US Treasury: Washington's default on its debt could lead to a "global financial crisis"

[yota691]

US Treasury: Washington's default on its debt could lead to a "global financial crisis"

US Treasury Secretary Janet Yellen warned on CNN Friday that a default on US debt will "definitely lead to a recession in the United States and could lead to a global financial crisis."

The Treasury secretary was speaking from Dakar, Senegal, as part of a 10-day visit to the African continent, which will also take her to Zambia and South Africa.

On Friday, the United States reached the debt ceiling set by Congress, and officials have not yet been able to reach an agreement in this regard.

The Treasury launched "extraordinary measures" Thursday to continue meeting its obligations and avoid default, pending a political agreement.

Yellen said that in the event of a US debt default, "our borrowing costs will go up, and every American will see their borrowing costs follow the same trend" and she will go up too.

"Moreover, failure to make any payments... will undoubtedly lead to a recession in the US economy and could cause a global financial crisis," she added.

And she stressed, "This will undoubtedly undermine the role of the dollar as a reserve currency used in transactions all over the world. Many Americans will lose their jobs."

And the White House confirmed on Friday evening that President Joe Biden will soon discuss with Republican leader Kevin McCarthy the issue of the US debt ceiling, which is a controversial topic in Washington.

Default is likely to cause panic in the financial markets and then in the global economy, at a time when the United States is trying to get through a difficult economic period after Covid without falling into a recession.

Source: Al-Quds Al-Arabi

[coorslite21]

2 hours ago, yota691 said:

US Treasury Secretary Janet Yellen warned on CNN Friday that a default on US debt will "definitely lead to a recession in the United States and could lead to a global financial crisis."

Hey Janet.......already in progress......time for you to ride off into the sunset!

CL

[yota691]

Biden warns of an "unparalleled" catastrophe that may occur in the United States

Because of debt.. Biden warns of an "unparalleled" catastrophe that may occur in the United States

 Jan 21, 2023 11:29 AM

 

 

Mubasher: US President Joe Biden said that a US debt default would be an unparalleled financial catastrophe in the United States.

Biden pledged to have a "discussion" with House Speaker Kevin McCarthy about US debt amid a looming debate over raising the debt ceiling.            

"The debt that we pay has accumulated over 200 years, and we will have a simple discussion about that with the new majority leader in the House of Representatives," Biden said during an event with the mayors of cities.

Biden gave no details of when he would hold talks with McCarthy, a Republican newly appointed speaker of the House of Representatives who wants to link a vote to raise the debt ceiling to government spending cuts.

McCarthy said in a tweet directed at Biden that he had accepted his invitation to "sit down and discuss a responsible increase in the debt ceiling to address irresponsible government spending."

White House spokeswoman Karen Jean-Pierre said in a statement that Biden looks forward to meeting with McCarthy to "discuss a range of issues" as part of a number of his meetings with new leaders in Congress.

She stated, "As the president has said many times, raising the debt ceiling is not a negotiation. It is an obligation of this country and its leaders to avoid economic chaos."

The White House has repeatedly said it will not negotiate raising the debt ceiling and has used some Republican proposals to cut spending to show inconsistency with Democrats' priorities.

[yota691]

All Politicians spending like a Drunken sailor...and Biden Voters, contributed to this mess, since you don't think the election was rigged...  

 

Common Sense is no longer common!!