A joint group of US lawmakers, from both the Republican and Democratic parties, is preparing an urgent plan to confront the debt crisis that is regarding to hit the US economy.
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A group of representatives in the US Congress is preparing a plan to avoid the debt ceiling crisis.
US Republican Representative Brian Fitzpatrick said today, Sunday, that a bipartisan group of US lawmakers is preparing a plan to defuse a looming crisis over the country’s debt ceiling.
Fitzpatrick, co-chair of the Critical Policy Problem Solving Group, added that the proposal would change the government’s current federal debt ceiling, currently set at $31.4 trillion, to one that pegs debt. share of the gross domestic product.
Fitzpatrick appeared, on the American Fox News channel, today, Sunday, with the Democratic co-chair of the same congressional group, Josh Gottheimer, and made it clear that they are in the process of presenting a possible solution to build bridges, only, and added that the Republican Speaker of the House, Kevin McCarthy, will take the lead in negotiations with the House. White on the debt ceiling.
And the US government approached the specified legal borrowing limit, and the Treasury warned that its exceptional measures to manage monetary affairs may only allow the government to pay all its bills until early next June, which might expose it to the risk of defaulting on its obligations, including those related to Treasury bonds.
Washington’s current debt is equivalent to regarding 125% of GDP in one year. Fitzpatrick said the proposal he is working on with Gottheimer would force cuts in Washington’s budget if federal borrowing exceeds a set share of economic output, without specifying what share.
Republicans aim to use this crucial deadline in the House of Representatives to force spending cuts, and the narrow Republican majority in the House of Representatives has given enormous leverage to the more hawkish voices within the party.
US President Joe Biden said today, Friday, that he will discuss the debt issue with the Republican President of Congress, Kenneth McCarthy, who said he will meet with the president to discuss a responsible increase in the debt ceiling.
Earlier, the White House spokeswoman told reporters that the president would not Hardcore Republicans negotiate On the debt ceiling, and that this should not be used as a political football.
The United States of America is witnessing a sharp disagreement between the administration of President Joe Biden and the Republicans who control the House of Representatives, regarding the debt ceiling, which the dispute over may lead to default on debt payments.
Also read: Division within Congress.. The problem of the US debt ceiling is back once more
The confrontation between Republicans and Democrats over the debt ceiling in 2011 led to a downgrade by Standard & Poor’s, the credit rating of the United States, in a historic precedent.
There are current fears that failure to address the issue of the debt ceiling this time will lead to turmoil in global markets, and thus an economic downturn.
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What if the United States does not pay its debts?
And the US Treasury Secretary warned that an economic recession might result from defaulting on US debt, and might lead to a global financial crisis.
