US on the brink of default: Republicans block debt expansion, Treasury will run out of cash

The republicans of Senate of United States are ready to block an invoice at raise the country’s debt ceiling and fund the federal government, increasing pressure on Democratic lawmakers to act alone and avoid a budget crisis at the end of this week.

Lakemara representatives, Democrat-controlled, earlier this month approved a measure to avoid the October 1 government shutdown and extend the US debt limit until December of next year.

But the 50 Republicans of the Senate –Controlled by Democrats by a narrow margin – they are poised to reject the bill when Chuck Schumer, the Democratic Majority Leader in the Senate, presents it on Monday night. Given that it takes 60 votes to pass the bill in the upper house, it is almost certain that it will fail.

The US Treasury on the verge of default: 5 keys to understanding what’s going on

The vote will end a weeks-long standoff between Democrats – who have asked the Republican Party sign the raising of the limit Treasury debt– and the Republicans, who stubbornly refused to support the measure and repeatedly accused the party of Joe biden of a public expenditure imprudent.

The Last tax showdown between Democrats and Republicans comes as Democratic lawmakers struggle to iron out internal party divisions to push through the iconic $ 1.2 trillion infrastructure bill and a packet of social investments of US $ 3.5 trillion.

Nancy Pelosi, the democratic president of the House of Representatives, provided for a decisive vote on the infrastructure bill by Thursday, the very day that federal government funds run out.

The republicans voted to suspend the debt limit three times during the administration of Donald trump, in efforts supported by Democrats.

United States: Treasury estimates that it will run out of liquidity in October and worries about a default

This time, however, the opposition party, led by the minority leader in Senate, Mitch McConnell, insisted Democrats should skip the ‘obstruction‘Senate – which requires the support of at least 10 Republicans for a measure to become law – and to act alone to raise the debt ceiling and avoid a closure of the government before the deadline of 12:01 on Friday.

Janet Yellen, US Secretary of the Treasury., said that not raising the federal debt ceiling would be a “disaster”. The Bipartisan Policy Center, a study center for Washington, estimated last week that the US government could default on its bonds in mid-October if the debt ceiling is not raised.

But the Republicans of the Senate have not hesitated so far, arguing that there is no risk of calamity because Democrats can use Senate procedure to lift the debt limit and finance the federal government yourself. Democrats now control the upper house of the Congress, at 50%, and the vice-president Kamala harris can vote for a tiebreaker.

The republicans They are also trying to destroy the legislative program of Biden just over a year before the 2022 midterm elections, when the control of the House of Representatives and of Senate be involved.