Approved borrowing limit Senate Eyes

Approved borrowing limit
Senate Eyes

U.S. Congress House of Representatives, the United States just hours before the deadline to meet, to raise the borrowing limit, the day before the agreement reached between the leaders of the White House and Congress then approved the draft law envisaging the rise of the limit.

Voting in the House of Representatives adopted the law, if the Senate accepts the U.S. President Barack Obama will be presented for signature. Decrease the risk of defaults in the U.S. entry into force of the law, the deadline for increasing the limit will be eliminated on the last day.

Parties agreed on the plan foresees a reduction of $ 2.1 trillion in spending the next 10 years.

Amounting to 14.3 trillion dollars in the U.S. administration in Washington for a long time to increase the borrowing ceiling, and the U.S. defaulted on the trip over the race against time to reach agreement on the final financial markets continued to ease.

Raising the U.S. debt ceiling and the country's political stalemate on how to reduce the budget deficit''AAA''credit rating of the long-term revealed that the risk of losing.

BORROWING LIMIT
The U.S. administration, the salaries of soldiers, including medical expenses and bills to pay credit interest rates on the amount of total debt is facing a legal constraint.

U.S. debt ceiling before the deal was $ 14.3 trillion and the ceiling was achieved in May. Is only with the approval of Congress for authority to increase the debt ceiling more borçlanamıyordu Obama administration.

U.S. debt ceiling, the First World War, to simplify the government's financial needs are met for the first time in 1917, was performed. Since then, the debt ceiling raised dozens of times.

Congress also determines the authority of the government's spending commitments and tax increase.Obama is spending more than you win in this administration, and at the same time makes it impossible borrowing.

Financial crisis and the fragile U.S. economic conditions led to an increase in government spending, tax revenues did not meet expectations. This led to the growth of the budget deficit by increasing the government's borrowing rate.

The Republicans who control the lower chamber of Congress, the House of Representatives, saying they wanted to take control of the budget deficit, borrowing, in the absence of a deal were in the ceiling threatened to artırmayacakları.

Democrats plan to increase the borrowing ceiling of $ 2.7 trillion and 2.2 trillion dollar budget deficit reduction envisaged.

Republicans in the two-stage plan to reduce government spending 915 billion dollars, the government envisages to increase the borrowing authority is only 6 months.

Parties to a final agreement by tomorrow expiry of a period in U.S. history artırılmaması varamayıpta debt ceiling will fall and this is the first time in default in both the U.S. economy would lead to undesirable results in terms of both the global economy.

U.S. credit rating from international credit rating agencies will reduce the value of U.S. Treasury securities will fall in the hands of international organizations and foreign creditors is going to have their money in U.S. banks in the U.S. credit cards, vehicle loans and housing loans to go down in interest rates will rise rapidly.