Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Yellen warns of catastrophic default: ‘Time is running out
The Hill ^ | 05/16/2023 | JULIA MUELLER

Posted on 05/16/2023 7:29:50 AM PDT by ChicagoConservative27

Treasury Department Secretary Janet Yellen warned Tuesday that “time is running out” for Congress to lift the debt ceiling and avert a default on the nation’s debt, which the secretary says would be catastrophic for the economy.

“Time is running out. Every single day that Congress does not act, we are experiencing increased economic costs that could slow down the U.S. economy,” Yellen said in remarks to the Independent Community Bankers of America.

Yellen’s department has warned that its ability to stave off a default through the use of extraordinary measures could run out by June 1 unless Congress takes action, and the White House has been locked in debate with lawmakers on how to address the looming deadline.

(Excerpt) Read more at thehill.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: catastrophic; default; warns; yellen
Navigation: use the links below to view more comments.
first previous 1-2021-39 last
To: ChicagoConservative27

Yellen warns of catastrophic default: ‘Time is running out

Biden will deal with it when he returns from his week long Italian vacation.


21 posted on 05/16/2023 8:04:27 AM PDT by PIF (They came for me and mine ... now its your turn)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ChicagoConservative27

Give us unlimited power to borrow and print money or we will sink the country. That’s what she’s saying.
At some point an adult in the room will take the punch bowl away and end this orgy...we hope.


22 posted on 05/16/2023 8:04:44 AM PDT by Deo volente ("When we see the image of a baby in the womb, we glimpse the majesty of God's creation." Pres. Trump)
[ Post Reply | Private Reply | To 1 | View Replies]

To: VanShuyten

The Dems playbook has been used over and over:

—Close national parks and monuments
—Only “essential” federal employees report to work

Start name calling and finger pointing.

Yawn.


23 posted on 05/16/2023 8:05:00 AM PDT by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
[ Post Reply | Private Reply | To 18 | View Replies]

To: eyeamok

CONGRESS already passed a debt ceiling increase, the Pedophile President is holding it up.


The House passed it, but the bill was DOA in the Senate. Congress refers to BOTH houses.


24 posted on 05/16/2023 8:06:10 AM PDT by PIF (They came for me and mine ... now its your turn)
[ Post Reply | Private Reply | To 20 | View Replies]

To: All

There are some favorite conservative positions that do not hold water on this matter.

First is — stop spending and thus stop borrowing. Total spending is $6.3T (2022). Of that, about 23% is borrowed each year.

Of the $6.3T, $1.2T is Social Security. Medicare is $0.75T. Interest listed as $0.5T but that number is nearly double now from last year given rate increases. DoD is $0.75T. Notice I have excluded Medicaid and Welfare. These items add to $3.2T.

Before noting Medicaid, keep in mind 62% of nursing home residents are funded by Medicaid. It’s not only inner city poor getting Medicaid for healthcare. The majority of those $120K/yr nursing home residents are Medicaid because the elderly can’t fund that from Soc Sec. And for the other 38%, keep in mind many Skilled Nursing Facility residents are in rehab for surgery and might be only 40 yrs old, so no, Medicaid is not paying that. Point being, Medicaid is going to have to pay for nearly everyone over 65 in an SNF at some point before death. Medicaid is $0.6T.

Income security (welfare, section 8, food stamps) $0.6T.

The point there is you could ZERO, not reduce, ZERO the total of Medicaid and Income Security and STILL be borrowing money. And be paying for your parents nursing home out of YOUR pocket.

Second, spending rises with population.

Third, interest rates are rising.

Fourth, no the Fed cannot simply print the required deficit. “Print” means buy bonds issued by Treasury. It is those bonds that cannot be issued because of the debt ceiling. The Fed can certainly buy bonds if issued, that is what printing money has been for 15 years, but if bonds cannot be issued because of debt ceiling, the Fed cannot do the bailout.


25 posted on 05/16/2023 8:07:12 AM PDT by Owen
[ Post Reply | Private Reply | To 9 | View Replies]

To: ChicagoConservative27
Yellen’s department has warned that its ability to stave off a default through the use of extraordinary measures could run out by June 1

Extraordinary measures LOL. They might seem extraordinary to your typical low-IQ lazy ass dip chit government employee that never had an eff'n real job in his life. (written with minor condescension). Extraordinary to a government scumbag is everyday in the life of a small businessman. In the business world, it is called prioritization. Some bills get paid sooner than others, particularly in difficult economic times.

