As the President and Congress remain at loggerheads over how to best manage the country’s debt problem, Hillary Clinton says she is certain that an agreement will be reached in time.
As the Secretary of State, Mrs Clinton is a leading public figure and moved to reassure business leaders in Hong Kong that the superpower had things under control.
Speaking to a delegation in Hong Kong, Mrs Clinton said that the US ‘understood the stakes’ for other nations and that she joined Timothy Geithner, the US Treasury Secretary, in his belief that a decision would be reached.
The US government currently owes $14.3 trillion in debts and does not have sufficient funds to repay the next set on installments due at the beginning of August.
Much has been spoken about the debts but who are they actually owed to?
The single biggest creditor the US government owes money to is actually itself. The sum owed to the US is $4.6 trillion, the biggest debt by far. Around $9.7 trillion is owed to a variety of investors stretching across both private companies and public funds. Included in the list are banks, private investors as well as pension funds. Foreign states are also owed money with the UK waiting for $0.35 trillion, Japan $0.91 trillion and China $1.16 trillion.
In the last 10 years, the debt limit has been raised by Congress a total of 10 times. President Obama has described his latest offer to the Republicans as ‘extraordinarily fair’ with a $1 trillion reduction in the discretionary spending budget included in the plan.
After the two sides failed to reach an agreement at the weekend despite emergency talks, the White House pleaded with Congress to ‘do its job’ and ‘refrain from playing reckless political games…’