Hideo Nakamura Janet Yellen, the U.S. Treasury Secretary, recently said that if Congress doesn’t increase or delay their debt limit by June 5th, the government won’t have enough money to pay its debts.
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Treasury Secretary Janet Yellen recently said that, according to recent data, the U.S. will become unable to pay its debts if Congress doesn’t raise or suspend the debt limit by June 5th.
At the start of June, Treasury officials will be taking out more than $130 billion from their resources to pay veterans, Social Security and Medicare recipients. This means that not much money will be left for other purposes.
At the start of June 5, there will be $92 billion worth of payments and transfers that need to be made. That includes adding around $36 billion into Social Security and Medicare trust funds. The money we’ll have wouldn’t be enough to cover everything that needs to be done so the Secretary of Treasury had to step in.
Janet Yellen said the US government will not be able to pay its bills by June 1. The Congressional Budget Office (CBO) thinks this could cause a US default sometime during the first two weeks of June. Goldman Sachs believes that the US might have to default around June 8-9.
The U.S. government is counting on people to pay their taxes by June 15. However, Yellen has said that it is unlikely they will be able to collect all the payments in time.
A lot of people have voiced their worries about what will happen if the U.S. misses a payment to who it owes money, and said that it would be really bad. The person in charge at the International Monetary Fund (IMF) expects damaging results, and an expert from Harvard University said it could cause a worldwide economic crisis.
Do you have an opinion on the new timeline that U.S. Treasury Secretary Janet Yellen proposed about when the United States might not be able to pay all its debts? If you do, please share it in the comments section below!
