The USA is facing a default. Such a prediction was made in the Congress by Minister of Finance Timothy Geithner. According to his words, legislators should raise the limit of acceptable national dept as soon as possible.
“The default in the United States is inconceivable. Today this opinion is shared by all Ministers of Finance in the USA irrespective of whether they belong to the Democratic or Republican Parties”, - The Washington Post quotes Geithner’s words.
According to the assessment made by the Treasury Department, the American national debt will reach $14,294 trillion by May, 16th. It is a limit determined by the law. If it is raised, the USA will have to abandon paying a number of payments including military salaries and medical insurance. The Treasury Department can take emergency measures which would delay the default for eight weeks, but then it will be fatal.
Earlier the Congress supported the president administration’s request to raise the limit of the national debt. However, members of the opposition Republican Party now are actively deprecate the Barack Obama’s policy and require radical costs reduction. As the members of the Democratic Party have lost the majority votes in the House of Representatives, the White House faces difficulties conducting laws through it.
Geithner has noticed that all measures concerning costs reduction will not have an immediate effect, and the default threatens USA right now. According to his words, the Congress should support the Treasury Department’s request; otherwise America will fall in a new crisis which will be much worse than economic turmoil in 2008.
