Republican U.S. Representative Brian Fitzpatrick has revealed that a bipartisan group is preparing a plan to change the government’s current debt ceiling from a fixed number, currently set at $31.4 trillion, to a ratio linking the ceiling of debt to GDP.
This proposal comes after the debt ceiling crisis has returned again, after the debt has exceeded the specified ceiling.
US Treasury Secretary Janet Yellen said the alarm had sounded again in Washington and the US Treasury announced exceptional measures after the debt ceiling exceeded allowable levels. at the beginning of the twenty-first century, to reach 31.5 trillion dollars, equal to 130% of the economy.
For his part, US President Joe Biden said US debt is likened by experts to a “snowball” that grows in size over time as the Republican and Democratic parties traditionally throw it at due to their policies of tax cuts, spending expansion and economic stimulus in times of recession.
And US Treasury Secretary Janet Yellen has warned that the US’s inability to pay its debts would undermine the dollar as a reserve currency and enter the markets. in a state of panic, which defined economic chaos.
“The ministry announced exceptional decisions to pay government obligations with the aim of avoiding any state of paralysis or government shutdown on June 5, and the decisions came to buy time until the two sides reach an agreement to solve the dilemma,” according to Yellen.
There are fresh warnings that failure to raise the debt ceiling before June portends economic disaster.
In a moment in which some economists express concern about the continued hike of the debt ceiling, which could lower the US credit rating, while some believe that the unprecedented volume of federal government spending has become a source of danger for the private sector.
The White House believes that US public debt could increase by $1.3 trillion annually over the next ten years… US debt is a new and old dilemma that emerges whenever it comes time to repay. .. As for the solutions, they are bitter.
Read More About: Business News