US national debt hits ceiling again, government takes emergency action | Economy
The US national debt has risen so much that, in the absence of emergency measures, the country will soon face payment problems. According to its own laws, the United States is not allowed to have more than $31.4 trillion (nearly 29 trillion euros) of national debt, but the country will one day reach that ceiling, or may have already reached it.
Without emergency measures, the US government will be forced to reduce its spending. In the past, this has led to temporary reductions in payments to civil servants, for example by closing nature parks and reducing the number of coast guards. In such a case there is a shutdown.
This has not happened yet, but the government has already taken action, giving her a few months of relief. For example, payments to pension funds are deferred and benefits can be reduced to pay off loans instead.
The government would prefer to see the debt ceiling raised by the Senate and House of Representatives (which is similar to the Senate and House of Representatives). But it doesn’t happen without a fight. Perhaps Republicans, who play an opposition role, will simply not agree and gain a majority in the House of Representatives.
It is expected to take months before an agreement is reached. The government led by Democratic President Joe Biden may be forced to make concessions to Republicans. Although higher debt ceilings often lead to problems, American policy has always succeeded in the end.
If the cap is not lifted, it means that the US government will not be able to service some of its debt. This is very bad for the creditworthiness and standing of the country, as the two parties have always reached an agreement so far.
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