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The rating agency S & P expressed its opinion about the US public debt

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The rating agency S & P expressed its opinion about the US public debt
September 01
09:00 2017

The authoritative agency S & P Global Ratings categorically spoke about the state of the US economy. According to the analysts, short-sighted actions of the congressmen can push the state into default. Beth Ann Bovino, the chief economist at S & P, said that in order to save the situation, it was necessary to urgently reconsider the upper limit of the public debt. In her view, the consequences of inaction can be more devastating for the US economy than the bankruptcy of the company Lehman Brothers in 2008. We recall that the bankruptcy of this company marked the beginning of the crisis in 2008.

Experts note that the inaction of Congress regarding the government debt limits could lead to a pause in the work of the United States government, national economic default and weekly losses of $ 6.5 billion.

The aggravation of the problems was provoked by the issue of financing the construction of the separation wall between Mexico and the United States. Congress does not hurry to allocate funds for Trump’s questionable initiative. The American president in turn promises to cover state institutions in case of financing failure of his favourite brainchild.

The Congressional Budget Office (CBO) has published a recommendation for the congressmen, which clearly states that it is necessary to reconsider the upper limit of the public debt upward by the end of this month. The haste is caused by the fact that the beginning of October is estimated by experts as a time when the Ministry of Finance will run out of all its funds and will not be able to raise new ones.

Minister of Finance Steven Mnuchin reminds that in order to save funding, his department uses a variety of tricks, including the preservation of liquidity. It is known that in the middle of summer Mr. Mnuchin appealed to Congress in order to reconsider the upper limits of the national debt . But there was no reaction.

The material was prepared with the participation of Andrey Majorov,
a leading analyst of the brokerage company CT Trade

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