The closed-door agreement reached last weekend between the White House and congressional leaders must be passed by both houses by June 5. It is on this day that the U.S. Treasury estimates that it will run out of cash and unable to pay all its bills. It is therefore imperative that it be able to issue bonds again at the risk of causing the United States to fall into a technical default. Paradoxically, the suspense that captivates Washington and Wall Street concerns a legislative package of spending freezes that will have only a marginal influence on the US economy and the trajectory of public debt.
The compromise authorizes above all the increase of the stock of public debt beyond 31.400 trillion dollars. If it is not passed by Congress, a financial catastrophe with global repercussions is likely. But the debt ceiling is only eliminated for two years. And until then, uncle's debt...
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