Treasury Secretary Janet Yellen Says The USA Will Be in Debt Default in Jan 2025 - Unless...

Friday, December 27, 2024

Is this just another boogie-man hysteria episode (like authorities did with Covid-19), or is the United States really about to hit it's borrowing limit...aka "debt ceiling", and go into default?...

Treasury Secretary Janet Yellen warned congressional leaders Friday that the federal government will hit its debt limit as early as Jan. 14 unless Congress takes action, or her department implements “extraordinary measures” to avoid default.

Yellen’s letter indicates that the looming debt ceiling fight involving Congress and the new administration is likely to take place in the early months of next year.

“Treasury currently expects to reach the new limit between January 14 and January 23, at which time it will be necessary for Treasury to start taking extraordinary measures,” Yellen wrote in her letter, addressed to House Speaker Mike Johnson, R-La.

“I respectfully urge Congress to act to protect the full faith and credit of the United States,” Yellen added.

More at: www.nbcnews.com...

I'm old enough to remember many warnings related to the U.S. deficit, and also reaching our borrowing limit. The alarm bells rang loudly across the news media when President Ronald Reagan exploded the deficit from $70 Billion to $175 Billion over his two terms. Now we're at $1.8 Trillion, and American life continues to hum along.

WHY does a country who can print it's own currency, need to BORROW money? Nobody has ever explained this in a simple, logical manner.

-WeMustCare 😎

a reply to: WeMustCare

You mean like the huge Japanese national debt?

When people say "Japan borrows money from itself," they mean that the majority of Japan's government debt is held by domestic entities within Japan, like banks, insurance companies, and citizens, rather than by foreign investors, effectively meaning the Japanese government is borrowing money from its own population.

The "debt ceiling" is one of those US checks and balances designed to keep the budget at least under review by both House and Senate. Otherwise we might have huge wasteful spending without auditing.

a reply to: Skinnerbot

Senator Rand Paul published a report last week showing $1 TRILLION in government waste for 2024.

""U.S. Senator Rand Paul, R-Ky., has released his annual “Festivus Report” laying out how the federal government wasted over $1 trillion in 2024 alone.

“The Festivus Report 2024” is Sen. Paul’s 10th annual report; it found the government wasted $1,008,313,329,626.12 this year.""

Source: dailycitizen.focusonthefamily.com...
😨

Yet they keep kicking the can down the road with CR’s on the gov budget. Makes a whole lot of sense….not

They just like to fear monger, Gov shut down threats and Threat of Default, oh no!

Keep the printing press running with magical numbers.

a reply to: WeMustCare

Well yes but he is cutting stuff that other members of Congress feel is important out of his budget proposal and calling it waste.

Aid to Egypt for example and high deductibles for Medicare.

"Medicare is socialized medicine," and one way to control medical costs would be to impose a $2,000 deductible in the program.

originally posted by: 38181
Yet they keep kicking the can down the road with CR’s on the gov budget. Makes a whole lot of sense….not

They just like to fear monger, Gov shut down threats and Threat of Default, oh no!

Keep the printing press running with magical numbers.

No doubt the USA may be in serious trouble at some point. But you're saying that point is still far over the distant horizon? I hope you're right.
🤞🏽

a reply to: WeMustCare

Well, if the economy collapses, those that invested in our government will lose their money...not the government itself. It is a way to protect our nation from scavengers. Most of the debt is not really secured, but remember, we only lease our property, if we do not pay taxes it becomes property of the government which means they can use our property as collateral to pay off other nations that lent money to us. As far as our US bonds we own, Ha Ha....they are not going to waste their time paying us off when our nation is at stake or should I say our government. What we own is expendible. The higher the property values, the more they can get for it when we default on our loan or taxes.

That is what I think will happen, but I am no expert, I just read about how things work and guess what is going to happen if everything collapses. I am sure the EU and the world bank will be glad to take over all of our homes to pay off what we owe them.

originally posted by: Skinnerbot
a reply to: WeMustCare

Well yes but he is cutting stuff that other members of Congress feel is important out of his budget proposal and calling it waste.

