The US Government WILL pay EVERY Bill.…
IT HAS NEVER ‘Defaulted on paying it’s bill’s…..
(It actaully prints the money and can/does borrow anytime so WTF is there a Debt Ceiling in the first place?)
Please disreagard ALL the media screaming ….
It’s just Bull Shit…..
All the noise from Treasuy Sec. Yellen is just part of the dance BOTH President Biden and House Speaker McCarthy need to get the votes for the final budget deal going forward that will allow both guys to get the Debt Ceiling RAISED….(It HAS been since January technically)
The whole thing may arrive on Biden’s desk by June 5th or a few days afterwards and Yellen WILL pay the bills….
It does appear the actual fine print is FAR from settled…..
This is like a weather man standing on a windy beach before a storm hits….
Since the United States hit its $31.4 trillion debt limit in January, Treasury officials have used accounting maneuvers to stretch government revenue. Once those measures are exhausted, Treasury would try to avoid default by paying bondholders before anyone else, according to the transcript of a 2013 Federal Reserve conference call.
Auctions of new short-term T-bills hopefully would bring in enough money to cover principal and interest payments on maturing debt, so long as other government obligations — to Social Security recipients, government employees and veterans — went unpaid.
“It’ll be not the bond market that feels it at first. It’ll be people owed salaries or other payments by the government,” said Rob Haworth, senior investment strategist for U.S. Bank Wealth Management in Seattle.
That strategy could allow the government to dodge a default. But rating agencies would probably downgrade the United States’ creditworthiness, a move that would raise the government’s borrowing costs and boost the interest rates that consumers pay on credit card balances, auto loans and mortgages…
…
If a default occurs, Washington and Wall Street would aim to operate as close to business-as-usual as possible.
“I don’t think we’d even get to the point where we’d be defaulting,” said Nathan Sheets, chief economist at Citigroup and undersecretary of treasury for international affairs in the Obama administration. “I think we could go for quite a long period and still be able to avoid a default.”….
…
Still, William Foster, senior vice president for Moody’s sovereign risk group, said he expects any default to end quickly.
“It would be very short-lived. Just a few days,” he said. “There’d be enough political pressure and market fallout that lawmakers would quickly come to an agreement to resolve the issue.”….
Note….
Does ANYBODY think the US Govt. is gonna pay Bond Holders and NOT pay Social Security Checks?
Manu Raju
@mkraju
Hakeem Jeffries won’t say on CNN if House Dems can deliver the votes to offset GOP defections on any debt limit deal cut by Biden and McCarthy. Says part of the challenge is that it’s “unclear how many votes House Republicans can produce.”
Manu Raju
@mkraju
Debt limit negotiations bw House GOP-WH continued til 230am.
– Still trying to get an agreement on a handful of outstanding items
– Goal is to announce deal today and then have bill text ready. Then will need to whip votes
– Deal is “hours or days away,” McHenry says this AM
Breaking
Biden and McCarthy think they have a tentative ‘deal’