CNN: US government will run out of money by October 18, Treasury secretary says

[Lightning Count]

US government will run out of money by October 18, Treasury secretary says

Treasury Secretary Janet Yellen warned lawmakers that the federal government will likely run out of cash and extraordinary measures by October 18 unless Congress raises the debt ceiling.

edition.cnn.com

Secretary Janet Yellen warned lawmakers that the federal government will likely run out of cash and extraordinary measures by October 18 unless Congress raises the debt ceiling.
The new estimate from Yellen raises the risk that the United States could default on its debt in a matter of weeks if Washington fails to act. A default would likely be catastrophic, tanking markets and the economy, and delaying payments to millions of Americans.
"It is uncertain whether we could continue to meet all the nation's commitments after that date," Yellen wrote in a letter, adding the projection is based on estimated tax payments.

​

Previously, the Treasury Department estimated it would run out of cash and accounting maneuvers at some point in October.

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As alarming as this sounds this isn't the first time we have seen this happen.

Though you have to wonder if Republicans might decide to be pieces of shit and vote in such a way that might cause shutdown government.

Lock if old.

 

[Deleted member 70788]

US government will run out of money by October 18, Treasury secretary says

Treasury Secretary Janet Yellen warned lawmakers that the federal government will likely run out of cash and extraordinary measures by October 18 unless Congress raises the debt ceiling.

edition.cnn.com

As alarming as this sounds this isn't the first time we have seen this happen.

Though you have to wonder if Republicans might decide to be pieces of shit and vote in such a way that might cause shutdown government.

Lock if old.

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They will.

And there is infighting with the Dems (mainly Sinema being a jerk). So we will see what happens.

 

[BassForever]

Our government/country can't continue to go on this way.

 

[Varjet]

Wealthiest country in the world.

 

[Foffy]

Our government/country can't continue to go on this way.

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But it will. It's only going to get worse and decline further. Too slow to deal with the modern world, and too ruined by the conservative movement to handle the self-inflicted wounds of sabotage put upon it.

 

[Deleted member 70788]

Honestly, the dumb debt ceiling law needs to be removed. It's just a pretend cap that has been raised 30+ times. There's legal ground to nuke it, but both parties like having the leverage for partisan reasons.

 

[Saganator]

Ah yes, the ole Dem president so it's time for GOP to care about the debt and deficit song and dance, a classic.

 

[Armoured_Bear]

Wealthiest country in the world.

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and greatest.

 

[LiS Matt]

Why does this seem to happen every year?

 

[ElectricBlanketFire]

Have they tried skipping their avocado toast?

 

[Deleted member 70788]

Why does this seem to happen every year?

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Because the debt ceiling has to be voted on to be lifted every few years. Both parties leverage this for partisan negotiation while holding the country's economy hostage. It's really stupid.

 

[Bold One]

Buy fewer candles.

 

[Transistor]

Though you have to wonder if Republicans might decide to be pieces of shit

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I don't have to wonder. I know.

 

[DarthWalden]

I can't wait for Conservatives to blame Biden for this lol.

 

[Vincent Alexander]

Buy fewer candles.

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No.

 

[Zombegoast]

Maybe they should stop spending it on private contractors to bomb brown people

 

[jelly]

Can the Dems push this through but need those few annoying Republican Dems to do so or need some actual Republicans too?

 

[bangai-o]

I saw someone post on YouTube about Dems voting to allow the debt ceiling being raised twice during Trump admin, while Repubs will vote no during Biden. I wasn't sure the context of that post until now.

 

[Thordinson]

Can the Dems push this through but need those few annoying Republican Dems to do so or need some actual Republicans too?

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They can do it themselves through reconciliation but they don't want to because reconciliation can only be used so many times. That's what Mitch McConnell and the GOP wants them to do. The Executive Branch can, likely, do many things to avoid it as well. They can pass a bill by themselves to raise the limit as well.

We won't run out of money, it's a purely arbitrary limit.

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It is but the government wouldn't be able to borrow money if the debt ceiling isn't raised and will default. This would be incredibly bad.

 

[David Incorporated Esq.]

We won't run out of money, it's a purely arbitrary limit.