Aid to Egypt for example and high deductibles for Medicare.

"Medicare is socialized medicine," and one way to control medical costs would be to impose a $2,000 deductible in the program.

Ah...I see your point! Rand Paul is on the right track with cutting aid to other countries. But with Medicare, the deductible is $1,600 anyway. Raising it to $2,000 isn't a big deal. However, I want the benefit levels INCREASED...not DECREASED. (Higher deductible is a decrease in benefit levels)

Yellen just needs to get locked up as a flight risk before she is sent to defend herself in court. She's allowing money to get dumped into elitist pockets left and right. Even now this Administration is giving out Covid relief money to taxpayers who neither filed for it, or even asked for it. The dump is just to try and crash the economy before Trump takes office. It's treasonous behavior by these people.

A lot of people asked what the deal was with all the Orange slices being used around the White House Christmas decorations this year, well during the Great Depression of the 1920-30s Oranges were a big treat for the public since it was in some economic classes a luxury item. It was done this year as messaging.

The Biden Administration is going to try and crash the economy and leave Trump dealing with a new Great Depression.

a reply to: rickymouse

You know a heck of a lot more than I do about how the U.S. Government financial system works. Thankyou for providing the additional insight!

So, from your perspective our economy really didn't "collapse" during the 2020/2021 pandemic? Some "experts" say it did, since we didn't default on anything, it wasn't that bad, was it.

a reply to: Guyfriday

Yellen sends a letter to Congress, but doesn't expect them to do anything about the debt ceiling? You feel she's attempting a type of psychological warfare against the Republican-led Congress?

Global economic collapse

...on the horizon...

a reply to: WeMustCare

Yes I do. Yellen has been around the DC monster farm for a long time now, and she knows what she is doing when it comes to Soros styled economic warfare.

a reply to: WeMustCare

Please tell me you are not serious? Because if they just keep printing money, inflation will be through the roof and it’ll cost $1 million to buy a loaf of bread.

a reply to: WeMustCare

The biggest waste of US gov. spending ever by far is Janet Yellen.

originally posted by: WeMustCare
a reply to: rickymouse

You know a heck of a lot more than I do about how the U.S. Government financial system works. Thankyou for providing the additional insight!

So, from your perspective our economy really didn't "collapse" during the 2020/2021 pandemic? Some "experts" say it did, since we didn't default on anything, it wasn't that bad, was it.

Much of what I had said was speculation. I have done research on it back when the Republicans were talking about it collapsing back in 08 but Obama got elected and somehow he poured enough money into it that it stayed solvent. It would have been way better off if it collapsed back then than now for the people. That was at the end of Bush's presidency that things went bad. Recovering now would be hard, especially since now so many people owe so much on their homes and personal debt of Americans is so high. Since 08, I think that a tremendous amount of people are in serious mortgage debt, if things crash, property values will plumit and a lot of houses will be owned by the banks because houses will be worth less than the loans on so many of them. People will just walk away and then since the banks borrowed so much from the feds to loan out the properties go to the feds. Our country is a mess.

That is my take on things, I know some about this kind of stuff, but I am no expert on it just because I read some articles on how things can unfold written by people in that field. Now, with so much BS on the net, you cannot tell anymore if information is actually real or pertinent. We are mushrooms, we are kept in the dark and fed bullsheet.

I recently read an article on American Thinker that gave a persoective I'd never seen before.

Nothing changes because America’s spending crisis can’t be solved.
Not in its present form.
Not without changes the American people refuse to make.
Here’s why.

First, myths about deficits and the national debt.

People think the national debt results from discretionary overspending. $1,000 Army toilet seats, million-dollar federal grants to study the sex lives of hermaphrodite salamanders, Washington pay raises, and legislative pork barrel projects are solely responsible for trillion-dollar deficits each year. They contribute, but they’re not the problem. They’re pocket change that wouldn’t cover 2023’s $1.6 trillion deficit if they were eliminated.

