Washington suspends investments in two public pension funds to continue negotiating Republicans with a debt ceiling increase of
POZZI MICHAEL / THE COUNTRY
The U.S. Treasury has begun to implement the first emergency measures to delay the most dangerous scenario in which no margin is seen to pay all bills, including the interest generated by its debt. The mechanism was triggered after it officially went beyond the limit that Uncle Sam has to borrow, set in the $ 14.3 billion (just over one billion euros).
Washington today announced the U.S. Congress to suspend investments in two public pension funds in order to have cash with which to operate and meet their commitments. Timothy Geithner, head of Treasury estimates that thanks to this measure has some leeway until August 2. At that time, the risk of debt default will be real and catastrophic consequences.
During the weekend, President Barack Obama warned that the country can not afford this. He warned that if the U.S. gets to the point of being unable to meet its obligations, it will enter a recession "even worse" than the last, which in turn lead to a financial crisis with serious consequences. This prediction also shared the Federal Reserve chairman, Ben Bernanke.
The debt ceiling is set by the U.S. Congress. Is the limit legal that the government has to borrow. The first time the cap was established in 1917. Each time you run the risk of going over, lawmakers on Capitol Hill to authorize an extension of that range. Bernanke said Thursday that rates will rise is not done and will worsen the deficit.
That limit was increased ten times in the last decade. Both Democrats and Republicans agree that America faces a serious challenge on the fiscal front, the deficit way to set a new record. And they must show the market we are able to reach an agreement to put the accounts in order. However, they differ on how to meet this challenge.
John Boehner, leader Republicans in the House of Representatives, said he was ready to compromise "without having to wait until the last minute." To two conditions: that there is a real reduction in spending and that there is no tax increase. "The greatest threat to our country and our economy is not addressing the fiscal problem," clinched.
Republicans also point to the President that when he was senator and he opposed raising the roof. A dangerous rhetorical game, which explains the dollar again losing positions towards the European single currency despite the uncertainty about the rescue of Greece and the scandal plaguing the leader of the International Monetary Fund, Dominique Strauss-Kahn.
POZZI MICHAEL / THE COUNTRY
The U.S. Treasury has begun to implement the first emergency measures to delay the most dangerous scenario in which no margin is seen to pay all bills, including the interest generated by its debt. The mechanism was triggered after it officially went beyond the limit that Uncle Sam has to borrow, set in the $ 14.3 billion (just over one billion euros).
Washington today announced the U.S. Congress to suspend investments in two public pension funds in order to have cash with which to operate and meet their commitments. Timothy Geithner, head of Treasury estimates that thanks to this measure has some leeway until August 2. At that time, the risk of debt default will be real and catastrophic consequences.
During the weekend, President Barack Obama warned that the country can not afford this. He warned that if the U.S. gets to the point of being unable to meet its obligations, it will enter a recession "even worse" than the last, which in turn lead to a financial crisis with serious consequences. This prediction also shared the Federal Reserve chairman, Ben Bernanke.
The debt ceiling is set by the U.S. Congress. Is the limit legal that the government has to borrow. The first time the cap was established in 1917. Each time you run the risk of going over, lawmakers on Capitol Hill to authorize an extension of that range. Bernanke said Thursday that rates will rise is not done and will worsen the deficit.
That limit was increased ten times in the last decade. Both Democrats and Republicans agree that America faces a serious challenge on the fiscal front, the deficit way to set a new record. And they must show the market we are able to reach an agreement to put the accounts in order. However, they differ on how to meet this challenge.
John Boehner, leader Republicans in the House of Representatives, said he was ready to compromise "without having to wait until the last minute." To two conditions: that there is a real reduction in spending and that there is no tax increase. "The greatest threat to our country and our economy is not addressing the fiscal problem," clinched.
Republicans also point to the President that when he was senator and he opposed raising the roof. A dangerous rhetorical game, which explains the dollar again losing positions towards the European single currency despite the uncertainty about the rescue of Greece and the scandal plaguing the leader of the International Monetary Fund, Dominique Strauss-Kahn.
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