The US is again nervous, failing to pay debts that are hundreds of thousands of trillions

Jakarta, CNBC Indonesia – President of the United States of America (USA) Joe Biden is now having an erection. The reason is that the government is waiting for a decision on whether Congress will pass a draft law (RUU) to fund the government and postpone the rules on state loan restrictions until the end of 2022.

Funding for the federal government will run out this October 1, if parliament does not act. The US Treasury previously warned that if Congress does not raise or lift the country’s borrowing limit, the government will likely run out of money to pay bills by mid-October.

Not just make shutdown federal government, this will also result in default. “This is just a reminder,” White House Press Secretary Jen Psaki told reporters Reuters, Friday (24/9/2021).

In fact, the US House of Representatives has already approved the bill. The September 22 vote approved Biden’s request by 220:221 votes.

However, this will be discussed again in the US Senate, given the concept of a two-chamber US legislature. The Republican leader in the Senate, Biden’s opposition Democrats keep repeating nothing will change.

“I want to reiterate once again: America cannot fail. We never have and never will,” said Republican Party Leader Mitch McConnell.

Based on data from Statista, as of last August, the US debt value actually reached US$ 28.427 trillion. This is almost the same as the previous month, but down considerably from June’s US$ 28.529 trillion.

However, if you look at the data from US Debt Clock, who sees the position real time US debt currently reaches US$ 28.781 trillion or Rp 40,129 trillion. When compared to gross domestic product (GDP), the debt is 125% of the GDP of the Superpower.

The Senate itself is scheduled to hold a hearing next week. Currently, the US debt limit is stuck at US$ 28.4 trillion.

Previously, the issue of increasing the debt ceiling occurred in the era of the 45th US President, Donald Trump. At that time the government experienced shutdown for 35 days in the period December 2018 to January 2019.

Shutdown It was the longest in US history. As many as 300,000 government employees were laid off.

In addition, GDP has also been cut. based on the Congressional Budget Office analysis, as quoted CNBC International, In the fourth quarter of 2018, GDP was cut by 0.1%, while in the first quarter of 2019 it was 0.2%.

At that time, the US economy was still good, while currently still in the recovery phase from the coronavirus disease (Covid-19) pandemic. Therefore the impact could be even greater.

[Gambas:Video CNBC]

(boss / boss)


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