In 2023, 86% of the $6.1 trillion in federal spending covered mandatory budgets that the government must pay according to either federal law or common sense. This spending is locked in; there is no room for cuts. Here’s how it breaks down and why there’s no solution. The following totals came from the Congressional Budget Office (CBO).

Let’s start with the lowest line items.


Interest on the National Debt: $659 billion. The nation defaults if the government refuses to pay, which is financial suicide.

Income Security and Veterans’ Benefits: $950 billion. This includes financial assistance to the disabled, their families, low-income households, and family members who survive someone who received social security benefits.

Medicare and Medicaid: $1.46 trillion. These cover a portion or all of the health care for a vast number of people in the nation, from illegal aliens to the elderly. It provides cradle-to-grave services, from Children’s Health Insurance Programs (CHIP) to paying the cost of nursing home care for the elderly once they exhaust personal assets.

Social Security Payments: $1.3 trillion. This sacred payment has become the sacrosanct Golden Calf of American politics.

Defense Spending: $805 billion. Defense spending is discretionary and can be cut. But with the war in Ukraine, Middle East conflicts, and China’s desire to take Taiwan, reductions place America at risk.

The total cost of these “untouchable” programs, from the interest on the debt and entitlements to Defense spending, is $5.2 trillion, which leaves only $917 billion in discretionary spending for everything the government does.

So, what exactly is Washington going to cut?

I've left quite a bit out; read it in its entirity at the link.

Our politicians sold an endless stream of programs to an American public who embraced them with open arms while neither side bothered to ask if the government could pay for them. The generations of largesse have created dependency, and they’re now considered a natural right to which anyone currently living on American soil is presently entitled.

This created the greatest challenge of this entire budget drama — the mindset of the Americans who believe the federal government can pay for all the entitlements the vast majority of Americans can’t live without.

Nearly everyone or their family benefits from some level of government subsidy — whether it’s the Earned Income Tax Credit (EITC) for some working households, who pay no income taxes but receive a payment of thousands of dollars from the federal government if they meet income guidelines, to Medicaid that pays for nursing care for the elderly who have exhausted their resources so families do not have to care for them in their homes.

Much of the nation receives something from these categories, and that’s the problem.

[www.americanthinker.com...]

When the cliinton's left the Whitehouse they trashed the place; stealing furniture and anything that wasn't nailed down and just pure vandalism, like taking all of the 'W' keys off of computers. Biden is out-doing them by trashing the entire nation-beyond repair. There will have to be a reset at some point in the very near future.

Politicians have spent many years turning the US into a socialist country so slowly that few have noticed.

Why would they do that? Because we are chatle to them; a means to their wealth, power and elitist lifesstyle.

i know a great place she could start, cut pay and bennies for the three branches and pay them what they are worth or by the hour. and take away all the kickbacks and side deals away from them.

just base pay, bennies ( which can get into six figures for some) not included, for the three branches. bureaus, agencies or departments not included.

representatives and senators $174,000 x 535 = 93,090,000.
federal departments secretaries 15 x $ 221,400 =3,210.000
federal judges. 861 seats, using the base pay for the lowest 861 x $231,800 = $199,579,800

that would be that w a fairly good start even if it's just a drop in the bucket. then tackle the price gouging suppliers add on, keep budgets the same and any left at the end of the fiscal year carry over to the next at the same number unless forced to adjust due to inflation to a point.

there are many things that can be done that could cut spending, instead of lining the pockets of the greedy.

originally posted by: norhoc4
a reply to: WeMustCare

Please tell me you are not serious? Because if they just keep printing money, inflation will be through the roof and it’ll cost $1 million to buy a loaf of bread.

Borrowing the money doesn't have the same effect?

a reply to: cherokeetroy

Like a big "off" switch? After things come to a full stop, you turn the economies back on again.

FRESH START.