Saudi Press

Saudi Arabia and the world
Wednesday, Jul 24, 2024

US Avoids Default on Debt as Negotiations with Republicans Progress

US Avoids Default on Debt as Negotiations with Republicans Progress

The US will avoid a default on its debt, according to President Joe Biden, who stated that negotiations with Republican Speaker Kevin McCarthy have been "productive".
The House of Representatives went on a 10-day break without a deal to raise the borrowing limit, but negotiators are said to be closing the gap on their differences.

House Republicans are demanding cuts of up to $130 billion, while Democrats reject the proposed cuts.

Economists have warned of economic catastrophe if the government defaults, and top military brass added their own dire prognosis.

The US government is facing a potential default if it is unable to cover loan repayments.

The Treasury Department is concerned about the potential default and has warned that it could halt Social Security payments scheduled for June 2.

A federal judge in Boston has set a hearing for a lawsuit filed by unionists who argue that the 14th Amendment requires the President to borrow funds to pay US obligations, regardless of what Congress does.

The US has only one other democracy with a formal debt ceiling, Denmark, which manages it without the political high drama that periodically grips Washington.

Raising the cap simply enables the government to make repayments on loans that have already been approved and carried out, and has no implications for future spending.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
World's Hottest Day Recorded on July 21
Sri Lanka Apologizes for Forced Cremation of Muslim Covid Victims
President Biden Returns to White House After Testing COVID Negative
Trump Says Kamala Harris Would Be Easier Election Opponent Than Biden
4.7 Magnitude Earthquake Strikes Northwestern Turkey
Hacking Vulnerabilities: Androids vs. iPhones
Israel Conducts First Direct Air Raid on Yemen's Hodeidah Port
Joe Biden Withdraws from 2024 US Presidential Race
A Week of Turmoil: Key Moments in US Politics
Elon Musk's Companies Drop CrowdStrike After Global Windows 10 Outage
US Criticizes International Court's Opinion on Israeli Occupation
Netanyahu Denounces World Court Ruling on Israeli Occupation
Adidas Drops Bella Hadid Over Controversy
Massive Flight Cancellations Across the U.S. Due to Microsoft Outage
Russia Accuses Ukraine of Using Chemical Weapons
Ursula von der Leyen Wins Second Term as European Commission President
Japan to Allocate $3.3 Billion to Ukraine Using Frozen Russian Assets
Google and Microsoft Now Consume More Power Than Several Large Countries
Increased Security for Trump After Assassination Threat
New AI Chipset Set to Revolutionize ChatGPT
Thai-Saudi Investment Roadshow Yields 100 Partnerships
Trump Media Shares Surge Following Re-Election Bid Boost
Russia's Electronic Warfare Neutralizes Western Weapons in Ukraine
Trump Challenges Biden to Debate and Golf Match
Macron Accuses Israeli Minister of Election Interference
US Senator Highlights Weaknesses in Western Military Industry During Ukraine Conflict
George Clooney Urges Biden to Withdraw from Presidential Race
Political Shift in the UK: A Detailed Analysis of Labour's Victory and Future Prospects
Viktor Orbán's Peace Mission: A Diplomatic Controversy in the EU
UAE Court Sentences 43 to Life Imprisonment Over Terrorist Links
Spain PM Pedro Sanchez Denounces Double Standards on Gaza at NATO Summit
Biden Affirms Commitment To Presidential Race
Putin Hosts PM Modi for a Private Meeting
2024 Predicted to Be World's Hottest Year
Iran's President-Elect Masoud Pezeshkian Reiterates Support for Hezbollah
Biden Insists on Continuing Presidential Race Amid Criticism
Macron Faces New Political Challenges Despite Election Relief
US Officials Resign Over Biden's Gaza Policy
Campaigners Push for Emergency Uplift Visa for Palestinians Escaping Gaza Conflict
Netanyahu Criticizes Release of Gaza Hospital Head
UK Government and British Airways Sued Over 1990 Kuwait Hostage Incident
Afghan Women's Rights Declared Internal Issue by Taliban
UK Appeals to ICC May Delay Arrest Warrants for Israeli Leaders
ZATCA Allows Non-citizens to Participate in Auctions
UK Investors Encouraged to Enter Saudi Sports Market
Saudi Arabia's Remarkable Position for Sustained Economic Growth
Iran's Presidential Election: A Close Race
Iran Threatens Retaliation if Israel Attacks Lebanon
EU Enforces Sanctions on Hamas Financiers
Turkey Removed from Financial Watchdog's Grey List
×