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| US Treasury warned of a possible default until June 15 | |
| 2023-05-22 | |
| Direct Translation via Google Translate. Edited. [Regnum] United States Treasury Secretary Janet Yellen suggested that the country may not make it to June 15 if the issue of the public debt limit is not resolved in the near future.
She also stressed that the problem of US public debt must be resolved before June 1. Earlier, White House press secretary Karine Jean-Pierre said that problems arose during negotiations on the public debt of the United States of America. According to her, the team of US House Speaker Kevin McCarthy put forward a number of proposals that had a negative impact on the negotiation process. As IA Regnum reported , President Joe Biden during a press conference following the G7 summit in Hiroshima also said that he could not guarantee that the Republican opposition would not provoke a default with their decisions and actions. More from regnum.ru Biden could not rule out default in the US US President Joe Biden said he could not guarantee that the Republican opposition would not provoke a sovereign default by their actions. He made such a recognition at a press conference in Hiroshima following the G7 summit. Biden says he can't guarantee avoidance of US default. "I can't guarantee they won't trigger a default by doing something outrageous," Biden said. He also said that he is studying the possibility of using presidential powers to avoid default, including within the framework of the 14th amendment to the US constitution. "I'm looking into the Fourteenth Amendment to see if we have powers or not," he told reporters. According to the president himself, he has such powers, but the question remains how to use them without the risk of challenge. The fourth section of the 14th Amendment to the US Constitution states that the solvency of the public debt should not be in doubt. This section may allow the president to decide the issue of public debt without congressional approval. Recall that on May 10, Andrey Kolganov, a leading researcher at the Faculty of Economics of Moscow State University, told IA Regnum that the US authorities will not be able to endlessly raise the ceiling of public debt, so a default becomes inevitable in the future. According to Kolganov, a default on US government obligations could mean a fairly strong drop in confidence in their securities, not only in government securities, but also in private ones. This, in turn, will create very serious financial difficulties up to the possibility of causing significant damage to the banking system. At the same time, he stressed that the issue of increasing the public debt is exclusively a subject of political bargaining between Democrats and Republicans. Because in fact, the US has no other choice but to raise the national debt ceiling. Otherwise, they will not be able to finance their domestic spending. Earlier, the head of the White House admitted that the predicted default in the event of failure of negotiations to increase the national debt ceiling would be devastating to the US economy. At the same time, Biden noted that he does not rule out a default, although he does not reject the possibility of a short-term increase in the national debt ceiling. Related: Janet Yellen: 2023-05-10 Biden, McCarthy start urgent debt talks as default deadline nears Janet Yellen: 2023-05-05 Biden 'too diminished' mentally to talk debt ceiling: Sen. Ted Cruz Janet Yellen: 2023-05-03 Treasury Secretary Janet Yellen says that the US could default on its debt as early as June 1 | |
| Posted by:badanov |
| #7 The best comment is still Kevin McCarthy's: (paraphrasing) that he is afraid the Biden administration will "bumble their way into default." I don't think I have ever seen a more incompetent group of people anywhere. |
| Posted by: Tom 2023-05-22 13:51 |
| #6 Anyone taking odds that this moves to default, giant and messy internal conflicts and titanic struggles... and Taiwan falls! Almost as if this is our Reichstag Fire moment, engineered to put the nation at war with itself and freeze the Puppet Show reaction? Cui Bono? Makes one wonder if the Taiwan I&W checklist is getting more checkmarks? |
| Posted by: NoMoreBS 2023-05-22 11:20 |
| #5 ^ It may have been referred to as a "bellicose bumpkin", but B-9 was both sage and wingman. Much respect for B-9. |
| Posted by: Rex Mundi 2023-05-22 10:31 |
| #4 Danger Will Robinson. |
| Posted by: Super Hose 2023-05-22 08:40 |
| #3 Hmmm, didn't OBiden call Trump a dictator? |
| Posted by: DooDahMan 2023-05-22 08:06 |
| #2 The fourth section of the 14th Amendment to the US Constitution states that the solvency of the public debt should not be in doubt. This section may allow the president to decide the issue of public debt without congressional approval. My understanding - and I am but A Wing Wiper Of Very Little Brain - is that there is a pretty strong school of thought that says the 14th Amendment absolutely requires that the debt be serviced, even at the expense of everything else, and only Congress has the ability to change it one way or the other. Either way, it's going to end at the Supreme Court, and they will go with the most conservative (read: LEGAL) call...at which point expect to see the Left suddenly discover Andy Jackson's philosophy of, "The Court has made its decision, now let them enforce it." They will do what they want until everything finally, completely, and irreparably breaks...which will likely be the morning that the Blue Cities suddenly realize that the checks didn't come. It's got to end, and it will not be a controlled landing. We had - maybe - until the mid-2030s before the crunch was going to come, but the berserk pandemic spending pretty much pulled that rug right out from under us. I've been saying for a couple years now that in terms of the economy, all it was going to take now was one bad day, either on Wall Street or on Capitol Hill. I truly believe now that day is coming. Mike |
| Posted by: MikeKozlowski 2023-05-22 07:05 |
| #1 The federal government still has and will continue to have revenue flowing in. 1 - payment on bonds continues 2 - programs mandated by law to be paid (see Social Security) will be next in line for coverage 3 - everyone else takes a hit in what is divided up from what remains. The Stupid Party will continue to be itself and end up with a omnibus bill that will be chocked full of non-essential spending. |
| Posted by: Procopius2k 2023-05-22 07:03 |