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Tuesday, March 21, 2023

Treasury Secretary Warns of America’s Oncoming Economic Collapse

Janet Yellen, the secretary of the US Treasury Department, warned of the economic and financial collapse of her country due to a default on the public debt.

The secretary claims that a debt default could trigger “economic and financial carnage.” This is said in a hearing before the Committee on Ways and Means, this is the main tax-making office of the United States House of Representatives.

Another intention made by Janet Yellen, indicates that not increasing the debt limit of the federal government, 31.4 trillion dollars, “threatens the economic development of the country”. Faced with this situation, he asked to raise the federal debt ceiling without conditions.

“I call on all members of Congress to address the debt limit, without conditions and without delay until the last minute,” he said.

In the hearing, Yellen was asked by the audience if they could prioritize debt payments in the allocation of cash resources, as one of the measures taken by the country, Janet Yellen replied, “it is not a solution to the problem of the debt ceiling.” .

Noting, however, that “the priority is not simply to pay off the debt of the entire legislative government with time. That is what we have not done since 1789. And this is just a bad debt by another name,” he added.

Faced with the situation, Yellen said that one of the solutions proposed by the senior official is for the United States to pay its bills on time, thus avoiding the overwhelming increase in interest rates.

“If we don’t do this and think it’s short-term to avoid economic chaos, we’re deceiving ourselves, because not paying government bills will lead to economic and financial collapse,” he said.

Also, Republican groups have demanded concessions from President Joe Biden in exchange for paying off the debt ceiling.

Finally, a senior official pointed out that the Treasury Department will start taking extraordinary measures to meet its obligations after reaching its due date.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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