US House plan on debt crumbles

US House plan on debt crumbles

The fiscal fate of the US government turned one shade gloomier after House Republicans dropped their latest proposal to end the government shutdown, raise the US debt limit and avoid the country's first-ever default, dpa reported.

Republican leaders by late Tuesday apparently failed to gather enough support in their own ranks to back the proposal, and the powerful rules committee postponed the meeting on the bill, according to media reports.

The US government teeters on the precipice of a historic default that could come as early as Thursday, when it expects to run out of "extraordinary measures" to extend the 16.7-trillion-dollar debt limit.

The uncertainty over the way forward prompted a Wall Street ratings agency, Fitch Ratings, to warn that the country's AAA credit was at risk.

The Senate, where Republicans and Democrats appeared to be nearer agreement, resumed talks late Tuesday on a solution after suspending them so the House could consider its own bill.

It was unclear whether both houses of Congress could agree on a bill in time for signature by US President Barack Obama by late Wednesday.

"I'm hopeful that it can be worked out," Democratic Senator Joe Manchin told CNN. "There's no way conscionable that we can default. It would hurt not just this economy but economies over the world."

Manchin is a member of a 14-Senator bipartisan group that has been hammering out a compromise. The collapsed measure in the lower chamber would have kept the government running through December 15, one month earlier than expected in legislation being negotiated in the Senate, according to a spokesman for House Speaker John Boehner. The proposal would have revoked health care subsidies for members of Congress and their staffs. Obama and Democrats in Congress have vowed to reject any provision eroding the 2010 Obamacare health insurance reforms.

The tea party faction within Boehner's Republican majority has demanded measures to slow or weaken Obamacare.

Fitch Ratings said it believes the US debt ceiling "will be raised soon" but warned that "political brinkmanship" could raise the risk of default in the United States.

Minutes after Fitch issued a negative watch on its AAA rating for US sovereign debt, a Treasury official speaking on condition of anonymity told dpa that the agency's move "reflects the urgency with which Congress should act to remove the threat of default hanging over the economy."

Starting Thursday, the potential for delays in payments to government suppliers, workers and pensioners "would damage the perception of US sovereign creditworthiness," Fitch said in a statement on its website.

"The prolonged negotiations over raising the debt ceiling ... risks undermining confidence in the role of the US dollar as the preeminent global reserve currency by casting doubt over the full faith and credit of the US," Fitch said. "This 'faith' is a key reason why the US AAA rating can tolerate a substantially higher level of public debt than other AAA sovereigns."

The potential Senate deal would set up budget talks by December 13 and could provide for another round of talks on broader budget issues such as entitlement reform. Social security and other mandatory obligations make up about 70 per cent of the US budget, lawmakers say.

Those broader talks could include measures to ease or adjust across-the-board spending cuts that took effect in March. The so-called sequester cuts resulted from a compromise for the last debt limit increase in August 2011. That agreement was only reached with hours before a similar deadline, leading another Wall Street ratings agency, Standard & Poor's, to reduce its US bond rating from AAA to AA+.

Treasury Secretary Jacob Lew set Thursday as the deadline when the country hits its debt ceiling, with only about 30 billion dollars left in cash, and risks default on various obligations.

