Yellen — Treasury will begin ‘extraordinary measures’ to avoid U.S. default.

[DonGlock26]

Yellen: US will hit debt ceiling in mid- or late-January

The limit has been suspended since June 2023



Treasury Secretary Janet Yellen said Friday she expects the U.S. will officially run up against its borrowing limit in mid- to late-January, starting the clock on a major fiscal challenge facing President-elect Donald Trump in his first months in office.

“Treasury currently expects to reach the new limit between January 14 and January 23, at which time it will be necessary for Treasury to start taking extraordinary measures,” Yellen wrote in a letter to congressional leadership.

The debt limit has been suspended since June 2023 when Congress passed a bipartisan deal reached between then-House Speaker Kevin McCarthy and President Joe Biden. Under that law, the limit on Treasury’s ability to issue debt to cover the nation’s bills returns on Jan. 2.

https://www.politico.com/live-updates/2024/12/27/congress/yellen-sees-u-s-hitting-debt-ceiling-in-early-2025-00196091

We could sell the 51st state to India and put the Panama Canal on the market. Just a thought.

 

[SassyIrishLass]

Both parties are to blame. Spending has to be cut. It's not sustainable

 

[Woodznutz]

Raise taxes and cut spending. It's the only way.

 

[westwall]

Raise taxes and cut spending. It's the only way.

Nope, cut spending, and allow the economy to blossom. We can grow our way out of it.

Tax increases will stifle growth.

 

[Woodznutz]

Nope, cut spending, and allow the economy to blossom. We can grow our way out of it.

Tax increases will stifle growth.

Our economy is a house of cards built on a foundation of sand as it is.
We have debts to pay. We need more maintenance and repair, especially in the social sector, not runaway consumer growth. Higher taxes don't suppress corporate growth as they pay little in taxes anyway.

 

[westwall]

We have debts to pay. We need more maintenance and repair, especially in the social sector, not runaway consumer growth. Higher taxes don't suppress corporate growth as they pay little in taxes anyway.

Yes, we do. Growth is the only way to actually pay those debts down.

 

[jwoodie]

We could sell the 51st state to India and put the Panama Canal on the market. Just a thought.

View attachment 1058791

One reason Trump wanted the debt ceiling lifted was to avoid more Democrat shenanigans before he is sworn in. Instead, the GOP "hardliners" stupidly opposed it without realizing that it simply gave Yellen & Co. more opportunities to sabotage the economy.

 

[toobfreak]

Yellen said Friday she expects the U.S. will officially run up against its borrowing limit in mid- to late-January

So Joe is leaving office with the country bankrupt.
Trump only takes office late January so can't blame it on him.
The dirty secret is that the USA has no borrowing limit.
Bet Joe wishes now he had back all the hundreds of billions he has given away to Ukraine and Angola. Just was just giving it away the other week, now he finds out he's broke?

starting the clock on a major fiscal challenge facing President-elect Donald Trump

No problem, just eliminate a half dozen useless federal agencies and cut the budgets on the rest.

 

[Woodznutz]

Yes, we do. Growth is the only way to actually pay those debts down.

The economy isn't growing fast enough to keep up with the mounting debt. Revenues have to be reallocated. Cuts in programs can be used to pay down debt. SNAP for example can be cut by 20 percent without negatively impacting those who receive it. That 20 percent, $25 Billion, can be used to retire debt. Much consumer spending takes place in the upper middle class income brackets. That group can be taxed more without impacting their standard of living at all.

Most importantly is the fact that new debt is created with economic growth. Much of it winds up as a part of the national debt. So economic growth has its downside.

 

[westwall]

Sorry, but the economy isn't growing fast enough to keep up with the mounting debt. Revenues have to be reallocated. Cuts in programs can be used to pay down debt. SNAP for example can be cut by 20 percent without negatively impacting those who receive it. That 20 percent can be used to retire debt. Much consumer spending takes place in the upper middle class income brackets. That group can be taxed more without impacting their standard of living at all.

Most importantly is the fact that new debt is created with economic growth. Much of it winds up as a part of the national debt.

I agree. Government is stifling it. Remove the government overreach, and keep taxes low and the growth will come.

Taxes will kill the growth.

 

[Mikeoxenormous]

Raise taxes and cut spending. It's the only way.

How about cut the government by 50%, stop paying people to sit on their ass and collect a paycheck, that would give US a 1.5 trillion dollar surplus, plus more revenue coming in by those working and we could pay down the debt in around 20 years.