After the US Congress failed to pass legislation raising the debt ceiling by Thursday, US Treasury Secretary Janet Yellen told lawmakers the department had begun implementing so-called extraordinary measures to keep paying the federal government’s bills.
The clock on a US government default began ticking down on Thursday, as US lawmakers failed to increase the $31.4 trillion debt ceiling to allow for more government spending.
The Treasury chief has a number of other tricks up her sleeve to use existing funds to meet the US government’s financial obligations, which effectively amount to pausing spending on programs to prioritize debt payments.
Yellen has predicted that the Treasury’s extraordinary measures can only provide for debt payments until early June at the latest, at which time the US federal government would default on its debts, triggering an economic catastrophe.
Congress created the debt ceiling during the First World War to simplify the passage of large spending bills to finance the war effort, as it had previously authorized all debts individually.
However, in recent years the debt ceiling has become a political battlefield as conservatives try to use the threat of a default to force their liberal colleagues to accept dramatic budget cuts, especially for social programs.
Let’s sit down together. Let’s look at the places that we can change our behavior,” McCarthy said in a US media interview earlier this week, addressing the White House. “Why would we sit back and be so arrogant to say, ‘No, there’s no waste in government?
Sputnik / ABC Flash-Point News 2023.
Can anyone highlight if the Ukraine funding and Ukraine NATO Military funding is included in this Government Debt or paid directly through covert CIA etc. Geopolitical Military channels?
If the arrogant moron US government hadn’t given billions of dollars to Nazi Ukraine, then there would not be a debt crisis! Stupid Americans! Lmao!
The US economy already went bankrupt because of the Vietnam War, that is why the gold standard was disconnected from the US Dollar, which made printing possible/
So there is not enough to pay federal employees, like policemen, firefighters, border patrol and soldiers but have hundreds of billions to send to Ukraine to guard their borders and to buy more yachts for Ukrainian politicians and generals? I see where the American priorities are.
Robbing the Veterans Funds First?