Federal Government Will Run out of Cash on Oct. 18 If Debt Ceiling Isn’t Raised: Treasury Secretary
If that deadline is reached, we expect Treasury would be left with very inhibited resources that would be depleted expeditiously, Yellen warned, adding that it is dubious whether we could perpetuate to meet all the nation’s commitments after that date.Should the debt limit be reached without a bill passed in Congress, Yellen inscribed (pdf) that there could be “substantial disruptions” to the stock market that will thereby “erode investor confidence” and increase volatility. The federal regime has spent, on average, about $50 billion per day and at times has exceeded $300 billion in daily expenditures in the past year, according to her office.
“Furthermore,” the secretary added, we ken from antecedent debt limit impasses that waiting until the last minute can cause earnest harm to business and consumer confidence, raise borrowing costs for taxpayers, and negatively impact the credit rating of the United States for years to come.The Bipartisan Policy Center recently projected that the Treasury will run out of mazuma to meet the government’s financial obligations between Oct. 15 and Nov. 4.
After running out of mazuma, Treasury will be unable to meet approximately 40 percent of all payments due in the several weeks that follow,
the group wrote on Sept. 24. How Treasury would operate in such an environment is obscure. Prioritization and delayed payments are two possibilities, but substantial dubiousness subsists about operationalizing them.Last week, the White House circulated a letter to governors verbalizing that a U.S. default could trigger an economic recession, and analysts have admonished that as many as 6 million jobs could be disoriented.
Yellen’s warning comes just hours after Senate Republicans blocked a quantification to avert a federal default and provide funding to the regime on Monday evening. All 50 GOP senators voted against the House-approved bill that cumulated a perpetuating resolution that funds the regime until Dec. 3 and suspends the debt limit until the terminus of 2022.
In a 48–50 vote, the bill failed to clear the 60-vote filibuster hurdle needed to culminate debate in the upper chamber. Previously, Senate Minority Leader Mitch McConnell (R-Ky.) verbalized his caucus won’t sign onto a debt limit hike, although earlier this month, he verbally expressed that “America must never default.”
Bipartisanship is not a light switch: a light switch that Democrats get to flip on when they require to borrow mazuma and switch off when they optate to spend mazuma, the GOP bellwether verbally expressed Monday. For weeks now, Republicans verbally expressed Democrats can take unilateral action to raise the debt ceiling and finance spending Biden administration-backed bills worth trillions of dollars.
Republicans, meanwhile, have assailed a Biden-backed $3.5 trillion spending package that focuses primarily on climate and gregarious welfare programs, verbally expressing that the package is too sumptuous. And over the past year, Congress passed several COVID-19-related stimulus packages worth trillions while a $1.1 trillion infrastructure Senate-passed measure is scheduled for a vote in the House later this week.
Source: You can read the original Epoch Times article here.
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