The US Congress made a decision that allowed the country to avoid a huge economic crisis and theoretical default.
The two opposing parties managed to find a common solution and increase the US borrowing limit by $480 billion, which will avoid problems until December 3.
President Joe Biden was ready to make this decision long ago, but the first step was up to the House of Representatives of Congress.
But the Republicans were not ready for such a turn and had previously blocked the decision to adopt the corresponding bill.
As a result, it was decided to raise the government debt ceiling, but “temporarily.”
As US Treasury Secretary Janet Yellen previously stated, the treasury was supposed to be empty by October 18.
Next, a default should have occurred, from which either the procedure of raising the government debt ceiling or suspending the limit could have saved it.
Biden personally called on Republicans to unblock the bill and allow the Senate to vote on raising the national debt to avoid undermining confidence in the world’s reserve currency.
Under US law, the national debt ceiling cannot be exceeded without the consent of Congress.
On October 1, the United States surpassed $28.4 trillion. Already on October 18-19, analysts predicted a default for America.
But as history shows, most often an economic indicator acts as a tool of political bargaining in the hands of opposing forces in the US Congress.
