![]() ![]() Moody’s Analytics has estimated that a default of no longer than a week would lead to the loss of 1.5 million jobs. White House estimates say a prolonged default could cause 8.3 million job losses and a world-shaking recession, while even a brief default could lead to 500,000 fewer jobs. If rating agencies such as Fitch were to actually downgrade America’s debt, it would mean that Washington would have to pay higher interest rates on Treasury bonds, notes and bills. On Wednesday night, the rating agency Fitch put the nation’s credit on “Rating Watch Negative,” which amounts to a warning that it might downgrade the U.S. ![]() Yellen and economic experts have said it could be “catastrophic.” But a first-ever government default would threaten the economy. There isn’t really a blueprint for what would happen. WHAT HAPPENS IF THE DEBT CEILING ISN'T RAISED? But he launched negotiations after House Republicans passed their own legislation and made clear they would not pass a clean debt ceiling increase. always pays its bills and defaulting on debt is non-negotiable. Democrats oppose those requirements.īiden had insisted on approving the debt ceiling with no strings attached, saying the U.S. They also want to attach other priorities, including stiffer work requirements on recipients of government cash aid, food stamps and the Medicaid health care program. The Republicans say the nation's debt, now at $31 trillion, is unsustainable. House Republicans, newly empowered in the majority this Congress, are refusing to raise the legal limit unless Biden and the Democrats impose federal spending cuts and restrictions on future spending. The debt limit vote in more recent times has been used as a political leverage point, a must-pass bill that can be loaded up with other priorities. Once a routine act by Congress, the vote to raise the debt ceiling allows the Treasury Department to continue borrowing money to pay the nation's already incurred bills. WHAT IS THE DEBT CEILING FIGHT ALL ABOUT? ![]() and global economy depending on how long the standoff goes.Ī look at the negotiations and why they are happening: A default would potentially devastate the U.S. Treasury Secretary Janet Yellen warned Congress on Friday that the government could default as soon as June 5 - four days later than previously estimated. And I want to be able to solve this problem.” “I thought we made progress yesterday," he said. That cause may take the form of a conscious vice or an unconscious weakness but whatever it is, it stubbornly retards the efforts of its possessor and, thus, calls aloud for remedy.McCarthy said he did not know whether they would finalize the details in the next 24 hours. In the light of this truth, what, then, is the meaning of 'fighting against circumstances'? It means that a man is continually revolting against an effect without, while all the time he is nourishing and preserving its cause in his heart. His wishes and prayers are only gratified and answered when they harmonise with his thoughts and actions. Not what he wishes and prays for does a man get, but what he justly earns. Only himself manacles man: thought and action are the gaolers of fate - they imprison, being base they are also the angels of freedom - they liberate, being noble. The 'divinity that shapes our ends' is in ourselves it is our very self. Their whims, fancies and ambitions are thwarted at every step, but their inmost thoughts and desires are fed with their own food, be it foul or clean. Men do not attract that which they want, but that which they are. ![]()
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