Rus News Journal

The House of Representatives of the USA has voted for increase in a limit of a state debt

the House of Representatives of the congress of the USA, under control to Republican Party, has approved the plan of increase of a limit of a state debt and reduction of deficiency of the federal budget, co-ordinated during week-end the White house and leaders of both parties in the congress.
in favour of the bill 269 voices are submitted. It is remarkable that, despite statements of head of democrats in House of Representatives Nensi Pelosi, 161 congressman has voted against, basically Barack Obama`s party fellows.
now the document goes on final voting to the senate where democrats have the majority. The leader of the democratic majority in senate Gerri Read already declared that voting in the senate will take place at 12:00 on time of Washington on August, 2nd, that is at 20:00 Moscow time. For bill approval 60 voices from 100 are required.
the Bill of lifting of a lath of a state debt and reduction of the state expenses, supported by US president Barack Obama and leaders of the congress, will allow to reduce deficiency of the federal budget a minimum on 2,1 trln dollars within 10 years. Thus the first stage of reductions (on 917 mlrd dollars) Will concern so-called discretionary expenses, that is those budgetary expenditure which are subject to annual approval of the congress. The basic part of these expenses is made by a defence cost and safety.
at the second stage the special two-party committee of the congress should define how achieve additional reductions of budgetary deficiency on 1,5 trln dollars Thus government programs of social and medical maintenance can to suffer, such as Medicare and Medicaid (members of Republican Party insist on reduction of these programs), however is not excluded that in interests of treasury the Tax code as that is wanted by B.Obama and democrats will be reformed.
if spetskomitet forthcoming months will not manage to agree about how to reduce budgetary deficiency for 1,5 trln dollars to 2021. (In addition to initial economy 917 mlrd dollars) Or the congress of the USA will not support the recommendation of this committee the special mechanism of automatic reduction of expenses on 1,2 trln dollars It will be activated will allow to reach the minimum purpose on reduction of budgetary deficiency on 2,1 trln dollars for 10 years.
simultaneously the bill provides three rounds of increase of a limit of state loans so as a whole the state debt lath will be lifted on 2,1 - 2,4 trln dollars In an ideal the state debt limit will be raised on 2,4 trln dollars that will allow B.Obama`s administration not to come back to this question to the following presidential election in the end 2012., and budgetary deficiency will be reduced to the same sum within 10 years.
we will remind, the congress of the USA should raise till August, 2nd a state debt lath, a component now 14,3 trln dollars that the United States could avoid a default under the promissory notes. The admissible limit of loans has been settled by the Treasury Department of the US in May of this year Established by the Ministry of Finance of the USA a deadline - 8:00 Moscow time on August, 3rd.
however even if the USA can avoid a technical default (so, most likely, and will occur), the country is threatened with the fall of its credit rating which always was on the higher mark AAA first in the history. All three international rating agencies - Fitch, Moody`s and S &P - have warned that can lower a rating of the USA if the White house and the congress does not reach the long-term agreement on reduction of budgetary deficiency. However S &P has gone further away and has laid down to the American politicians a condition - to agree about reduction of budgetary deficiency a minimum on 4 trln dollars, to confirm the state rating at level AAA.