Posted on 05/22/2023 5:15:45 PM PDT by 11th_VA
Washington is publicly planning for what the world could look like on June 1 if no debt-ceiling deal is in place.
The immediate economic effects of the first-ever true default in American history are far from clear. They are being debated as negotiators remain divided across a range of issues.
Time is running low to strike a deal and then get it into law ahead of the key deadline just 10 days away. President Joe Biden and House Speaker Kevin McCarthy are meeting Monday at 5:30 pm ET for yet another round of talks.
Treasury Secretary Janet Yellen maintains that a deal needs to be reached and "it's not an acceptable situation for us to be unable to pay our bills."
Her first priorities if there is no deal by June 1 would include paying for interest on existing debt as well as making sure Social Security recipients and military employees get their checks on time, she said Sunday on NBC’s “Meet the Press.
“There will be hard choices to make about what bills go unpaid” if the talks fail or are too slow.
But there is a view in Washington among some Republican lawmakers that economic unrest could be limited initially. That was echoed Monday by Strategas Securities Managing Director Jeannette Lowe, who said Yellen's approach could mean June 1 "actually wouldn't be a real default."
If June 1 arrives with no deal, the government would then "maybe withhold payments to government contractors and that's where you could see a risk" especially for companies tied to sectors like defense and health care, Lowe said.
Stifel Chief Washington Policy Strategist Brian Gardner agrees with that view, while noting "the caveat that none of this has been tested."
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(Excerpt) Read more at finance.yahoo.com ...
Lay off all unnecessary Federal Employees...with no payment when they go back to work. It’s not paid vacation!!
Elected officials also.
They ALWAYS fill the Debt Ceiling issue with lots of Drama and politicians heralding talking points.....in the end they always raise it.
Cut off the EBT cards.
No hard choice... Send them all home for the duration. Shut it down. Does anyone have any idea how much just the supply line to “pamper” Congress and the Administration costs us per day? Let them eat TV dinners like the rest of us.
“I’ve always been a little unclear about the “unnecessary” thing. If they’re that, what are they doing there in the first place? “
Because it takes four to do the work of one...
Cut all government across the board 25%. It would hurt like hell but it could save our country and stave off hyperinflation and we could recover faster.
BTW, I am on SS and Medicare so it would affect me but I prepared for hard times.
Prepper’s ping. Looking forward to chaos happening on June 1 but it won’t. It will happen one day though.
Social Security, Medicare, Medicaid, SNAP, TANF, etc., ate unconstitutional. We need to eliminate all of them ASAP.
Social Security is paid by its own funds from money accrued when people work and contribute to it. Any discussion about the debt ceiling involving SS is a flat out lie.
I hope McCarthy is ‘war gaming’ this - if this drags on, lots of Government contracts won’t be renewed in October - that’s probably the RAT plan.
Cease all spending on DIE/Woke training, er...indoctrination.
Cease all stupid spending on why fish swim or stupid stuff like that.
Cease Congressional travel overseas.
Starters.
Social Security is taken from people as we work....we don’t voluntarily contribute to it.
True that. I shouldn’t have used the word “contribute”.
No problem at all.
Yup the republicans always cave
Yeah, that “no payments when they return” is important!
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