NEW YORK (Commodity Online): The US senate has voted to raise the debt ceiling limit by an additional $1.2 trillion, bringing the total debt ceiling at a mammoth $16.4 trillion. Democrats defeated Republicans 52-44.
The increase will essentially mean that the US will be able to pay through its bill atleast until November, just past the elections while also ensuring that the country does not default.
The additional debt will also be matched by $1.2 trillion in spending cuts, effective in January 2013. Defence spending cuts are expected to account for half of the total $1.2 trillion spending cuts.
With the US policymakers loading up on more debt and the unable to boost economic growth, the public confidence on the government has been seen waning. A recent opinion poll shows that public approval of the congress has dropped to the lowest in 38 years.
