via redwave.press:
The U.S. government will have to default on some payments if Congress fails to raise the national debt ceiling before June, Treasury Secretary Janet Yellen said.
“If Congress fails to do that, it really impairs our credit rating. We have to default on some obligation, whether it’s Treasuries or payments to Social Security recipients,” Yellen said on Friday in an interview with Bloomberg.
“That’s something America hasn’t done since 1789,” she continued, referring to a time when the new-born United States failed to pay back money it borrowed to finance the war against the British Empire. “And we shouldn’t start now. So we’ve not discussed what to do.”
We are being warned that there could be some real serious economic doom at the beginning of next month if the Democrats and the Republicans cannot agree on a deal to raise the debt ceiling.
Experts are telling us that the stock market will crash, the economy will immediately plunge into a recession, and tens of millions of Americans will not get their Social Security payments. Treasury Secretary Janet Yellen says that a U.S. debt default would begin somewhere around June 1st.
She can’t nail down the date precisely, because there is some uncertainty regarding how much tax money will come in over the next few weeks. But what is exceedingly clear is that time is very short, and there are only four days when the House and the Senate are both scheduled to be in session before June 1st. So the clock is ticking, and right now both sides are still far apart on any sort of a deal.