From NY timesThe US Senate, largely dominate by Democrats, passed a bill with a vote of 81-18 to avert the budget and debt limit impasse at the 11th hour. (Wednesday evening) Failure to act on the issue would have meant credit downgrade by rating agencies, and debt default The deal was hammered by Senators MacDonnel and Reid. The deal would finance the govt through Jan l5, and raise the debt limit till February 7.
The Congress, largely controlled by GOP conservatives, did not object. The Obamacare defunding is not included in the deal. It was seen as a defeat for the conservative Republicans
There was a lady who said that there would be no default, since the US Fed can print money and there is unlimited amount of funds the Fed can print. The lady forgot to think that the US Fed Central Bank is independent of the rest of US govt. And precisely there is the debt limit law to prevent the US treasury from dipping its hand into the body that deals with the currency. Even with such separation, the debt limit was breached several times during Obama administration.
