The U.S. Congress Could Leave The Government With No Funds If There Is No Agreement

Posted On 11 Feb 2014
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Tag: financial obligations, fiscal crisis U.S. government, U.S. congress running out of funds the government

The United States Congress is pending the decision on the increase of the public debt limit, and the government is within days of running out of funds to meet its financial obligations.


Republicans in the House of Representatives returned to the Capital on Monday and apparently there is a consensus among them that the best option is to put aside the confrontation that took place on this subject in the recent past.

The time remaining leaves no room for improvisation or errors, and some party leaders advocate a solution that will raise public debit above the 17.2 billion dollars, up to a period which exceeds the midterm elections next November, Today notes the Washington Post.

However, this proposal will require strong support from Democrats because about 30 members of the opposing party red at all costs to allow this increase.

According to Prensa Latina stated on its website, the timetable for the next few days is an element that hampers the negotiations, it is projected that the House of Representatives closes its session Wednesday for Democrats attending their annual retreat, and then close the Capital its doors on the occasion of the celebrations for President’s Day.

Treasury Secretary, Jack Lew, announced in a letter Friday to leaders of the Legislature that the current capabilities of executive pay will mature on February 27, so that members of Congress must reach an agreement before that date or load on shoulder the consequences.

A fiscal crisis of major proportions

Lew said that this year there is less room for maneuver than in 2013, when similar extraordinary measures gave the government five months to keep running with the previous limit of 16.7 billion.

“If the Treasury does not have enough cash on hand for the first time in history that the country will be impossible to pay all its obligations” and a delinquent payments would shake the markets, the official said, adding that there is little time because the Congress will be in recess during part of the next three weeks.

This means that unless Republicans reach an agreement in the last days of February there will be a countdown before a fiscal crisis of major proportions, with negative implications that this would occur, says the Post.

Meanwhile, President Barack Obama maintains its position not to accept any conditions in exchange for what he considered a simple duty of Congress to ensure that the government can meet its financial obligations, the newspaper said.

The Republican turn towards compromise indicates a break with previous tactics used in the tax negotiations, particularly for those who took the initiative and led to a partial shutdown of several federal agencies last October for 16 days.

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