The lawmakers are facing hard time while raise the debt amount of $16.7 trillion for the fresh estimate. Congress faces the difficulty as well for the pass of a bill, and fund the government after 1st October. Lew said that the failure of the government to pay the bill can result in massive disaster. The Republican and the Democratic Lawmakers are facing each other to come to a decision regarding the bill, and for the extension of the borrowing authority of the Treasury. In the midst of all these happenings, the House of Representatives controlled by the Republicans concentrates on the dismantling of Obama’s health care law for the exchange of the debt limit vote.
The House leaders have marked the words that there are no decisions finalized, but the same will be done as soon as possible. Well, Obama is clearly not in a position to negotiate with the Republicans and have clearly stated that. According to a spokesperson of the House, Obama’s disagreement means that both the parties need to collaborate well enough to strengthen the overall economic growth. The statement also includes the fact that refusing the Congress is never a solution. On the other hand, the government has been able to stick to their decision and has also been available to manage the cash while going for the employment of the measures, which take care of the emergency requirements.
In the past, the US Treasury mentioned that the said cash management tools would be exhausted by the middle of October. During this time, it would about $50 billion in cash on hand. Lew said that this updated estimate directed to the fresh info on the quarterly tax receipts. The info was also to be put to effect regarding the activities of the most vital trust funds, which are controlled and monitored by the government.
For maintaining the debt limit deadline, a temporary spending bill was passed by the Republican-controlled House. The bill involved the requirement that the Treasury will hold the responsibility of the payments regarding the Social Security Retirement and the bondholders. The Treasury will be put in such a position if Congress fails to raise the cap within the time. Lew disapproved the provision by saying that any plan for the prioritizing the government payments over the others will be defaulted by any other name.
According to Lew, no such provision will be affected which will have a negative impact in the financial markets of the nation. He went on further saying that any repeating of the brinkmanship will lead to more harm to the economic condition of the nation. In fact, this can also influence a large part of the economic system in the global stage. It is always a fact that the failure to pay the bills will put the government under a lot of question marks. In fact, the failure will actually create a huge mayhem, influencing the related occurrences. It is certainly not acceptable that the economic tables are turned for the worse.