11:22 GMT30 November 2020
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    US Would Face Economic Disaster Without Raising Debt Ceiling - Expert

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    The US would face imminent economic disaster in case if the US national debt limit wasn’t raised from 18 trillion dollars to 20 trillion in the recently adopted two-year budget deal, the head of a nonpartisan foundation told Radio Sputnik.

    The main goal of the new budget is that it extends the debt ceiling for the US, Lindsay Koshgarian, research director at the nonpartisan National Priorities Project, claimed.

    “If debt ceiling cannot be raised or suspended it would have caused havoc in the US economy. It could have cost us jobs, our credit rating in the world. It’s very important that we’re able to suspend the debt or raise the ceiling and economic disaster,” she explained. “It avoids what could have been an economic disaster.”

    The vast majority of congressional officials aren’t actually interested in putting an end to those practices, treating them as “not a big problem.” And there is only a small party in Washington that stands for finding a way out of this vicious circle of extending the debt limit, she added.

    Recently, the US has raised the debt ceiling eleven times and it apparently will keep that stance until there is no money left in the social security funds.
    “[A]s long as it doesn’t get out of control, the US will keep pushing the bar year after a year,” she pointed out.

    According to Koshgarian, Obama’s approval of the budget plan has an ultimate objective of handing the unsolved problems down to the next country president, who will come into the office in 2016.

    What is more is that US citizens remain indifferent to what is going on with federal budget, turning a blind eye on plans to increase defense and non-defense expenses by 80 billion dollars in the period between 2016 and 2017.

    Koshgarian concluded by saying that while the budget prevented a sudden economic collapse and helped authorities to maintain paying off social benefits for now, in a longer perspective the problem will remain unsolved.


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    debt crisis, US economy, debt, budget, finance, dollar, US budget, US
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