 

[Deleted member 70788]

Can the Dems push this through but need those few annoying Republican Dems to do so or need some actual Republicans too?

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No republicans needed. Sinema is holding it up mostly.

 

[The Albatross]

Republicans passed a $2.1t tax cut for the rich package in 2017 that was unpaid for. Today, in 2021, they don't want to pay for it.

That's the narrative.

 

[Unknownlight]

A reminder of what the debt ceiling actually is:

 

[Deleted member 24052]

I saw someone post on YouTube about Dems voting to allow the debt ceiling being raised twice during Trump admin, while Repubs will vote no during Biden. I wasn't sure the context of that post until now.

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The GOP are regressive obstructionists. The Dems fuck up (or get held hostage by 1-2 ass holes like Sinema) but they at least try to govern.

 

[netprints]

I guess we shouldn't have sent more money for the iron dome....

 

[Katamari]

Someone correct me if I'm wrong -

Basically the Democrats could include this in the $3.5T reconciliation bill. That requires only 50 votes + VP. But that's a pain because the senate has to pass the framework again.

They can do a separate stand-alone bill to raise it, but that requires 60 senators because McConnell is being an ass by filibustering it.

Or Biden can order the treasury to mint a trillion dollar coin or challenge the debt ceiling with the 14th amendment. Both are controversial and unlikely, but neither rely on congress.

 

[David Incorporated Esq.]

Republicans passed a $2.1t tax cut for the rich package in 2017 that was unpaid for. Today, in 2021, they don't want to pay for it.

That's the narrative.

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This is good. I like this

 

[rjinaz]

US government will run out of money by October 18, Treasury secretary says

Treasury Secretary Janet Yellen warned lawmakers that the federal government will likely run out of cash and extraordinary measures by October 18 unless Congress raises the debt ceiling.

edition.cnn.com

As alarming as this sounds this isn't the first time we have seen this happen.

Though you have to wonder if Republicans might decide to be pieces of shit and vote in such a way that might cause shutdown government.

Lock if old.

Click to shrink...

With Democrats currently in charge of congress and the presidency, Republicans absolutely want the government to shutdown, because people will 100% blame Democrats. Republicans also don't care if people suffer so there is everything to gain and nothing to lose for them.

 

[Deleted member 70788]

Someone correct me if I'm wrong -

Basically the Democrats could include this in the $3.5T reconciliation bill. That requires only 50 votes + VP. But that's a pain because the senate has to pass the framework again.

They can do a separate stand-alone bill to raise it, but that requires 60 senators because McConnell is being an ass by filibustering it.

Or Biden can order the treasury to mint a trillion dollar coin or challenge the debt ceiling with the 14th amendment. Both are controversial and unlikely, but neither rely on congress.

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Basically. Yes.

 

[Arta]

Why does this seem to happen every year?

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[nihilence]

Bipartisanship is mostly a pipe dream. The biggest thing they agree on is to disagree (mostly). There are so many cases where something is rejected and then propose by the other side. I've always joked that even Jesus Christ would have a hard time getting meaningful work done.

Things like this, they enjoy having leverage over each other.

 

[Katamari]

With Democrats currently in charge of congress and the presidency, Republicans absolutely want the government to shutdown, because people will 100% blame Democrats. Republicans also don't care if people suffer so there is everything to gain and nothing to lose for them.

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This wouldn't be a shutdown, this would be the US government defaulting on its debt. Everyone loses. Trillions of wealth disappear and millions of jobs are lost. We would likely plunge into a recession.

Republicans are playing chicken to make the passing of the reconciliation bill harder.

 

[bionic77]

Why does this seem to happen every year?

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The country is both insanely divided and also just plain insane.

That doesn't lead to a lot of useful talks when it comes to how to run this country.

 

[Thordinson]

This wouldn't be a shutdown, this would be the US government defaulting on its debt. Everyone loses. Trillions of wealth disappear and millions of jobs are lost. We would likely plunge into a recession.

Republicans are playing chicken to make the passing of the reconciliation bill harder.

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It would be both a default and a shutdown.

And the GOP doesn't care.

 

[rjinaz]

This wouldn't be a shutdown, this would be the US government defaulting on its debt. Everyone loses. Trillions of wealth disappear and millions of jobs are lost. We would likely plunge into a recession.

