U.S. Treasury Secretary Janet Yellen It has called on Congress to quickly set a new debt ceiling to avoid a catastrophic default.
Yellen warned Friday that the economy and the livelihoods of Americans “threatened irreparable damage” if the U.S. government could no longer pay its debts. Washington. That is why this has never happened regardless of the party in power.
The current debt ceiling expires at the end of July, meaning the US government can no longer make any new debt to pay for its expenses. From August, the finance ministry will have to take “extraordinary measures” to prevent the default, Yellen warned.
Due to the economic consequences of the epidemic, it is unclear how long the government will be able to finance it. By October 1 alone, there will be $ 150 billion (12 127.5 billion) in legal payments.
America is threatening to leave the money
The Independent Congressional Budget Bureau (CPO) estimates that without a new debt ceiling, the government will “most likely” lose money in October or November. Without a deal, the cap would fall to $ 22 trillion by its 2019 level in August, after which the accumulated debt would be about $ 6.5 trillion. So the CPO explains that the new upper limit will be about $ 28.5 trillion (.2 24.2 trillion).
So far, both Republicans and Democrats have agreed to raise the bar – mostly after tremors and several rounds of talks. President Joe Biden’s Democrats control the House of Representatives, but they rely on Republican support in the Senate. Economic consequences can occur without a contract United States, The stability of the world economy and financial system will be enormous.
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