Biden sign bill for fast-track to increase debt limit

Washington, December 11, 2011 : .

The US President Joe Biden signed a bill that will accelerate the process of raising the debt limit for the Federal Government and avoiding a default.

"The nations full faith and credit has always been a shared responsibility.The bipartisan support of this legislation shows that it is still possible for leaders to work across the aisle and deliver," Biden said on the Twitter.

The bill, which was approved by both chambers of the Congress earlier this week, will set up a process for Democrats to raise the debt limit in a second bill by a simple majority vote, Xinhua news agency reported.The final votes for the second debt limit bill will be cast next week.

According to local media, the new legislation may cover Washingtons borrowing up until the midterm elections in 2022.The US Treasury Department currently has no room to borrow under its standard operating procedures after it has reached the debt limit of $28.9 trillion.US Treasury Secretary Janet Yellen has urged Congress to raise the debt limit before December 15."I cannot overstate how critical it is that Congress address this issue.America must pay its bills on time and in full.

If we do not, we will eviscerate our current recovery," Yellen told lawmakers last week.According to the Washington DC-based Bipartisan Policy Centre, failure to pay the countrys bills in time can have immediate ripple effects on the world economy.

This is especially true during times of economic recovery, and increased uncertainty about a new Covid-19 version.The debt limit, commonly called the debt ceiling, is the total amount of money that the US government is authorised to borrow to meet its existing legal obligations, including social security and medicare benefits, interest on the national debt, and other payments.int/shs #Biden #track #debt #limit #Joe Biden #Washington #Washington #America #Congress #Covid-19.