The President of the United States Donald trump agreed to a temporary increase in the debt ceiling until December 15. He went on the move on the condition that the parliamentarians at the same time will adopt a package of Federal financial assistance to the victims of hurricane “Harvey”. On Wednesday, September 6.
The President had a meeting with representatives of Congress to discuss the issue of public debt and assistance to victims. Following the discussion, the leaders of the Democrats in the Senate and house of representatives Chuck Schumer and Nancy Pelosi have issued a statement in which he said that “the President and congressional leaders have agreed to approve aid for victims of the hurricane “Harvey”, to raise the debt ceiling and to resolve these issues before December 15″.
- China again became a major holder of U.S. debt
The statement also said that both the President and the congressmen will try to avoid a default in December.
We will remind, on September 2, the international Agency S&P warned that without a debt ceiling increase, the United States can face negative consequences comparable to the effects of the Lehman Brothers bankruptcy (it has become one of the causes of the global financial crisis of 2008). In October 2017 us Treasury should direct 81 billion dollars in the trust Fund of veterans of military service. If trump didn’t go on raising the debt ceiling, the US would have to declare technical default.