US politicians have been locked into negotiations about reducing the country’s discrepancy, with the two sides unable to agree a tax and spending package as the possibility of a debt default becomes visible. So what are the fair rules in such a situation? The risk could not be higher.
Republicans have discarded a bill to raise the US debt limit, in what forecasters describe as a bid to force government spending cuts. The chamber voted 318-97 against the bill, rejecting a call by President Barack Obama to raise the debt limit without conditions.