Direct threat of imminent default has been postponed. Questions are still remain…
Yesterday on Wednesday, politicians in Congress nevertheless have come to an agreement on the resumption of government funding, which was partially stopped for more than two weeks. The Congressmen also came to the consensus about the increase of the U.S. debt ceiling. These agreements do not solve the fundamental facing tasks to lawmakers and political parties, they help to postpone the decision of the same issues at later date.
Thus, the financial collapse that threatened to the world’s biggest economy, while postponed in time.
After many days of wrangling and debate, the long-awaited draft law was agreed upon and adopted by the Senate and House of Representatives. And very soon was signed by President Barack Obama. Guidance the White House says that several hundred thousand employees of the federal government, who have been forcibly sent on vacation can be called to work on Thursday. The agreement which was concluded on the last day does not provide solutions major deficits and expenditures which are deep dividing line between politicians of the Republican Party and the Democrats. In fact, adopted law extends the financing of the government only until 15 January 2014. And similarly, the level of government debt pushed back to February 7, 2014. And that means that the United States may encounter with the same crisis in the first month of the following year. Political deadlock was resolved in less than a day before, when the Ministry of Finance was obliged to issue a statement that the exhaustion of all limits on new borrowing. After the signing of the law, U.S. stock prices rose to near historic highs. The Asian stock market also greeted the news positively.
“We can dispel the cloud of uncertainty hanging over our businesses and citizens.” said The President of USA Obama In his speech after the draft law was passed at the White House last night.