U.S. News
US Treasury activates ‘extraordinary measures’ after hitting debt limit
WHAT YOU NEED TO KNOW:
- The U.S. debt limit was reached on Thursday, prompting the Treasury Department to enact “extraordinary measures” to keep fulfilling financial obligations.
- Treasury Secretary Janet Yellen has announced a “debt issuance suspension period” from Jan. 19 to June 5.
- Yellen warned that while the measure could stave off a default until early June, the timeline is subject to much uncertainty.
The U.S. Treasury was forced to execute “extraordinary measures” to keep fulfilling the government’s financial obligations after the debt limit was reached on Thursday.
On Thursday morning, Treasury Secretary Janet Yellen wrote a letter to House Speaker Kevin McCarthy indicating a “debt issuance suspension period” will commence from Jan. 19 to June 5.
The move will suspend new investments into the Civil Service Retirement and Disability Fund, as well as the retiree health benefits fund for retired post office workers. The suspension does not affect federal retirees and employees.
Yellen said the funds will be completed again once the debt limit is increased. She warned that while some measures could stave off a default, it could only last until early June, subject to uncertainty.
The Treasury Secretary wrote, “As I stated in my January 13 letter, the period of time that extraordinary measures may last is subject to considerable uncertainty, including the challenges of forecasting the payments and receipts of the U.S. Government months into the future. I respectfully urge Congress to act promptly to protect the full faith and credit of the United States.”
Going into default would impact several programs, such as Social Security, tax refunds, and military salaries. It could also cause an economic recession.
The debt limit has been a topic of debate in Congress. Republicans have attempted to block any increase in the debt ceiling without decreasing spending, while Democrats have refused to negotiate.
Republicans have reportedly been working on a plan to prioritize payments if Congress were to fail to come to an agreement before the measures run out.
John Rizzo, former senior public affairs officer for the Treasury, called the Republicans’ plan a de-facto default. “This idea of prioritizing payments is just default by another name,” he told Yahoo Finance Live. “Having worked for Secretary Yellen I would tell people to take her seriously. She doesn’t bluff… There aren’t any magic wands or rabbits to pull out of a hat here.”
Source: Aol.com
Michael Goodson
January 21, 2023 at 6:45 am
Sending billions to Ukraine and others countries as well as entitlements programs doesn’t help.
Ray
January 21, 2023 at 7:13 am
Billions to Ukraine, billions to illegal aliens, billions to wokeness, millions to gay programs, billions for green energy, millions to fight the right to bear arms, millions to fight free speech, millions to investigate Trump, I could go on and on. Guess who will pay for this? You already know! The current socialist biden administration has screwed over the working citizens of this country.
Nam
January 21, 2023 at 9:53 am
Two things: Your list makes perfect sense to me and I would love to see it completed and added up. Please add things like eliminating the EPA, the Dept of Education and a take a real close look at the “non-essential personnel” list that gets sent home like during a govt shutdown.
American
January 21, 2023 at 11:37 am
You are spot-on! The dems target the items you’ve listed to put undue stress on the American public and then blame republicans for it. In other words, “hit ‘em where it hurts”. It is the democrat way. They will send billions to Ukraine and spend billions to support illegal invaders but stop funding social security for those who have paid into it and earned it.
Betty
January 21, 2023 at 1:05 pm
agree 100% need to roll back that 30,000 plus raise they voted themselves before Democrats loss control
EJP49
January 21, 2023 at 7:17 am
I want to know WHY!!! All the time when there is going to be NO MONEY, wether it is Dem, Rebub. or BOTH, which means politicians who CANNOT COUNT, the First ALWAYS are Military, Retirees Med Health for Post Office or Civil Service etc. And not All politicians Health plans which are BLOATED beyond Any Reasonable plan.
Ruth Sims
January 21, 2023 at 7:35 am
Well quit giving illegal social security they didn’t pay in and you just gave yourselves a $34000 raise which you do not deserve quit paying yourselves And paying $500 a night for motels for the illegals and the food they’re just throwing away because they don’t like it
David
January 21, 2023 at 8:17 am
The U S borrows money from China and then gives it back to China, Russia, Ukraine, South America and anyone who is not our allies.
We bring in the poor of the World who really doesn’t care about our country and we spend billions upon billions on them, providing everything we have taken from U S citizens.
The U S spends nearly one trillion a year in just interest payment to China. We have not made a balance payment to lower the debt limit, because we owe so much in interest. Yet our elected officials borrow more to create programs so they can be. In power and re-elected.
Get rid of the overlap in Social Program, where people have not put any effort or money to secure their future and self reliance!
John Matthew Dedon
January 21, 2023 at 10:03 am
DC and libs waste taxpayer money, need to draw line, my belief budget is 20% waste. No more borrowing period!
Uncle Art
January 21, 2023 at 10:07 am
O’ I know what to do : Take away all forms of them spending Tax Payers Money and Don’t pay them till the debt is at zero
Bob
January 21, 2023 at 10:11 am
Money to Ukraine. How about we collect the debt from ww? Russia owes us a trillion dollars from that, not to mention theft of re-engineering our aircraft. Only one country paid us for ww2 and it wasn’t England. The interest on this would pay off all our economic problems. But no, let the American people die in these wars and pay trillions in aid to the world while we suffer. No one cares for the American people. We are just taxpayers to the world
Barry
January 21, 2023 at 10:19 am
Two things: Your list makes perfect sense to me and I would love to see it completed and added up. Please add things like eliminating the EPA, the Dept of Education and a take a real close look at the “non-essential personnel” list that gets sent home like during a govt shutdown.
M Michelle Hartvigsen
January 21, 2023 at 10:30 am
Vote them out and have term limits. That is the only way to stop this kind of rampant over spending. Has our country EVER gotten any type of aide from any foreign country? That would be a huge NO!!! And do the politicians take a pay cut? Another huge NO!
Concern american
January 21, 2023 at 10:57 am
I want ALL the rich people, for instance Hunter Biden and his father Joe, who brings in and lives off 1 million per month, which is probably the interest that is made off of their assets, to live like us. Live off 3,000 or less a month and take the rest of the money and pay off the national debt. Of course I am dreaming, that will never happen, but you must admit it will solve the national debt in no time. However, the working class people have to suffer for mishandling of the debt. It’s ridiculous. The older I get the more upset I get. I am being dishearted with America.
CPO Bill
January 21, 2023 at 11:10 am
yellen is Full of Schiff! biden caused all of this Schiff!