USA on the way to recession

The US Department of Finance intends to use all funds to avoid default, even if Congress cannot attract 16.7 trillion. dollars of government (borrowing limit). The bad news is that the United States cannot prevent a recession.

Economists Goldman Sachs, IHS and BNP Paribas said they expect tax money from the treasury to make sure that they can pay off interest payments for the country's debt obligations. Other obligations on wages of public servants with payments of defense contractors will be cut. Result: for 175 billion dollars of state expenses less for only November.

Jim O'Neill, former chairman of Goldman Sachs Asset Management said: "Cutting will be so huge that he will return the United States back to the recession." Nariman Beravesh, the chief economist IHST said that "the probability that the United States will not increase its borrowing limit very low, and the probability of default is too high. The financial consequences would be terrifying,
Much worse than in 2008 the collapse of Lehman Brothers. "

US Finance Minister Jacob Lew said that the Extraordinary measures that he uses to avoid violation of the public debt limit will be exhausted no later than October 17. He said that the Treasury will have about 30 billion US dollars in hand, while social security expenses can be higher than 60 billion US dollars. This suggests that the government is not able to pay all its bills.