Washington – The US Congress approved to raise the nation’s debt limit temporarily. As a result, the limit has been raised from $28.4 trillion to $30 trillion. This has averted the possible crisis of a ‘partial shutdown’ in the United States. But the Biden administration will only get relief until December as the Biden administration will have to make provision for the necessary expenses again after that.
The financial provision announced by President Joe Biden to fund the US administrative systems was falling short because this financial provision was much higher than the revenue of the United States. To bridge the gap, the Biden administration had demanded a temporary increase in the debt ceiling.
According to the US Treasury Department, the debt ceiling has reached $28.40 trillion. It has grown by $20 trillion in the last 15 years. In this scenario, the leaders of the opposition Republican party strongly criticized the Biden administration for making a demand for increasing the debt ceiling by $2 trillion.
However, some US analysts have warned that the US could face a “partial shutdown” if the debt ceiling were not increased. To avert this crisis, President Biden’s political and administrative circles proposed to issue a Trillion Dollar Platinum Coin. According to various reports, if Congress does not pass a bill regarding the debt ceiling, ‘Trillion-Dollar Platinum Coin’ could be deposited with the US Central Bank to raise funds.
But some Republican leaders have expressed concerns that this decision could lead to higher inflation in the United States. International analysts have warned that inflation is already hitting the US population and a Trillion Dollar Platinum Coin could flare up the inflation further. With all of this in mind, the US Senate approved an increase in the debt ceiling on Thursday, with a 50-48 vote. This will come as a temporary relief for the Biden administration. But the rise in debt limits will not end the Biden administration’s woes, say the international analysts.
After eight weeks, the Biden administration will have to make fresh financial provisions to implement its schemes and policies. Some analysts have warned that the Biden administration will not receive support if forced to appeal for a new increase in the debt ceiling.
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