Congress stuck between rock and hard place on raising debt limit

Source: Reuters

“Democrats and Republicans will start what could become a monumental game of chicken this month over raising the limit on U.S. government borrowing, as Congress attempts to avert an historic debt default. Leaders of the Democratic-led Senate and House of Representatives are expected to force votes to lift the $28.4 trillion debt limit in late September. The limit was technically breached on July 31 but is being circumvented by Treasury Department ‘extraordinary’ steps. Failure could lead to a potentially catastrophic default on debt repayment obligations or a temporary shutdown of some federal operations. A default would be unprecedented, but shutdowns have taken place three times in the past decade.” (09/07/21)