11th hour deal to extend the debt ceiling and fund the U.S. government

At the 11th hour on October 16, 2013, the U.S. Congress adopted and the President signed a Resolution ending the government shut down since the begging of October and temporarily extending the U.S. debt ceiling. The compromised deal will extend the funding for the government until January 15, 2014 allowing budget negotiators of the Senate and the House to work on a budget. It will also extend the borrowing power of the U.S. government to pay its bills until February 7, 2014 averting a debt payment default on October 17, 2013.

The last minute compromise averted a fiscal disaster that affects not only the U.S. but also the entire world. The Chinese and Japanese governments are warning the U.S. government to get its fiscal policies in order. The Chinese are more specifically questioning the viability of the U.S. dollar as the world’s preferred currency in light of the whole ordeal.

Domestically the whole ordeal creates political headaches for the President, Republicans and the Democrats. It appears that the public anger is aimed more towards the House Republicans than any other. Political fallout could continue until the next year’s Congressional elections making some current members more vulnerable to voter revolt.

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elegant on October 21st 2013 in Finance

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