American debt crisis triggered again

June 2, the global rating agency Moody's Investment Authority services company, "warned that if U.S. debate politicians, in improving the national debt limit is in agreement, the U.S. Government could be facing the risk of debt default, the agency may consider reducing U.S. credit rating. Reduce the level of credit of the United States will ask borrowers to pay debts to increase interest rates, making these loans more expensive. "Moody's investment services company," he said, the U.S. debt and spending of political struggle has "exceeded expectations". The existing U.S. law to restrict government debt limit by about $ 14.3 billion, but the U.S. debt limit has been reached. Unless Congress voted through the improvement of the national debt ceiling, otherwise the Treasury may extend bonds to raise funds for spending. Moody also warned that if the government can not take a long-term fiscal deficit reduction, the rating also decline. The federal budget deficit is the third consecutive year of over $ 1 trillion of growth. This is not the first time that the rating agencies the authority issued a similar warning from the United States. April another major credit rating agency Standard & Poor's has issued a similar warning, and a reduction in the U.S. for the first time the government's fiscal health "stable" drop by "negative." Treasury Bonds plays his May 16 $ 14300000000000 borrowing limits. If the credit score is lower, will harm the U.S. economy and consumers terminal. Because many of the loans, including mortgages, often we can change yields on Treasury bonds in accordance with, so to cut credit risk can lead to rising interest rates. The Republicans won the House bill to improve the performance of the national debt limit May 31, the United States Congress defeated their Republican senator house party put on the total increase of $ 2,400,000,000,000 Treasury bill, the political purpose is government to increase the lending capacity to fight at the same time to reduce expenses. The vote seemed unilateral situation: 97 votes, 318 votes against. Home Democrats accused Republican political propaganda, and the Obama administration avoid standing anywhere, not that most of the wrath of the Republic. This week, Obama met privately with legislators from the Democratic and Republican parties, but not to discuss the matter to progress. This discussion day is short, intense shall compare the accidental and the government and the key to deficit reduction in private negotiations. Republican House appropriations committee chairman, said Kemp, the bill must be dismissed. And he was involved in drafting the bill. He said I won the national debt unconditionally improving the roof is a success because it sends clear signals that says Congress has finally realized immediately began to control deficit spending in the United States. However, the accused Republican Rep. levine trick playing with strange, because last week Wall Street petition do not put it so seriously, says it will not affect economic recovery. He and other Democrats accuse Republicans of trying to divert attention from the issue is federal health insurance (Medicare) and the elderly to buy private insurance plans. Remote voting Minister of Finance to cover the debt ceiling must Turner said the term and improve for two months. August 2 If Congress takes no action. The Government to pay its debt, has caused the risk of recession again. Sen. Obama with the government issued an ultimatum According to U.S. media, Republican House Speaker Boehner issued a statement saying, many economists 150 of the letter urging Congress to increase the national debt limit to be with substantial cuts in touch with the expense. The reason is that the national debt limit associated spending cuts will damage increase if different private economy, creating jobs. Analysis of June 2, CNN (CNN), published says, on the declaration seems to be the Obama administration proposes the ultimatum. Its base looks more politicized, not economic reasons. Any economist that if Congress does not act, American record debt affect employment and economic growth. But, and that the above statement is quite different: it says that if the associated spending cuts increase debt limit different, job creation is going to hurt.

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