“Day X” may come within a few weeks, since the national debt ceiling was reached by the country back in October.
In the near future, the United States may declare a default in the event that Congress once again does not raise the government debt ceiling. About this with reference to the Bipartisan Politics Center (BPC) informs Reuters agency.
According to analysts, “Day X” will occur in the period from December 21, 2021 to January 28, 2022. During this period of time, the United States may face a situation where it will be impossible to fulfill all its debt obligations.
Before that, the American congressmen decided to extend the financing of the government until February 18, thus avoiding the suspension of its work. However, legislators have not yet considered the issue of raising the public debt ceiling. At the same time, Congress may go on Christmas holidays without solving this problem, but experts stressed that “flirting with a financial catastrophe” is not worth it.
Democrats and Republicans, meanwhile, are “at an early stage” discussing the threat of default and have not yet reached an agreement on this matter, the agency writes.
We will remind, earlier the Secretary of the Treasury of the United States Janet Yellen said that the state could face default by October 18, if the representatives of the Republican and Democratic parties do not agree on the next raising of the public debt ceiling.
In response, Republicans said they did not intend to help opponents increase the limit, as this would allow the Biden administration to spend funds on programs that they do not support. This problem was resolved on October 13 – the parties agreed to increase the public debt ceiling by $ 480 billion to $ 28.9 trillion. However, this limit was reached by the States in the same month.