The US Senate and House of Representatives prepared to vote Monday on a White House-backed deal to raise the $14.3 trillion debt ceiling, just one day before a deadline for avoiding an unprecedented US default.
The US Senate and the House of Representatives prepared to vote Monday on a White House-backed deal to raise the $14.3 trillion debt ceiling after months of intense wrangling and just a day before the August 2 deadline for avoiding an unprecedented US default.
President Barack Obama announced a deal with congressional leaders late on Sunday that would allow the US to raise its borrowing limit, thereby avoiding a default that would have had devastating consequences for the country’s economy and a ripple effect on global markets.
PIMCO CEO NOT IMPRESSED
but one that is tainted with frustration over a deal that pleases nobody. “No one is coming across as a winner of this drawn-out political affair,” he said. “This has been a hugely damaging episode for the government and the US political system as a whole.”
Major holders of US debt
plan as a short-term solution. CEO Mohamed El-Erian told ABC News: “This relief will be short. (…) It will not remove the threat of a downgrade, it does nothing to restore household or corporate confidence, so unemployment will be higher than it would have been otherwise, growth will be lower, and inequality worse.”
FOLLOW THE US DEBT IN REAL TIME
Date created : 2011-08-01