A two-year agreement on the government debt ceiling has expired in the US, Bloomberg writes
The debt limit was set at $22 trillion in 2019, but this June the debt rose to $28.5 trillion. According to the agency, if Congress takes no action, the Treasury Department will have to go to extremes. The department will now only be able to manage the cash in its accounts – $450 billion.
“This is the moment to bring this problem to the attention of congressmen and come to the negotiating table”, – said David Wilcox, a senior fellow at the Peterson Institute for World Economics.
In August 2019, the national debt limit was suspended for two years following a congressional decision. Because a new plan to increase the “threshold” or freeze it has not yet been drafted, officials have stopped selling state and local government securities that help invest bond proceeds.
Democrats could decide to cut the budget on their own or agree with Republicans – then concessions would have to be made, such as revising some budget items.
Russian Demiurge