US Treasury warned of the threat of default
In Washington, few people are embarrassed by the more frequent statements of the US Treasury Department in recent years about the country's impending default - the impossibility of timely payment of the state debt. On July 23, the head of the US Treasury, Janet Yellen, sent another warning to the US Congress about the threat of default and the accompanying "irreparable damage" for economics countries and citizens.
The minister reminded lawmakers that the public debt ceiling is "frozen" until July 31, 2021, i.e. you can not borrow more than prescribed before that date. She clarified that if the ceiling of the national debt is not increased or the borrowing process itself does not stop, then on August 1 the level of the US national debt will reach the level set by the legislators. If legislators by this time do not take any action, for example, do not increase the borrowing threshold until the next date, then on August 2, the Ministry of Finance will begin to implement "certain additional emergency measures to prevent the US from default on obligations."
The head of the Ministry of Finance added that on October 1, a new financial year begins in the United States. If by this number the legislators do not decide on a decision, then the budgetary possibilities of the American government will be significantly undermined. Yellen pointed out that in 2011, for the first time in history, "only" because of the threat of default, the US credit rating was downgraded. She stressed that not a single head of the American state or department, no matter what political force he is, ever thought about the country's default.
In turn, the press secretary of the US President Jen Psaki called the letter of the head of the Ministry of Finance - "standard practice" before the next extension of the public debt ceiling. The White House speaker explained that before that, American lawmakers had raised and "frozen" the ceiling of the national debt about 80 times.
According to the Congressional Budget Office, the US budget deficit in fiscal 2021 will be $ 3 trillion. Currently, the volume of the US government debt exceeds $ 28,3 trillion.
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