- Debt

Republicans and Democrats remain stuck within five days of the suspension of payments

Washington, (Efe / Raquel Godos) .- Negotiations between Republicans and Democrats to reach an agreement to end the partial suspension of the Administration and raise the ceiling of US debt remain blocked today despite new proposals offered from one and another side.

Five days after the United States could incur suspension of payments, the Senate Republicans today blocked a Democratic proposal to extend the country’s debt limit until after the legislative elections that will take place in November 2014, while the House Blanca refuses to accept the Republican option of raising the roof for only six weeks.

The Democrats, starting with President Barack Obama himself, and including Senate Majority Leader Harry Reid, refused to subordinate budget negotiations to the reopening of the government or the extension of the federal debt limit.

Although in recent days there have been rapprochements between both parties, the Speaker of the House of Representatives, Republican John Boehner, today told his colleagues in a closed-door meeting that there is no agreement with the White House.

On Thursday afternoon, Boehner, along with the leader of the Republican majority in the House, Eric Cantor and the Republican legislator by California Kevin McCarthy, presented a framework to Obama on which to establish the budgetary negotiations that gathered the reopening and avoided the suspension of payments for a short period of time.

The US president today considered “a positive fact” that the Republicans of the House of Representatives agree on the need to avoid suspension of payments, but urged them again to end as soon as possible with the suspension of the Administration, which began on October 1.

In his Saturday radio address, Obama said that once the partial closure of the government and raised the debt ceiling, his administration can reach many other agreements with the Republicans of Congress to move forward.

“We have created seven and a half million new jobs in the last three and a half years, now we are going to create more, we have reduced our deficit by half in the last four years, now we are going to do it in a more intelligent, balanced way. , that allows us to give ourselves the luxury of investing in the things we need to grow, “insisted the president.

“The truth is that there is a lot we can agree on, but one thing we have to agree on is that there is no good reason for anyone to continue suffering from this closure,” he said.

The White House spokesman, Jay Carney, described as “regrettable” that the Senate did not reach an agreement to pass the bill on increasing the debt ceiling in a statement insisting that Congress “must Do your job “and raise the limit. “This bill would have removed the threat of suspension of payments from the table, and given the business and the economy of our nation the certainty we need,” said Carney in relation to the Democratic proposal taken to the upper house today and blocked by the Republicans. “With five days until the government runs out of loan authorization, Congress must move forward with a solution that reopens the government and allows us to pay our bills so we can move forward with negotiations to reach a broader agreement on the budget, “he added. Meanwhile, US Treasury Secretary Jack Lew warned today that his country is the “anchor of the global financial system” and the place where investors go when global risk increases and insisted that it can not be put at stake that reputation for a possible suspension of payments.

“The US is the anchor of the international financial system,” Lew said in his message to the International Monetary and Financial Committee (IMFC), the main executive body of the International Monetary Fund (IMF).

In this regard, the IMF and the committee members, meeting this week in Washington for their autumn meetings, today called on the United States to end its short-term uncertainties in its final communiqué.

The final text reminds the country “the urgent need to take measures to put an end to short-term fiscal uncertainties”, due to the budgetary disagreement that has led to the partial closure of the Public Administration.

World Bank: We are five days away from a very dangerous moment

World Bank: We are five days away from a very dangerous moment


The president of the World Bank, Jim Yong Kim, warned today that we are five days away from a “very dangerous moment” for the world and urged the United States to act and increase the ceiling of the debt to avoid a suspension of payments in the country.

“The closer we get to the deadline, the greater the impact on developing countries,” Kim warned in a statement at the close of the joint meeting of the International Monetary Fund (IMF) and the World Bank (WB) today in Washington.

“It could be a disastrous event for the developing world and that, in turn, would seriously damage advanced economies as well,” Kim said in reference to the moratorium that would take place if the United States does not expand the cap of the federal debt of 16.7 billion of dollars that are expected to be reached on October 17.