republicans can’t and won’t support raising debt limits, helping them pave the Super Highway into a great qualified society. I can’t, “said Congressman Tom Cole (R-Okra.).

Procedurally, the House of Representatives voted in a single effective way to pass the Senate bill. A bill passed by a party vote of 219-206.

The current debt cap is $ 28.4 trillion. Both parties contributed to the burden with decisions that left the government rarely operating in the black.

The disastrous consequences of default are why lawmakers have been able to reach a compromise to lift or suspend debt caps, often after frequent rounds of brinkmanship since 2002.

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House sends debt limit hike to Biden to avoid default House sends debt limit hike to Biden to avoid default

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