US averts disaster, for now

WASHINGTON: The US congress has rubber-stamped a short-term bill to increase the country’s borrowing authority, narrowly averting the threat of a first-ever debt default by the world’s biggest economy – but only for a few weeks.

The Democratic-controlled House of Representatives has voted along party lines to pass the stopgap $Us480bn increase, which advanced from the Senate last Thursday after weeks of heated debate.

“It’s about the kitchen table, it’s about our economy, the global economy, but

it’s also about our constitution which says the full faith and credit of the United States shall not be in doubt,” Democratic House Speaker Nancy Pelosi (pictured) said ahead of the vote.

Democratic leaders had spent weeks underlining the havoc that a default would have wrought, including the loss of six million jobs and $US15 trillion in household wealth – as well as increased costs for mortgages and other borrowing.

Republicans refused to offer any of their own votes to avert the devastating crisis.

However, the new arrangement merely kicks the can down the road. The government’s coffers will officially run out on December 3.