Tuesday, August 2, 2011

U.S. debt, okay the agreement of the House of representatives, now the final vote of the Senate

It came the OK from the House of representatives to compromise on increasing the ceiling of U.S. debt (related to heavy cuts to the state budget), should plan to avoid default and its heavy economic impact. Because the agreement - which was announced last night by Barack Obama - to become law, it lacks the Senate vote.

The plan was approved - after a session lasting 11 hours the river - with 269 votes to 161, with a large squad of opponents both Democrats and Republicans who are separated by an indication of the parties to vote yes. The final vote should come by today to avoid technical default of Washington: the U.S. by law it can not spend more than a certain value set by the law and the Treasury said that the roof will be reached today. Without a vote then, right from tomorrow, the U.S. would be unable to pay pensions and salaries, pay off debt or issue new bonds. With disastrous consequences for the entire global economy.

The plan envisages an increase in the debt ceiling of at least 2.1 trillion dollars, coupled with spending cuts of equal value. The measures will be implemented in stages and the areas to which funds will be reduced by a bicameral committee will be decided by November. The agreement (if it is approved) does not avoid the risk of a downgrade, the lowering of the assessment, the U.S. public debt by the rating agencies: the amount of the measure is well below the 4,000 billion U.S. dollars identified by Standard & Poor's to maintain the AAA rating (the best). And the extent of the impact on the economy, already fragile, worried. "The agreement is good for the economy, avoid further damage," said Treasury Secretary Timothy Geithner.

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