Last night, the United States Senate announced a 12 hour delay on the vote to raise the debt ceiling. This action raises hope for resolving this crucial crisis.
Harry Reid, the Senate Democratic leader, announced that they needed more time to reach an agreement that would acclimate to a deal.
If the debt ceiling isn’t raised, the United States does not have the resources to pay back interest on debt, announced the Treasury.
Both the Republicans and Democrats have agreed to make major cuts in spending to increasing national savings. The dispute at hand is how much more money is it going to take and how much more will be cut in the future.
The democrats need 60 votes in the Senate to pass the debt ceiling proposal, which amounts to at least 7 republicans if all 53 democrats vote for this deal.
Even if the bill is passed in the Senate, it will be a struggle for the bill to pass in the Republican controlled House.
President Barack Obama stated that “There are plenty of ways out of this mess, but we are almost out of time.”
This political and financial struggle is giving the United States an increased amount of attention around the world for their inability to decide on this debt ceiling crisis.
The United States has a deadline of August 2nd and if a deal cannot be arranged, there will be major consequences.