Clock ticks, as Yellen moves the goalposts on debt crisis by five days

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For weeks, Treasury Secretary Janet Yellen declared June 1 as the likely default date for the federal government if the debt ceiling isn’t raised.

However, a lack of agreement between President Joe Biden, advocating for increased borrowing, and Republicans, who emphasize spending cuts, has prompted Yellen to adjust her stance.

On Friday, she revised the deadline, extending it to June 5, raising questions about potential political calculations influencing the decision-making process.

The impending X-date, which is the point at which the government cannot fulfill all its financial obligations, coincides with the necessity for the federal government to make $130 billion in payments that due within the first two days of June.

These due payments include contracts, payroll, and encompass entitlements, Social Security, and Medicare. Once these obligations are met, Yellen wrote in a letter to Congress that the Treasury would be left with “an extremely low level of resources.”

“During the week of June 5, Treasury is scheduled to make an estimated $92 billion of payments and transfers, including a regularly scheduled quarterly adjustment that would result in an investment in the Social Security and Medicare trust funds of roughly $36 billion. Therefore, our projected resources would be inadequate to satisfy all of these obligations,” she wrote.

President Biden and House Republicans have been engaged in negotiations aimed at finding common ground to enable the government to surpass its current borrowing capacity of $31.4 trillion.

House Republicans want $130 billion in cuts to the upcoming budget, as well as a cap on the growth of federal spending at 1% for the next 10 years. They seek requirements that those getting welfare start working at least 20 hours a week. Biden has rejected those demands. He wants only a two-year cap on spending and work requirements only for those who receive actual cash payments of welfare; he would not require food stamp recipients to engage in work.

17 COMMENTS

  1. Food for thought. If the federal budget was permanently balanced and took in $100 BILLION in excess revenue to pay off the debt it would take over 310 years to get back to zero debt. The United States earned its independence 240 years ago.

  2. Yeah! Let’s not require anyone to work for the money We the People are working to give them! Welfare to work should be a requirement!!

  3. And yet they somehow had billions and billions to send to Ukraine?? Oh wait it was to launder the cash for the Brandon crime famalia! Pay your taxes folks, Hunter needs another Lamborghini!

  4. The House Republicans hold all the power here — and, as usual, they will cave in to the Democrats’ demands.

    GOP = Seizing defeat from the jaws of victory, every time.
    That is why they are really just one false wing of the Uniparty.

  5. There is no crisis. Maybe stop spending so much money?

    But we are far beyond that sense of reason. I’m sure in the end, one way or another, they will print more money. It works until it doesn’t, and we are close(r) to the doesn’t part. What did Hemingway say? “Gradually, then suddenly.”

  6. Maybe social security and Medicare wouldn’t be in trouble if the federal government hadn’t taken and spent all the cash they forced out of us in return for those Full Faith and Credit U.S. debt instruments.

  7. All you people with 40 percent lung capacity get jobs for 20 hours a week. The ones who can’t even grocery shop, the ones who have no grip strength and drop everything, get a job. The ones on oxygen. The ones who have to call an ambulance who get stuck on stairs and collapse; get a job. That makes sense doesn’t it democrats. .

  8. Give their social security to the US invaders; right democrats? Give the invaders the $5000 a month checks from ss funds collected from Americans.
    That will teach Americans with their high falutin liberty ideas. Not even kidding. They are ruining the country and enjoying it immensely feel free to affirm this democrats; speak up sweeties.

  9. Biden drops the ball in Afghanistan but then immediately launches a proxy war with Russia at a much higher cost with zero accountability for the spending. Thats like giving Hunter a no limit credit card. His big job at Burisma was too much stress for him so now we have to repay them for being so generous to poor hunter who has to pay child support. It simply isnt fair for him to suffer without free money. As far as Janet Yellin goes when she starts Yellin I stop listnen. Nothing she has ever said even resembles the truth just as when dementia Joe starts babbling nonsense. If Joe needs more money its time to pimp out his son Hunter some more. Give the middle east a try Joe. Hunter will like Dubai!

  10. My production is the republicans will give in and sell the farm. They will do the usual lie to the voters and fade every time. The voters need to know it’s the taxpayer against the rich and powerful politicians. Look everybody they are all on the same team because if not they would hold grown and let’s see if the other side will cave. We are already broke so what if we default the world is in the process of changing our dollars for a controlled bit coin operation and guess who makes the rules?
    Maybe some day when it’s crashed we will say I told you so.

  11. Don’t forget this FY budget for the DoD is well over $800 billion, full of bloat, price gouging and little oversight of the few companies that make and supply the military for our weapons systems. It’s the least capitalistic aspect of our country and yet it’s the most sacrosanct part of the government that nobody is willing to look at to save taxpayers dollars.

  12. China use to own 5 Trillion of our Treasurey Notes, now they only own 1 Trillion. No body is buying Our Treasurey Notes anymore. The Fed Prints them and gives them to banks to lend out, but it is too hard and slow for the bankers to make money the Old Fashion way so they invest it in the Stock, and the very Volital Commodities Markets..The Full Faith and Credit of the 35 Trillion Dollar Deficit rests on The shoulders of WORKING AMERICAN’S with PRODUCTIVE JOBS. The 5 BRICS Nations will soon be the 25 BRICS NATIONS. They plan to unleash their new BRICS Dollar in the near future. It will be backed with GOLD. Bye bye Greenback Reserve Currency Dollar hello BRICS BUCKS..By 2028 the migration pattern will be towards Mexico, one of the newer BRICS Nations. The .migrants will be chasing opportunity, because none will be found here..Obama and the Democrats and RINOS will have transformed the USA. It will look like Detroit, Chicago, Baltimore or Philly. Unions and Democrats will rule over a pile of rubble of their own making. MAGA people will be treated like Ted Stevens, or 1—6ers. Thanks Mary, Lisa, Mark, Dan. Oh and on the State side of disaster—-our coalition caucus. The Caucus bought with UNION money

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