WASHINGTON - the US Treasury reaches its limit legal 14,29 trillion dollars on loans Monday, as the White House with severity to prevent lawmakers must approve an increase or a catastrophic default on debt risk payments.
With Washington in the handles of a total war policy on public finance, US Treasury Secretary Timothy Geithner has officially informed Congress that the Government had slammed into its debt ceiling and urged an increase.
The Secretary warned Democratic Senate Majority Leader Harry Reid in a letter that the United States would exhaust temporary repairs come August 2 and will face a choice between the draconian spending cuts or a defect as possible.
Geithner urged legislators to approve an increase in debt ceiling "as soon as possible," said action was needed "to protect the full faith and credit to the United States" and avoid the catastrophic economic consequences for the citizens.
Reid had no immediate reaction, but a spokesman for the Republican Senate Minority Leader Mitch McConnell, Donald Stewart, minimize the need for urgent and said action expenditure runaway constituted the greatest threat.
"Members of both sides of the aisle recognize that it would be more damaging to the economy of our country in the long term that does not raise the ceiling of the debt, of failing to bring down the debt," said Stewart.
Vice President Joe Biden has held talks with top Republicans in a bid to agree on what long-term budgetary expenditures should be related to a debt ceiling increase that lawmakers were finally all-but-certains to approve.
To avoid the ceiling at the top, Geithner said that the Government would stop automatic cycling of pension funds of the public service in the US Treasury debt, the manner in which they are traditionally stored, said.
The move will give the Treasury about 224 billion dollars of margin that it meets the needs of borrowing to cover the mounting of the Government budget deficit, which increased by an average of 124 billion per month since October.
White House spokesman Jay Carney said Geithner has taken "extraordinary measures" provide "some cushion" to the Government on 2 August but legislators pressed the action of delay to raise the ceiling.
"We must have a vote to lift the ceiling of debt because the consequences to do would be very serious, and those who suggest otherwise are whistling past the graveyard," said Carney.
"It is foolish to suggest something that we can somehow, as the United States, by default on our obligations and would not negative consequences seriously if we stopped suddenly pay our bills,", he added.
Republican enemies of President Barack Obama have warned that they will be countering any attempt to lift the debt ceiling, unless its democratic allies agree to massive long-term budgetary expenditures, mainly to beloved social programs.
Democrats say they know how Washington should strengthen his belt but have dazzled Republicans for holding squarely on the increase in taxes and bloody their for call cuts for health insurance for the elderly and disabled program.
Some Democrats on the left of the party have also complained that spending cuts will stall economic recovery and risk leaves the beak of millions of Americans in the hunt for jobs.
While legislators were expected to vote to raise the ceiling of the debt before the deadline on critical August, the global war on spending and taxes had to drag through the Obama 2012 re-election bid.
The yields of U.S. Treasury bonds, which indicate how the markets view the risk of the debt, fell Monday as investors shrugged off the question of the ceiling for the moment.
The 10-year Treasury bills was 3.17%, close to its percentage of 3.14 low for 2010, while the 30-year bond was also at 4.3%, slightly lower for the year.
Carney, said the White House had continued "regular consultations" with legislators "are addressing this issue seriously and looking at the need to respond in a balanced manner."
"This President is committed to do something significant and our problem of deficit and debt seriously long term and it is an opportunity to deal with that," he said.
No comments:
Post a Comment