Thursday 19 January The US debt has reached its limit – $31.4 trillion dollar. Technically, the locker shouldn’t be allowed to issue bondswhich is used to finance government spending. To avoid this, Treasury Secretary Janet Yellen implemented emergency measures CNN.
The United States is on the verge of bankruptcy. Only emergency measures save them
Thanks to Yilin’s actions, the citizens shouldn’t feel the effects of the cap right now.
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Yellen plans to sell the assets and suspend investment in the fund the retirement, in a box for people with disabilities, as well as in a box for postal health benefits. In addition, it suspended investments from the federal employee retirement plan. All of these funds are included in religion. Thus, suspending it would reduce the limit and give the government the opportunity to finance its projects.
The emergency measures implemented by Yellen are set to remain in effect until June 5. When Congress reaches an agreement, the outstanding funds must be returned.
In fact, this is the money that the government owes itself. The government promised to pay it back. The only reason why it is deadlocked is because of the debt limit
said Stephen Pressman, professor of economics at The New School. As he made clear, the United States is therefore not directly threatened calamity economic.
This is the second such incident in two years. Extraordinary measures were taken in the second half of 2021. Then Congress raised the debt limit and averted the crisis.
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