The US government could run out of cash and be forced to default on its debt if lawmakers fail to raise the debt ceiling by Dec. 15, Treasury Secretary Janet Yellen warned Tuesday.
Yellen explained that the new deadline comes as a result of the $1 trillion infrastructure agenda, which was signed into law by President Joe Biden on Monday.
Many Republicans have said they won’t cooperate on any effort to raise the debt ceiling come December, saying that the US needs to reign in its out-of-control spending.
If the debt ceiling isn’t raised, the Treasury would likely be forced to prioritize certain payments like Social Security. The cutting of certain programs would likely fall disproportionately on the elderly and poor.
Raising the debt limit would not authorize any new spending, but rather let the government issue new debt to pay for existing obligations.
Yellen has insisted that a US default, in which the Treasury delays interest payments on debt, could devalue the US Dollar and launch the country as well as the world into a major recession.
Congress nonetheless has a number of other burdensome items, including passing Biden’s $1.8 trillion American Families Plan, that it must address before grappling with the debt ceiling.
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Its worth reading every word of text.
Yellen explained that the new deadline comes as a result of the $1 trillion infrastructure agenda, which was signed into law by President Joe Biden on Monday.
Many Republicans have said they won’t cooperate on any effort to raise the debt ceiling come December, saying that the US needs to reign in its out-of-control spending.
If the debt ceiling isn’t raised, the Treasury would likely be forced to prioritize certain payments like Social Security. The cutting of certain programs would likely fall disproportionately on the elderly and poor.
Raising the debt limit would not authorize any new spending, but rather let the government issue new debt to pay for existing obligations.
Yellen has insisted that a US default, in which the Treasury delays interest payments on debt, could devalue the US Dollar and launch the country as well as the world into a major recession.
Congress nonetheless has a number of other burdensome items, including passing Biden’s $1.8 trillion American Families Plan, that it must address before grappling with the debt ceiling.
...
Its worth reading every word of text.
