Yellen outlines to Congress emergency measures on debt limit

[Omaha Steve]

Source: AP

By MARTIN CRUTSINGER and ALAN FRAM

WASHINGTON (AP) — Treasury Secretary Janet Yellen told Congress on Friday that she will start taking emergency measures next week to keep the government from an unprecedented default on the national debt, warning that a default would cause “irreparable harm to the U.S. economy and the livelihoods of all Americans.”

In a letter to House and Senate leaders, Yellen said her actions will buy time until Congress can pass legislation to either raise the debt limit or suspend it again for a period of time.

The debt limit has been suspended for the past two years but will go back into effect on July 31. The total debt subject to the limit currently stands at $28.4 trillion.

Yellen said her first move on July 30 will be to suspend the sale of state and local government securities, which are used by some local jurisdictions to meet some of their financing needs but increase the level of debt held by the federal government.



FILE - In this July 12, 2021 file photo, U.S. Treasury Secretary Janet Yellen prepares to speak during a meeting of eurogroup finance ministers at the European Council building in Brussels. Yellen told Congress on Friday, July 23, that she will start taking emergency measures next week to keep the government from an unprecedented default on the national debt. (AP Photo/Virginia Mayo, File)


Read more: https://apnews.com/article/lifestyle-business-government-and-politics-fe979c9a1ad0d33fbbae8a9c752449ba

[GB_RN]

1. Just. Eliminate. It. Already!

Make it part of reconciliation and eliminate the debt limit.

[Bayard]

2. You know its all those spendthrift Democrats fault!

Handing out all those free vaccinations! Giving money and food to poor people!

[James48]

3. Federal employee retirement "G Fund"

Is suspended soon. Likely the same time- July 30.

[Ramsey Barner]

4. Seems like a smart move politically

to suspend the sale of state and local government securities. Local governments will feel the pinch and may undermine the R's inevitable threat to shut down the federal government.

[Yo_Mama_Been_Loggin]

5. Moscow Mitch playing chicken with the economy

[cstanleytech]

6. Moscow Mitch and the other Republicans would destroy the American economy and smile while doing it

as long as it leads to them gaining more power as that is all they care about.

[mbmsr]

7. The republicans will rise debt cellling they probably wait until the last minute but if risk the

full faith and credit of the U.S. government. If that were to happen the entire world economy would collapse, so even there rich buddies would lose everything who they really care about!