Cargo transportation via Baku-Tbilisi-Kars railway in Q1 2021 increases
Cargo transportation via Baku-Tbilisi-Kars railway in Q1 2021 increases
NCDC Head: Georgia's epidemiological situation deteriorates
NCDC Head: Georgia's epidemiological situation deteriorates
Georgia reports 707 coronavirus cases, 592 recoveries, 8 deaths
Georgia reports 707 coronavirus cases, 592 recoveries, 8 deaths
Loading Bars
Latest
Iran's Saipa Group declares its manufacturing data
Uzbekistan to commission its first solar power plant in September
Exports from Iran's Isfahan Province decreases
Iran - among major countries in terms of diversity in nuclear industry
Iran’s Bahar Azadi gold coin price still falling
Cargo transportation via Baku-Tbilisi-Kars railway in Q1 2021 increases
Iran's Energy Exchange announces products to be on sale on April 12
Pakistan extends full support for reconstruction of Azerbaijani liberated lands - expert
Northeastern Iranian Prov exports $3b non-oil products
Kazakhstan reveals plans on rising petrochemicals production
Int'l community should be involved in restoration of Azerbaijani liberated lands - expert
Azerbaijani FM takes part in round table organized by ADA University (PHOTO)
Europe needs a more ambitious COVID recovery plan, says France's Beaune
Azerbaijan publishes latest data on vaccinated citizens
Local elections and referendum in Kyrgyzstan: Voting ends
NCDC Head: Georgia's epidemiological situation deteriorates
Turkey successfully tests hybrid rocket engine for moon mission
Azerbaijan confirms 2,414 more COVID-19 cases, 1,695 recoveries
Africa's COVID-19 cases pass 4.34 mln: Africa CDC
Those who ordered missile strikes on Ganja are responsible for war crimes - top official
Glad to see that Nagorno-Karabakh conflict is over - Hungarian official
Khazar Consortium in Turkmenistan opens tender for plumbing materials purchase
Azerbaijan showed great heroism during Karabakh war - Turkish Presidential Administration rep (Exclusive) (VIDEO)
Iran - one of radioactive drugs exporters
Turkey names 2M2021 volume of cargo shipment via local ports from Ukraine
Visit of Turkic Council’s delegation to Azerbaijan’s Ganja city starts (PHOTO)
Goal of Turkic Council’s delegation's visit to Aghdam was to see Armenian savagery - Assistant to president
Azerbaijan's Aghdam - clear example of urbicide, says top official (PHOTO)
UAE selects first Arab woman for astronaut training
Azerbaijan moving to new stage of its development – Uzbek Information and Mass Communications Agency rep
Turkmenistan Railways opens tender for purchase of material, technical resources
Cargo movements in Iran’s Bushehr port grow
Kazakhstan’s Vagonservice company opens tender to buy oil filters
Situation in Azerbaijan’s Aghdam district - unprecedented barbarism - Turkish Presidential Administration rep (VIDEO)
Iran reveals COVID-19 data for April 11
Indonesia's 6.1-magnitude quake leaves 8 deaths
Delegation of Turkic Council reviews building of Aghdam Drama Theater destroyed by Armenians (PHOTO)
Azerbaijani Finance Ministry to auction mid-term government bonds
Russia reports over 8,700 daily COVID-19 cases
Turkmen company exports batch of formwork sheets to Turkey
Delegation of Turkic Council visits Azerbaijan’s Aghdam Juma Mosque (PHOTO/VIDEO)
Delegation of Turkic Council visits Imarat cemetery destroyed by Armenians (PHOTO/VIDEO)
President Ilham Aliyev plays very important consolidating role in Turkic Council - SecGen (EXCLUSIVE)
Buy/sell operations at Iran Mercantile Exchange disclosed
Georgia reports 707 coronavirus cases, 592 recoveries, 8 deaths
Uzbekistan, Turkey strengthen trade, economic co-op
Visit of Turkic Council's delegation to liberated Aghdam starts (PHOTO)
Weekly review of Azerbaijani precious metals market
8 rescued, 21 trapped in coal mine accident in Xinjiang
Iran discloses details of exports from industrial parks of Semnan Province
Accident reported at Iran's nuclear facility
Copper ores and concentrates rank first in list of Georgian export
Azerbaijani MoD shows footage from Fuzuli's Ashaghi Rafadinli village (VIDEO)
President of Kyrgyzstan casts vote in local council elections, referendum
India records over 150,000 daily COVID-19 cases, tally at 13,358,805
Saudi-led coalition intercepts Houthi drone
Turkmenistan signs decree on rice production
Number of enterprises put into operation in Iran's Gilan Province revealed
Azerbaijani Gadabay's Executive Office to engage landscaping services via tender
Turkish Airlines to put its 737 Max jets back in the air next week
Kazakh COVID-19 vaccine to be bottled in Turkey
Submarine cable to connect electrical networks of Georgia, Europe to be additional direct channel for telecommunication traffic
IMF, World Bank urged to contain pandemic with fair, efficient distribution of vaccines
South Korean battery makers agree last-minute deal in boost to Biden's EV policy
Egypt, Sudan reject Ethiopian proposal for data sharing on Renaissance dam
Bezos, Musk top Forbes' record-setting billionaire list
Turkey registers more than 52 600 new coronavirus cases
China-Brunei trade grows by over 70 pct in 2020
Argentina's economy minister heads to Europe to woo finance officials over debts
US boosts imports of Turkish-made clothes
Turkey sends off 2nd boron export train to China
First kidney transplant performed in Turkmenistan
Bahar Azadi gold coin price continues to fall in Iran
Iran unveils data of gasoline and petrochemicals exports
New transmission line to provide opportunities for both Georgia’s and EU energy network - expert
Weekly review of key events in Azerbaijan's transport sector
China fines Alibaba record $2.75 billion for anti-monopoly violations
Italy reports 344 coronavirus deaths on Saturday, 17,567 new cases
Azercell’s “Kabinetim” mobile app exceeded 1 million downloads
Pakistani FM to visit Tehran
Funeral for UK's Prince Philip to be held on April 17
Pinterest becomes latest platform to appoint Turkey representative
Italy's economy seen growing 4.1% this year
Volume of cargo loaded, unloaded in Iran’s Bandar Lengeh port announced
Turkmenistan’s growth of trade turnover in 1Q2021 announced
Turkish electrical goods' 1Q2021 export to Uzbekistan spikes
Azerbaijani president's assistant talks Turkic Council media co-op's systematization
Hungary considers Turkic Council member states important partners
Iran's Energy Exchange announces products to be on sale on April 11
Uzbekistan ready to actively partake in restoring Azerbaijan's liberated territories
Azerbaijan confirms 2,192 more COVID-19 cases, 1,554 recoveries
Turkey did its best in media coverage of Azerbaijan's Patriotic war - presidential administration
Azerbaijani president's assistant meets with Turkic Council's secretary-general
Briefing of Turkic Council's high-ranking media officials held in Baku (VIDEO)
Anti-Turkic campaigns periodically carried out - Azerbaijani president's assistant
Azerbaijan's victory in Second Karabakh War is victory for entire Turkic world - top official
Azerbaijan working to develop ties between Turkic states - president's assistant
Turkic Council developing roadmap for better co-op with Turkic-speaking countries
Turkic-speaking countries to continue to support Azerbaijan - Turkic Council
Armenia's refusal to provide maps of mines on Azerbaijan's lands is concerning - ambassador
All news