country’s outstanding public debt is already $38.82 million
above the statuary debt ceiling and now at $16,738,220,000,000.00,
according to Treasury
Weafer from the Economist Macro Advisory Consultancy says the numbers
show “that the debt issue along with the deficit is two
very structural problems in the US that remain unresolved and without
any clear mechanism on how they are going to be resolved”.
the short term it doesn’t cause any immediate crisis and that’s
why I guess the news is not widely covered, ”
Weafer told RT.
American economy grew at 1.8 percent during the first three months of
the year, lower than its 2.5 percent average pace during the last two
decades. The unemployment rate, at 7.6 percent in June, remains above
its 6 percent average during the period, Reuter’s reports.
the US Fed and politicians are speaking about recovery, that US
economy which is picking up and looking stronger next year, the
unsolved debt and deficit issues may reverse the process, Weafer
US budget deficit has only been twitted down by a few hundred million
dollars. It’s still massively in deficit, and therefore the amount
that the US government needs to borrow to fund that is still rising,
so we’ve reached this technical limit and it will go higher. These
are issues that still need to be resolved and they will determine
whether or not the pace of recovery can be expanded or whether it
will be temporary and reverse next year.”
Thursday President Barack Obama criticized House Republicans for
demanding conditions on raising the US debt ceiling as he tries to
shape the coming congressional debate over the nation’s budget
priorities, Reuters reports. Obama accused Republicans of skirting
responsibility to “pay the country’s bills” and refusing to
spend for needed investments in education, energy and research.
not an economic plan,” Reuters
quotes Obama. “That’s
just being a deadbeat.”
Speaker John Boehner earlier this week said Republicans won’t agree
to raise the debt ceiling without spending cuts. The current limit
was expected to be reached sometime between October and December,
according to Reuters.
the debt ceiling debate two years ago, lawmakers and the White House
battled for months before Obama signed an increase into law on Aug.
2, 2011, the day the Treasury Department warned that US borrowing
authority would expire, Reuters reports.