US needs debt, state treasury runs out October 18, 2021
The United States is in danger of running out of cash on October 18, 2021. The news was revealed directly by the Secretary of the Treasury Janet Yellen.
The US must then immediately raise the debt ceiling, otherwise they will experience a default (default). The impact on markets and the economy is predicted to be very serious.
So far, Yellen has taken "extraordinary measures" to bog down the budget, but they won't last long.
"We now estimate the Treasury will very likely run out of 'extraordinary measures' if Congress does not act to raise or suspend the debt limit by October 18," Janet Yellen wrote in a letter to the US House of Representatives. .
Postponing the debt limit means giving the Ministry of Finance the freedom to increase debt. After October 18, Janet Yellen wasn't sure how the US would pay its debts.
The state treasurer also said that if the debt limit issue is not addressed immediately, the impact will be serious on business and consumer confidence, increase the cost of borrowing for the public, and worsen the US credit rating in the years to come.
"Failure to act immediately could also result in substantial disruption to financial markets, as it increases uncertainty that exacerbates volatility and erodes investor confidence," Yellen said.
Deadlock in the Senate
The Democrats and Republicans have yet to agree on raising the debt ceiling.
It takes a majority vote in the Senate for that to happen. The Democrats currently control the Senate, but they still need 10 Republican senators' votes for the country's debt ceiling to rise.
Senator Chuck Schumer, who became the leader of the Democratic Party in the Senate, accused Republicans of playing with fire. The Republican Party's maneuvers are said to be detrimental to the American people.
"It's playing with fire. Playing with the debt ceiling is playing with fire and putting it on the backs of the American people," explained Senator Schumer.
Republicans rumus menghitung angka togel sgp reject the discourse of raising the debt ceiling. Senator Mitch McConnell, who is the party's leading figure, said Democrats had to come up with ideas for their proposal to pass.
"They have the House, the Senate, and the presidency. It's their responsibility to govern," Senator McConnell told The Washington Post, quoted Friday (24/9).
A refusal from Senator McConnell could result in a government shutdown. The reason is, the Democratic Party is maneuvering by tying the debt increase proposal to the government budget.