The debt ceiling is the maximum amount of debt of the United States. Set by the US Congress, it must be lifted or suspended by December 15, otherwise the United States will no longer be able to honor payments to its creditors overnight and would have to slash spending.
This unprecedented situation would plunge American finance and economy, but also, by extension, international ones into the unknown and could cause a recession.
The United States, which like almost all major economies has lived on credit for decades in terms of public spending, has already repeatedly noted this famous
ceiling, which normally requires the votes of elected Democrats and Republicans.
But the Republican opposition refuses to do so this time, assuring that it would amount to offering a blank check to Joe Biden, at the same time as they accuse him of contributing to runaway inflation.
After weeks of negotiations, a deal reached on Tuesday, however, paves the way for a complex parliamentary procedure, whereby Democrats would only need a simple majority to raise the debt ceiling, which they could therefore do. with their voices alone.
I think it is in the interest of the country avoid default, Senate Republican Minority Leader Mitch McConnell said on Tuesday.
The procedure was validated by a vote in the House of Representatives Tuesday evening, which will allow the Senate to raise the debt ceiling at the end of the week. The lower house will then have to validate this increase in its turn, all before December 15.
The urgency is twofold.
Because Congress needs to get rid of this site as quickly as possible to finally debate the gigantic social and ecological plan of Joe Biden, thanks to which the president promises to
rebuild [l’Amérique] better.
This 1750 billion dollar project, very popular among Americans according to the polls, includes among other things free universal kindergarten and generous funding to reduce American greenhouse gas emissions. But he has been stuck for months in the US Congress.
Senate Democratic Majority Leader Chuck Schumer on Tuesday reiterated his willingness to offer Joe Biden this political victory
before the Christmas holidays.