Posted on 09/08/2021 12:33:56 PM PDT by EBH
Treasury Secretary Janet Yellen on Wednesday warned House Speaker Nancy Pelosi that the mere specter of a U.S. default can have drastic consequences.
Yellen reiterated that lawmakers have until some point in October before the department exhausts its extended efforts to prevent what would be a historic default.
“A delay that calls into question the federal government’s ability to meet all its obligations would likely cause irreparable damage to the U.S. economy,” Yellen wrote.
Pelosi replied that addressing the ceiling “has to happen” and called upon Republicans to support an increase.
Since the Treasury Department is not allowed to issue new debt before Congress suspends or increases the ceiling, Yellen and her lieutenants have invoked “extraordinary measures” to conserve cash and avoid busting the federal borrowing limit.
The extraordinary measures allow the Treasury to redeem certain investments in federal pension programs and halt new ones in order to generate cash without raising the overall debt. But when those methods are exhausted, there is no backstop.
Unless Congress addresses the ceiling, payments on Social Security, Medicare, military spending, interest on U.S. debt and other obligations simply halt.
(Excerpt) Read more at cnbc.com ...
America is on the verge of bankruptcy.
Janet Yellen warns US Treasury risks running out of cash in October
Letter to congressional leaders comes as White House worries about possibility of debt default
https://www.ft.com/content/4433d8ef-7d18-4c07-ba08-7f05fcbdb0b8
Of course Old Yellen wants to raise the debt. That’s all Democrats do is spend and tax.
Any advice on IRA's, anyone?
What subscription do you recommend I buy in order to read your post reference.
I believe there was a Law Passed in the first few months of Barry the muslim’s term that gave the US Treasury “Emergency Rights” to SIEZE Personal Retirement Accounts and replace the “funds” with Treasury Bills.
If the Republicans have the Balls to hold out, we just might see them attempt to use this law, then all Hell will break loose!!
Uncle Sam’s Progressive heroin in running out.
CLOWARD & PIVEN.
Its our only hope at this point. The left controls pretty much all the organs of government. Bankrupting them may be the only way out.
I urge Congress to stop creating debt.
The show must go on...
My kids demand that the borrowing stop!
They want it Unlimited
All payments to Congress and WH must halt also, at the same time. If I screwed up on my job, causing all departments to suffer and stop production, I would be terminated. If this happens, all of congress should be terminated, with no pay
Guessing Yellen from Biden did not get the memo: we are not a world power anymore.
IMHO, this is just the first murmuring that will turn into screaming soon. The stock market will (temporarily) go down at least 10% as the screaming commences. This will add pressure on the Republicans to fold, which they will (with small concessions from Democrats) and the market will recover once they’ve kicked the can down the road.
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