The federal government has come up against its borrowing limit of more than $38.3 trillion, Treasury Secretary Janet Yellen announced Thursday, setting up an-early June fight to avoid a potential US default, the NY Post reports.
In a letter to House Speaker Kevin McCarthy (R-Calif.), Yellen said the Treasury had begun “extraordinary measures” to avoid breaching the limit and keep normal government operations going through June 5. However, Yellen added that “the period of time that extraordinary measures may last is subject to considerable uncertainty … I respectfully urge Congress to act promptly to protect the full faith and credit of the United States.”
House Republicans have demanded cuts in spending in exchange for increasing the debt ceiling, as has been done approximately 80 times since the 1960s. However, the Biden administration has flatly refused to consider any reductions.
I think it would be the most wonderful thing for the US government to shut down. The Republicans are unfortunately too chicken-hearted to go that route. But if it did happen, at least two good things would occur: the Dems would be forced to capitulate, and in a bigger way than before the shutdown (since the hopefully inspired GOP would increase their spending cuts demands once the government is shut down and the Dems are in panic mode); and the citizens of the US would “discover” how little it matters if the government is shut down! The few things all the trillions spent accomplish that actually improve anything will be far outweighed by the many that harm or destroy.
Imagine: No money for public education — what a blessing! No “climate change” programs — how utterly refreshing! No armed FBI raids of conservative homes with 6-7 children whose parents are actively pro-life — what a relief!
Need I go on?