U.s. Faces renewed insolvency – controversy over obamacare

u.s. faces renewed insolvency - controversy over obamacare

The USA is once again threatened with insolvency. The republican-dominated house of representatives voted on friday (local time) to approve a budget bill that would fund the government for another three months. The republicans, however, tied their bill to budget cuts for president barack obama’s controversial health care reform, which was passed on 1 january. October is to come into force. For the senate, where democrats are in the majority, this is unacceptable. Because the budget year ends on the 30th. September ends, the U.S. Congress has just over a week to avert the looming crisis.

President obama reacted with disgust. According to u.S. Media reports, he spoke by phone that night with the republican speaker of the house of representatives, john boehner. According to "new york times" both sides described the talk as brief and fruitless.

In case of insolvency, all government business had to be suspended. This could lead to a situation in which social security benefits can no longer be paid out. Civil servants were put on forced leave, offices and museums had to remain closed. According to the new york times sylvia mathews burwell, head of the house of representatives, has already given instructions to prepare for the emergency.

Obama spoke of a purely partisan move. "They are out to make a fool of me", he accused the republicans during a visit to missouri. "They hold the whole country as hostage." The USA is not an "ailing country.

Boehner celebrated the vote – 230 to 189 – as a victory for the people. "American citizens don’t want government shutdown, and they want obamacare not." According to the "washington post republicans will move later this week to try to force a one-year reprieve on health care reform. According to a CNN report, the republicans in the house of representatives have already tried more than 40 times to shortcut the budget for reform.

Observers expect the senate to scrap the republicans’ budget cuts and send the bill back to the house of representatives. There, the congressmen are faced with the difficult decision of either allowing the u.S. To default or funding health care reform after all.

At the same time, the world’s largest economy is heading for another showdown between republicans and democrats a financial crisis too. With the $16.7 billion debt ceiling reached in mid-october, congress must raise the limit to allow the government to borrow more.

In 2011, the rating agency standard& poor’s gives the u.S. Top credit rating "AAA withdrawn after the government and opposition had only agreed on an increase in the debt ceiling in dramatic negotiations. In early 2013, after weeks of wrangling, the republicans had temporarily overridden the nation’s debt ceiling to prevent the worst from happening.

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