Yellen Warns Debt Ceiling Failure Would Be 'Catastrophic'

[Yo_Mama_Been_Loggin]

Source: The Fiscal Times

Treasury Secretary Janet Yellen told lawmakers Wednesday that they must raise or suspend the limit on total U.S. debt before August 1, or risk incurring “absolutely catastrophic economic consequences.”

A two-year agreement that has suspended the debt ceiling expires after July 31, at which point the Treasury would take what it calls extraordinary measures to keep paying the government’s bills. In the past, the Treasury’s extraordinary measures have provided a cushion of several months, but massive spending on Covid relief programs has muddied the financial picture. Speaking to a Senate subcommittee, Yellen said the government could run out of money at some point in August, possibly when Congress is out of town on its summer recess.

“I believe it would precipitate a financial crisis, it would threaten the jobs and savings of Americans, and at a time when we're still recovering from the COVID pandemic,” Yellen said of a default.

“I would plead with Congress simply to protect the full faith and credit of the United States by acting to raise or suspend the debt limit as soon as possible.”

Read more: https://www.msn.com/en-us/money/markets/yellen-warns-debt-ceiling-failure-would-be-catastrophic/ar-AALn0py?li=BBnb7Kz

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Cue the Republican grandstanding.

[Stuart G]

1. This will get done, no matter what happens...Biden knows the consequences.

If PUKES resist raising the limit, there will be all out war....But PUKES know the consequences and have
money invested like most "rich people"..so the debt limit will be raised quietly and without debate..


The PUKES...will NOT.. grandstand this..Their investments are more important than politics.....

said in a different way:...Their money is more important than anything else..or politics.

[certainot]

6. will Putin use talk radio and social media to push default like he used Limbaugh in 2011?

Limbaugh led the teabag push to default, another Putin job on the US, and they got sequestration.

that was an indication that Limbaugh was being used by Russia - what American billionaire would want default?

it has been really fucking stupid for progressive orgs to keep ignoring rw radio,. the biggest political mistake in history

[Girard442]

2. Ummmm... Could it be?

1. Republicans block an increase in the debt ceiling.

2. Economy crashes and burns.

3. R's blame Biden.

4. Massive D losses in 2022.

Time to check the sprinkler system in the Reichstag, maybe?

[Stuart G]

4. No...the Pukes have a lot of money invested..They do not want the economy to crash & burn

....Money in the end is far more important than politics...Keeping Biden in to protect their money
...(if that sounds reasonable) is best for them & us.

[EYESORE 9001]

5. The billionaires who really run things would never allow that to happen

They would take out contracts on any repuQs who mounted a serious threat to allow the economy to crash and burn. Contracts with killers who know how to by god get things done.

[Budi]

3. But isn't that catastrophy precisely what the enemies of Democracy want?

To systematically destroy the Democracy of a Country the size of the USA, to sit back in the vulture seat and "Watch the US collapse on itself, watch it all burn, then reach in for a scavengers share"... isn't that exactly the end game of how Democracies fall?

History says it is right on target & as in 2016, the warnings are blaring loudly.

Heed the advice of Yellen & save the USA, because if this is the deadline then tRump may indeed be our Forever Dictator, as he says.

August is a short & treacherous timeframe, & don't expect the Republucans to agree to fix the pending crisis.
They are THIS close in their mission to take apart the government of the once Greatest Country in the World by by imploding its strength's upon itself. Not a bomb need be dropped.

Name a country that we'd resemble should this catastrophy not be held back.
Rather terrifying isn't it.


Appreciate your OP, Yo_Mama_Been_Loggin

[BComplex]

7. Republicans HOPE for a financial crisis during a democratic presidency.

They don't care about the millions of lives that would/could be destroyed. They are so simple minded that all they care about is "owning the dems".