U.S. Congress stuck between a rock and a hard place on raising debt limit | WHAT REALLY HAPPENED X-Frame-Options: DENY X-Frame-Options: SAMEORIGIN

U.S. Congress stuck between a rock and a hard place on raising debt limit

Democrats and Republicans will start what could become a monumental game of chicken this month over raising the limit on U.S. government borrowing, as Congress attempts to avert an historic debt default.

Leaders of the Democratic-led Senate and House of Representatives are expected to force votes to lift the $28.4 trillion debt limit in late September. The limit was technically breached on July 31 but is being circumvented by Treasury Department “extraordinary” steps.

Failure could lead to a potentially catastrophic default on debt repayment obligations or a temporary shutdown of some federal operations. A default would be unprecedented, but shutdowns have taken place three times in the past decade.

Adding to the pressure, Republicans aim to sit on the sidelines and let Democrats either take the heat for a default that could leave financial markets in chaos, among other things, or take full responsibility for raising what they call an out-of-control federal debt.

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