USA Enter A Key Week For A Deal To Shun A New Crisis

Posted On 09 Dec 2013
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Tag: budget agreement, federal government, fiscal plan

Can it happen resealing of government?

WASHINGTON -. U.S. Congress has from Monday just five days ahead to outline a long-term budget agreement that will avoid a new closure in 2014 of the Federal Government and another battle over the debt.

The agreement in Congress that ended the partial shutdown of the federal Administration for lack of funds for 16 days last October established the creation of a bicameral, bipartisan committee should submit an agreed budget plan before December 13.


Presenting a fiscal plan at that time certainly reduce the chances that the Administration again closed from January 15, when they will return to run the funds to finance it, and that in February there again another battle for the increase the debt ceiling threatening to default.

Negotiations for bipartisan budget plan that are headed by Republican Rep. Paul Ryan, who ran for vice president last year, and Sen. Patty Murray.

“We are making progress,” Ryan explained to reporters last week.

U.S. troops on alert for cuts

The Ryan plan and evaluating Murray seeks fundamentally alleviate spending cuts in some government programs, especially in the defense sector until 2015 and find new revenue streams that do not involve a tax increase.

The Defense Department, for example, face cuts of $ 52,000 million as of January if a deal is not reached.

The Secretary of Defense Chuck Hagel visited this weekend to U.S. troops in Afghanistan and heard firsthand their concerns to those cuts.

The world economy is expected to reach an agreement

Another recent report by consultancy Macroeconomic Advisers estimates that the “crisis” tax that have been the norm in the country since 2010, when Republicans became the majority in the House of Representatives have subtracted 1% to the rate of growth in the last three years.

In addition, the firm maintains that the unemployment rate, currently at 7% and one of the biggest drags on economic recovery, would be around 6% in the absence of political confrontation.

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