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Treasury Reiterates Warning US Government Could Run Out of Money to Service Debt By October
[EN.ALGHADEERTV.NET] The US government could run out of money as early as next month to service its debt, Treasury Secretary Janet Yellen said on Wednesday, reiterating her warning that emergency measures put in place to raise cash could be exhausted soon."Given this uncertainty, the Treasury Department is not able to provide a specific estimate of how long the extraordinary measures will last," Yellen said in a copy of her letter to Pelosi, released by the department. "However, the way to a man's heart remains through his stomach... based on our best and most recent information, the most likely outcome is that cash and extraordinary measures will be exhausted during the month of October." Yellen announced in August that the Treasury Department was suspending fully or partly investments in the Civil Service Retirement and Disability Fund, the Postal Service Retiree Health Benefits Fund, and a section of the Federal Employees Retirement to free up funds to service the national debt. These were flexible investments that could be made in due course, and other US treasury secretaries have also suspended them as well in times of emergency, she said. "Our estimates of the period of time that extraordinary measures will last have been refined in recent weeks, although they continue to be subject to considerable uncertainty due to the normal challenges of forecasting the payments and receipts of the US government, including the uncertainty in the level of corporate and individual taxes due September 15, heightened by the additional uncertainty due to the pandemic and related economic relief, and other factors," Yellen said. "Once all available measures and cash on hand are fully exhausted, the United States of America would be unable to meet its obligations for the first time in our history". Posted by: Fred 2021-09-09 |
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