Yellen said the Treasury would be forced to take “some extraordinary steps” to avoid an immediate default once the government’s debt reaches $31.381 trillion. Among them is the suspension of contributions to pension and social funds, reports RIA Novosti.
At the same time, the minister noted that the use of extraordinary measures will allow the US government to fulfill its obligations only for a limited period of time. That’s why it’s “critical” that Congress raise or suspend the debt limit in a timely manner, Yellen said.
He also recalled that non-compliance would cause “irreparable damage” to the US economy, the well-being of Americans and global financial stability.
Let us remember that in October the US Treasury published data on the amount of public debt. For the first time in history, this figure exceeded 31 trillion dollars. After the publication of these data, the Americans attacked the government with criticism. They drew attention to the fact that American veterans live in poverty, while Washington at this time is actively helping Ukraine, sending it billions.
Rising public debt is a serious threat to US national security, writes The Washington Times. The article notes that today the United States is experiencing stagflation with a debt burden comparable to that seen during World War II.