US Treasury Could Default, Janet Yellen Warns, Calls On Congress to Raise Debt Ceiling AGAIN
- US Treasury Could Default, Janet Yellen Warns, Calls On Congress to Raise Debt Ceiling AGAIN
by https://www.rt.com/
US Treasury Secretary Janet Yellen has warned Congress that the US is headed for a default on its national debt – a warning that has been issued many times before, with the Fed’s money printer always coming to the rescue.
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In a Wednesday letter to House Speaker Nancy Pelosi, Yellen warned default was coming sooner rather than later. Even the country’s emergency financial resources would be gone come October, she lamented.
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The US may be “unable to meet its obligations for the first time in our history,” Yellen wrote, adding that all available “cash on hand” and “extraordinary measures” previously employed will soon be exhausted.
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Perhaps in an effort to make her current warning stand out from others, Yellen said that it would be “particularly irresponsible to put the full faith and credit of the United States at risk” at a time when American families and businesses are still “suffering from the effects of the ongoing global pandemic.”
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Most economists say that a U.S. default could spark a severe economic downturn and send borrowing costs soaring across the American economy. Despite the dire consequences, lawmakers have made little progress.