The US Treasury Secretary is clearly warning
America will soon be bankrupt
US Treasury Secretary Janet Yellen has warned against bankruptcy. The threat is already in the summer.
US Treasury Secretary Janet Yellen has warned of a US default.
U.S. Treasury Secretary Janet Yellen (76) has warned Congress that the government may not be able to repay if the debt ceiling is temporarily raised or suspended.
“It is critical that Congress act in good time to raise or suspend the debt ceiling,” Yellen wrote in a letter to party leaders of both houses of Congress. White House spokeswoman Karine Jean-Pierre (48) warned Congress that raising the debt ceiling was not negotiable.
Threatens “irreparable damage” to global financial stability
Yellen warned that a default would cause “irreparable damage” to the U.S. economy, the livelihoods of all American citizens and global financial stability. Accordingly, the United States will reach the debt ceiling on Thursday.
Meanwhile, Yellen announced that her department would have to take “extraordinary measures” to keep the US from going bankrupt. However, such measures could postpone the problem for a maximum of six months, he warned.
Jean-Pierre insisted the White House would not negotiate on the matter. There has always been bipartisan cooperation on raising the debt ceiling “and that’s how it should be,” he said. “This should not be a political game ball.”
Bankruptcy threatens again and again
The credit limit was in previous decades It has been suspended or fired dozens of times under presidents of both parties – and with a cross-party majority.
However, some Republican MPs want to use their deal to raise the cap as bargaining chips to push for spending cuts. In November’s midterm elections, the Republican Party won a narrow majority in the House of Representatives.
If the Democratic-controlled Senate and the Republican-controlled House of Representatives cannot come to an agreement, the world’s largest economy faces bankruptcy. (AFP/euc)
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