President Joe Biden signed into law the state bill on Thursday, which would temporarily increase the state’s debt ceiling from $ 480 billion to $ 28.5 trillion, rejecting the possibility of a US technology bankruptcy.
On Tuesday, the Democratic-dominated House of Representatives and former U.S. Senate chose such a solution.
Reuters notes that short-term measures were taken in line with party preferences to avoid the problem of paying off public debt. Republicans did not want to agree to a long-term increase in the debt ceiling because they feared it would give the Biden administration an independent hand to fund large investment projects in the social sector and climate policy. Democrats must work to raise the debt ceiling because their policy will require large budgetary resources, ”they stressed.
In early August, the two-year period of suspension of the US debt ceiling ended, and so-called finance ministry action was taken. Urgent measures to avert technical bankruptcy in the state, which could have far-reaching consequences for global financial markets.
The United States finances its spending by spending money – bidding regularly on bonds of various maturities. The United States has never been bankrupt and its government bonds are considered the safest investment in the world. They are denominated in dollars – the main currency used by central banks and financial institutions around the world. U.S. debt securities are considered the backbone of the global financial system.
“Twitter’s irretrievable researcher. An amateur social media lawyer. Award-winning music expert. Became an addict. Easily lethargic.”