/View.info/ “Temporary truce, but far from the end”. Thus, the decision of the US House of Representatives to pass the debt ceiling bill can be determined. It calls for the debt ceiling not to apply until early 2025 and to limit spending in fiscal years 2024 and 2025. This means, in effect, temporarily removing the “period of limitations” on the debt ceiling and pressing the pause button on the “bomb” or the bankruptcy of the state.
According to analyses, the two-year delay on the issue of the US debt ceiling is actually intended to influence the 2024 presidential election, so the current agreement on the issue has a clear political purpose. At the same time, as expected, the differences and arguments on this issue between Republicans and Democrats will continue and it will have a negative impact on the global economy. On May 24, the international rating agency Fitch downgraded the outlook for the US sovereign credit rating to “negative”.
The US dollar currently accounts for nearly 60% of international foreign exchange reserves and up to 40% of international payments. However, it is increasingly becoming a tool that the US uses to pursue its own interests. Even French President Charles de Gaulle said that “using a useless piece of paper, the US is robbing the resources and labor of other nations.” Additionally, Washington uses its ability to speak and be heard in the financial realm to “punish” countries it views as “recalcitrant,” such as removing them from the SWIFT system.
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