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This just in: U.S. will begin ‘extraordinary measures’ to stay under debt limit

cigaretteman

HR King
May 29, 2001
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The Treasury Department on Friday said that it will begin “extraordinary measures” next week to prevent the U.S. government from defaulting on its payment obligations, as lawmakers in Washington prepare for a potentially devastating fiscal showdown.
As Jeff Stein and Tony Romm report, Treasury Secretary Janet L. Yellen, in a letter to congressional officials, said the administration would begin repurposing federal funds on Jan. 19 to extend the date by which the government will run out of money. Congress must pass a law raising the debt limit from its current $31.4 trillion or the Treasury can’t borrow anymore, even to pay for spending lawmakers have already authorized.
“The use of extraordinary measures enables the government to meet its obligations for only a limited amount of time,” Yellen said in a letter to congressional leaders. “It is therefore critical that Congress act in a timely manner to increase or suspend the debt limit. Failure to meet the government’s obligations would cause irreparable harm to the U.S. economy, the livelihoods of all Americans, and global financial stability.”
The United States has never defaulted on its debt in its history, and economists warn that doing so could trigger a panic on Wall Street and lead to millions of job losses. Many leading Republican lawmakers are demanding that their new House majority use the debt limit as leverage to force the Biden administration to accept sweeping spending cuts that Democrats oppose, creating an impasse with no clear resolution at hand.
Of the extraordinary measures typically invoked by Treasury, the biggest consists of not reinvesting government funds in a retirement program for federal employees and military personnel. Treasury has done this during previous standoffs, and it makes the fund whole after the impasse has been resolved.
Read more on Yellen’s announcement here.
 
I always love when they play chicken with driving the economy off a cliff….it’s my favorite event.

Instead of managing the debt by increasing revenue and cutting spending like any normal American household would….it’s better to threaten to drive it off the cliff for political points.
 
I always love when they play chicken with driving the economy off a cliff….it’s my favorite event.

Instead of managing the debt by increasing revenue and cutting spending like any normal American household would….it’s better to threaten to drive it off the cliff for political points.
It’s a double edged sword.

Raise the specter of a calamitous default to raise the debt ceiling and then proceed to spend like a bunch of drunk sailors in Manila.

Rinse and repeat.
 
In my lifetime, our Federal Government has never been hampered by a lack of revenue, it has created this 31 trillion dollar deficit from lack of foresight and willpower to say “no” on the spending side. I’m not sure where the inflection point is on our ability to service the debt load but it has to be approaching soon.
 
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I always love when they play chicken with driving the economy off a cliff….it’s my favorite event.

Instead of managing the debt by increasing revenue and cutting spending like any normal American household would….it’s better to threaten to drive it off the cliff for political points.
No, its if you won't do your job, we will do ours. You see, we always pay our debts that both sides accumulated.
 
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I hope there are enough sensible reps in the house to withstand the pressure from the wacko brigade. These idiots always conveniently leave out the fact that this isn't new "spending", it's paying for what's already been authorized in bills previously passed.
I'm afraid there might be enough wackos to drive us off the cliff this time.
 
I hope there are enough sensible reps in the house to withstand the pressure from the wacko brigade. These idiots always conveniently leave out the fact that this isn't new "spending", it's paying for what's already been authorized in bills previously passed.
I'm afraid there might be enough wackos to drive us off the cliff this time.


We have hit the debt limit. We have until June - employing "extraordinary measures" - before the US defaults. And the House crazies are driving the f'n bus thanks to McCarthy. He gave them three seats on the Rules Committee which means they could prevent ANY legislation that doesn't meet their needs from reaching the floor. That means any bipartisan agreement to end the stalemate has to get past them.
 
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