Defaulting on the debt will only occur when government does not prioritize paying interest on the debt over paying for all the bull chit government programs. There is on-going revenue to pay the bills, but not all the bills. The government and government programs are ripe for downsizing. The vast majority of the people would never miss a 30% cut in government. The vast majority of tax payers would never miss a 50% cut in government. Your lives would go on and you might just feel a bit more free.

26 posted on 05/16/2023 8:07:21 AM PDT by ConservativeInPA ("How did you go bankrupt?" Bill asked. "Two ways," Mike said. "Gradually and then suddenly." )
[ Post Reply | Private Reply | To 1 | View Replies]

To: ChicagoConservative27

She talks like my Econ 101 professor. That woman made no sense either.


27 posted on 05/16/2023 8:08:37 AM PDT by Vermont Lt
[ Post Reply | Private Reply | To 1 | View Replies]

To: PIF

either way, it is the demonrats holding it up


28 posted on 05/16/2023 8:11:06 AM PDT by eyeamok
[ Post Reply | Private Reply | To 24 | View Replies]

To: Owen

“if bonds cannot be issued because of debt ceiling, the Fed cannot do the bailout.”

There is a hidden assumption there.

Let us put in out in the open and inspect it.

The assumption is that the US Treasury must obey the law.

It is only valid is there is someone who will punish those officials if they break the law.

See the flaw?


29 posted on 05/16/2023 8:11:34 AM PDT by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
[ Post Reply | Private Reply | To 25 | View Replies]

To: ChicagoConservative27

Every single day that Congress does not act, we are experiencing increased economic costs that could slow down the U.S. economy,” Yellen said

Then cut that final 6 billion we never had in the first place to Ukraine. Shut the border and send those people back to wherever they come from.

That will ease the burden.


30 posted on 05/16/2023 8:11:34 AM PDT by dforest
[ Post Reply | Private Reply | To 1 | View Replies]

To: BenLurkin

Stopping the spending beyond your means is the first step. But they have to continually “roll over” the existing debt.

What Clinton did back in the 90’s was to restructure our debt profile and how we use debt. In essence, he moved the payment of expenses to longer term bonds. This is akin to paying all of your living expenses with a credit card. This works until the cost of servicing the debt shoots up. Then you are screwed.

Long term debt should be used for capital expenditures, not short term expenses.

Anyone “shocked” by this hasn’t been paying attention. And they haven’t been paying attention for at least 35 years.

This isn’t an R or D problem. This is a “politician” problem.


31 posted on 05/16/2023 8:13:42 AM PDT by Vermont Lt
[ Post Reply | Private Reply | To 5 | View Replies]

To: ChicagoConservative27

Captain Kangaroo threatens Americans...


32 posted on 05/16/2023 8:17:11 AM PDT by subterfuge (I'm a pure-blood!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: jonascord

Why can’t a single reporter ask her, ‘Madam Secretary, which payments will you pay and which ones will get missed?’ Why? Anyone? Class? Bueller?


33 posted on 05/16/2023 8:30:37 AM PDT by Hipshot 6 (Hipshot 6, Out)
[ Post Reply | Private Reply | To 13 | View Replies]

To: ChicagoConservative27

Can you imagine going into a car dealer and they tell you they want to negotiate the sale with you; only to find out that their position is not budging an inch and the negotiation is actually to bring you up to their price?


34 posted on 05/16/2023 8:49:57 AM PDT by VinnieCCT
[ Post Reply | Private Reply | To 1 | View Replies]

To: VinnieCCT

‘Can you imagine going into a car dealer and they tell you they want to negotiate the sale with you; only to find out that their position is not budging an inch and the negotiation is actually to bring you up to their price?”

sounds totally normal to me..


35 posted on 05/16/2023 9:07:56 AM PDT by algore
[ Post Reply | Private Reply | To 34 | View Replies]

To: ChicagoConservative27

So tell the Senate to hurry up


36 posted on 05/16/2023 9:22:34 AM PDT by struggle
[ Post Reply | Private Reply | To 1 | View Replies]

To: ChicagoConservative27

They say this every year or two. In reality if the debt ceiling is not raised the administration will be forced to cut spending. They will not default on the interest payments on the debt.


37 posted on 05/16/2023 11:57:24 AM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Diogenesis

In a prior life—she was captain of the Titanic.


38 posted on 05/16/2023 12:12:21 PM PDT by ridesthemiles
[ Post Reply | Private Reply | To 2 | View Replies]

To: cgbg

I doubt anyone at Treasury would risk it. That’s a very long statute of limitations. Risking a GOP president and DoJ.

The issue is not Treasury obeying the law. It would be all individuals involved.


39 posted on 05/16/2023 1:45:46 PM PDT by Owen
[ Post Reply | Private Reply | To 29 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-39 last

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.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson