WASHINGTON — On the brink of hitting the nation's legal borrowing limit on Thursday, the government is resorting to"extraordinary measures" to avoid a default.But — take a breath — the phrase technically refers to a bunch of accounting workarounds. Yes, accounting.
People are also reading… National Biden-McConnell: Personally mismatched, professionally bound What could be worrisome is not the existence of extraordinary measures, but what happens if they are exhausted this summer without a deal in place. Economists have warned that could lead to a global financial crisis.WHAT ARE"EXTRAORDINARY MEASURES"?Yellen's Friday letter listed two measures that will begin this month in order to prevent the government from defaulting.
Because these are retirement accounts, no one is harmed by the government equivalent of an IOU. The funds are made whole after a debt ceiling increase or suspension becomes law. It's not necessarily the measures that can harm the economy but rather the doubts among consumers and businesses about whether lawmakers will increase the borrowing cap.
McCarthy said Tuesday that talks should begin immediately on the potential spending cuts that Republicans are seeking in exchange for raising the debt limit, even though the Biden administration has equated that demand to holding the U.S. economy hostage.
Hi. It’s not Biden’s responsibility to raise the debt ceiling. It’s congress’ and Republicans have the majority. Also: 25% of our debt was generated by the Trump admin. Cut the crap.