US averts first-ever default as Congress passes debt deal

US senators approved a moratorium on the federal debt ceiling just four days before a deadline set by the Treasury Department, ending weeks of tough negotiations to remove the threat. of free bad debt.

Economists say the country may run out of money to pay its bills by Monday, leaving little room for a delay in passing the Appropriation Act, which will end government spending in the time the federal debt extends to 2024. I’m warning you.

The bipartisan bill, introduced by Democratic President Joe Biden and Republicans, passed the Senate by a majority of 63-36 a day after it passed the House.

“America can breathe a sigh of relief because we are avoiding default in the process, which has been our north star since the beginning,” said Senate Majority Leader Chuck Schumer. .

“The consequences of default are very bad…but despite the ups and downs and twists and turns, it’s very good for the country that in the end both countries come together to avoid default.” .”

Now that the bill has been delivered to Biden’s desk for signature, it ends a day of bitter backlash between party leaders and lawmakers who complained about last-minute details and threatened to rush it. sending the bill. .

For months, Democratic leaders have warned that a primary failure would cost millions of jobs, $15 trillion ($22 trillion) in lost housing, mortgage and other payments.

“Behind the Eight Ball”

Much of the night’s drama began as a series of rejected amendments sought by Republican lawmakers delayed action and at one point threatened to take up to a week.

Senators have approved 11 amendments to the 99-page document, many of which oppose funding levels for programs they favor, from China’s border controls and trade. to taxes and the environment.

Advocates have criticized Mr. Biden has proposed an $886 billion dollar budget to cap Pentagon spending, and at one point threatened to veto the bill entirely.

In the end, the two countries agreed to sign another bill that would provide money for Ukraine’s defense against Russian aggression and promote US national security interests in the face of China’s aggression. the Middle East and Taiwan.

“As it stands, this bill will put our military behind by 8-percent… The first and most important amount that we allocate in our budget each year is the money that will be used to protect and defend the interests of America and our countries. hei.”

The U.S. spends more. in collecting taxes, so they borrow money by issuing government bonds, which are considered one of the most reliable investments in the world.

About 80 years ago, politicians set limits on how much federal debt could be collected.

political evil

Since then, with support from Democrats and Republicans, the cap has been raised more than 100 times, often without drama, to help the government meet its goals. pledge money, and now it is about $31.5 trillion.

Both parties view raising the debt limit as politically dangerous, but agree that if the government can’t pay its debts, the U.S. economy will sink into recession and risk international markets.

Republicans want to kill the extension to oppose what they see as excessive spending by Democrats ahead of the 2024 presidential election, although raising the debt ceiling is the both parties have promised.

Kevin McCarthy, the top politician in the Republican-led House, is facing pushback from the far right, saying he has significantly reduced spending, but the bill he spends his time in negotiating a great victory for those who do not. Acceptance.

He promised 150 House votes (two-thirds of the legislature) to defeat right-wing terrorism, but fell short by one vote and needed the support of Democrats to send the bill to the Senate.

Across Pennsylvania Avenue, the election was seen as a landslide victory for Mr. Biden, who defended almost all of his priorities in the House against the threat of deep cuts from Republicans.

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