We

 

might not even need the FED to screw things up any more for us.

U.S. will hit its debt limit Thursday, start taking steps to avoid default, Yellen warns Congress

Treasury Secretary Janet Yellen notified Congress that the U.S. will reach its statutory debt limit next Thursday, and asked House Speaker Kevin McCarthy to either suspend or increase the debt limit.

Yellen wrote that the Treasury Department will begin “taking certain extraordinary measures to prevent the United States from defaulting on its obligations.”:

She told McCarthy, “It is unlikely that cash and extraordinary measures will be exhausted before early June.”

“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,” Yellen warned.

(We default?

"global financial stability"

 is over 

for a while...

A good while...)

"Yellen’s letter effectively starts a clock counting down how long the federal government can continue to make interest payments on its debt."

(It's just the interest payment folks...)

"What Republicans have failed to say, however, is that, unlike a household that defaults on its debt, a U.S. government default would have massive repercussions around the world."

"A default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, the research firm Moody’s Analytics warned in a September 2021 report."

(That seems a lil rosy if you ask me...)

"At the time, Moody’s also projected a 4% decline in gross domestic product and the loss of nearly 6 million jobs if the U.S. defaulted."

(That was then...a lot has changed since then...)

"In her letter to McCarthy on Friday, Yellen wrote, “Indeed, in the past, even threats that the U.S. government might fail to meet its obligations have caused real harms, including the only credit rating downgrade in the history of our nation in 2011.”

"Yellen added: “Increasing or suspending the debt limit does not authorize new spending commitments or cost taxpayers money. It simply allows the government to finance existing legal obligations that Congresses and Presidents of both parties have made in the past.”

(How much longer do you think we can really kick this can down the road?)