US Congress cross and sword in increasing Reuters credit limit

War Richard Cowan

WASHINGTON (Reuters) – Democrats and Republicans in the United States will begin a monumental test of their courage in raising the U.S. government’s debt ceiling as Congress seeks to avoid the historic ‘default’ of debt.

Leaders of both the Senate and House, both Democrats, are expected to push for a referendum on raising the debt limit to $ 28.4 trillion by the end of September. This limit was technically violated on July 31, but was violated by the “extraordinary” actions of the Treasury Department.

Failure to do so may result in catastrophic debt repayment obligations or the temporary closure of certain federal activities. The default is unprecedented, but there have been three government stops in the last decade.

Add to that the pressure on Republicans to sit back and allow Democrats to take responsibility for defaults that could destabilize the financial markets, among other things, or take full responsibility for the uncontrolled federal debt.

Democrats have 50 votes in the Senate, less than ten of the 60 needed to pass most bills, including raising the debt ceiling, so Republican participation will be required.

Shay Aqabas, director of economic policy at the Bilateral Policy Center Research Institute in Washington, D.C., said, “Everyone agreed with their position.

Lack of negotiations American politicians “are not yet caught between the cross, the sword and the third object,” Agabas said in an interview.

Senate Majority Leader Chuck Schumer, a Democrat, and Republican leader Mitch McConnell laid out the definitions of the September war before going into recess in late summer (Northern Hemisphere).

“I can’t believe the Republicans will let us in by default,” Schumer told reporters. He pointed out that during Donald Trump’s White House years, Republicans in Congress usually raised the credit limit.