Posted on 01/13/2023 1:16:48 PM PST by ChicagoConservative27
WASHINGTON (AP) — Treasury Secretary Janet Yellen notified Congress on Friday that the U.S. is projected to reach its debt limit on Thursday and will then resort to “extraordinary measures” to avoid default.
In a letter to House and Senate leaders, Yellen said her actions will buy time until Congress can pass legislation that will either raise the nation’s $31.4 trillion borrowing authority or suspend it again for a period of time.
Those measures include divesting some payments, such as contributions to federal employees’ retirement plans, in order to provide some headroom to make other payments that are deemed essential, including those for Social Security and debt instruments.
(Excerpt) Read more at breitbart.com ...
Great input on the nuts and bolts at work here. Bottom line that this “interest” on the manufactured debt is going to (mostly crooked) bankers, which most people don’t get. It’s probably one of the main reasons the debt is being run up. But without a change to the mechanics, behind the scenes as you describe, it wouldn’t make as much sense, because inflation would eat up a lot of the value of the interest earned, eventually.
But the Federal Reserve notes are not issued by the “government.” Lol.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.