US Debt Ceiling Deal Emerging After Fight In Congress

An agreement on the US debt ceiling appeared to be emerging Tuesday after much back and forth between the Democrats and Republicans in Congress, but the battle will likely see round 2 early next year.

That is because a deal is likely to raise the nation's borrowing power only for a few months, setting the stage for more partisan brinkmanship in winter.

Thursday stands as a crucial deadline -- the last day the federal government is certain to have enough money to pay its bills, and failure to raise the debt ceiling could cause all geo- economic hell to break loose, analysts said.

While the bill now under consideration in Congress would extend the country's borrowing authority, the legislation would only last until Feb.7. Once that date approaches, analysts expect both sides to again come out swinging in a knock-down, drag out fight.

"No matter what deal we get, we're going to continue to move from fiscal crisis to fiscal crisis," Ford O'Connell, a Republican strategist, told Xinhua.

"They're not going to actually default," he said of Congress. "They're going to reach a last-minute deal .. We're going to move from fiscal crisis to fiscal crisis until both sides achieve a grand bargain."

Read more at Global Times

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