Republicans are playing chicken to make the passing of the reconciliation bill harder.

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I obviously had a total misread of the situation thanks.

I'll never assume Republicans won't fuck the country over though if it means the Dems have to own it.

 

[Senator Toadstool]

Can a mod correct the title. in no way will the US government "run out of money" it won't be able legally (which is dubious for multiple reasons) issue new debt.

there is no "lack of money"

 

[Katamari]

It would be both a default and a shutdown.

And the GOP doesn't care.

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I may be wrong, but I think McConnell has enough sense to not want the government to default. I definitely think there's many in their party that do and that part is taking over.

 

[Deleted member 70788]

I may be wrong, but I think McConnell has enough sense to not want the government to default. I definitely think there's many in their party that do and that part is taking over.

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He is fine with it as long as the Dems take the blame.

 

[Lkr]

I may be wrong, but I think McConnell has enough sense to not want the government to default. I definitely think there's many in their party that do and that part is taking over.

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oh his quotes indicate he is more than willing to default to own the libs.

 

[Thordinson]

Can a mod correct the title. in no way will the US government "run out of money" it won't be able legally (which is dubious for multiple reasons) issue new debt.

there is no "lack of money"

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The title is correct. The Treasury will run out of money to pay its debts after that date. They also would be unable to issue new debt if the debt ceiling isn't raised.

I may be wrong, but I think McConnell has enough sense to not want the government to default. I definitely think there's many in their party that do and that part is taking over.

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They don't care as long as the Dems take the blame.

 

[TarpitCarnivore]

This has been a political move for going on two decades now, if not more. It's always BS posturing to make the other side look back. The US government has down shut downs before

 

[PeskyToaster]

Honestly, the dumb debt ceiling law needs to be removed. It's just a pretend cap that has been raised 30+ times. There's legal ground to nuke it, but both parties like having the leverage for partisan reasons.

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Exactly. This is a situation where both parties have kicked the can down the road hoping for their turn to use it for political points. Except that only Republicans are willing to play chicken with the fate of the country while Democrats (rightfully so) aren't willing to tank the country for cheap points. It's not worth it to keep this tool on the field imo.

 

[Senator Toadstool]

The title is correct. The Treasury will run out of money to pay its debts after that date. They also would be unable to issue new debt if the debt ceiling isn't raised.




They don't care as long as the Dems take the blame.

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it will not run out of money. it won't legally be able to spend. this distinction is what the GOP thrives on. misinforming americans on the nature of fiat money

 

[Grym]

when did this stupid debt ceiling law happen anyway? Or was I just not paying attention previously...because I don't remember a constant threat of government shutdown 20 years ago.

 

[Deleted member 70788]

when did this stupid debt ceiling law happen anyway? Or was I just not paying attention previously...because I don't remember a constant threat of government shutdown 20 years ago.

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It's always been a thing but we used to have a surplus decades ago. Debt ceiling only started becoming a reality about 20-30 years ago.

 

[Lkr]

when did this stupid debt ceiling law happen anyway? Or was I just not paying attention previously...because I don't remember a constant threat of government shutdown 20 years ago.

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there was more consensus on things like funding the government and paying bills 20 years ago. just an unfortunate deterioration of the government
also cant stand the gaslighting from the republicans about being fiscally conservative and thats why they won't raise it. fuck off turtle

 

[Katamari]

oh his quotes indicate he is more than willing to default to own the libs.

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Well, shit. Guess it's hard mode with slim majorities of 50 senators and 218 reps. Roughly two weeks while also trying to pass $4.5T bills. And all this with Sinema being a necessary vote.

 

[Lkr]

Well, shit. Guess it's hard mode with slim majorities of 50 senators and 218 reps. Roughly two weeks while also trying to pass $4.5T bills. And all this with Sinema being a necessary vote.

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the GOP already shut down debate on it once in the senate I believe. its ridiculous that the media isn't saying what republicans are doing

 

[killerrin]

I love how absolutely ZERO other countries on this planet face this issue. Really goes to show that this is solely due to America's own incompetence

 

[FliX]

I'm sure glad the Dems control all levers of power, would be quite the shit show if congress was split between the parties.