Dire warning for Biden as the US risks running out of cash 'within weeks'

Joe Biden‘s trillion dollar spending boost will be used to pay for infrastructure, childcare, education, healthcare and the fight against climate change, and the changes are likely to offer more help to lower and middle-income families. Honourable motives aside, the expenditure is creating spectacular political theatrics in Washington as an impasse on the country’s debt ceiling embeds itself deeper between the Republicans and the Democrats.

“We’ve set a goal, and the goal is achievable. I promise you, I promise you,” the president said on the outskirts of Denver, Colorado on Tuesday.

“It’s going to create great economic growth, reduce inflation, and put people in a place where those beautiful children in the back are never going to have to worry about what we’re worrying about right now.”

© GETTY Joe Biden

While Mr Biden presents as optimistic, Congress returns next week, and his Government will enter something of a dangerous crunch period.

In approximately mid-October, the US Government’s debt could rise to $28.5 trillion, beyond which its Treasury may be unable to go through with such ambitious spending plans.

A plan is being considered by the House speaker, Nancy Pelosi, and the Senate majority leader, Chuck Schumer, which involves suspending the debt ceiling past the 2022 midterm elections in a stopgap bill that would keep the US Government-funded through early December.

© GETTY Nancy Pelosi

The ambitious – to put it lightly – plan to do this would result in the Republicans being dared to block the stopgap funding with a filibuster and prevent it from receiving the 60 votes it would need to pass the Senate.

This would result in a Government shutdown on October 1, leaving the US unable to pay its bills.

The US has nearly always avoided defaulting on debt, and it’s likely some resolution could be made between now and then.

© GETTY Janet Yellen

But economists have issued the warning that any failure to raise or suspend the debt limit when tied to the stopgap funding measure would be particularly catastrophic.

It would mean the US would be unable to service its debt obligations in the midst of a potentially non-functional federal government.

The showdown is accelerating after Treasury Secretary Janet Yellen said the US defaulting would cause “irreparable harm” to the economy.

She said in a letter to Nancy Pelosi: “Once all available measures and cash on hand are fully exhausted, the United States of America would be unable to meet its obligations for the first time in our history.”

© GETTY Joe Biden

In a letter to Congress, she said: “At a time when American families, communities, and businesses are still suffering from the effects of the ongoing global pandemic, it would be particularly irresponsible to put the full faith and credit of the US at risk.”

A default could seriously harm America’s credit rating, which will raise interest rates that could cost the US Government billions of dollar, ultimately resulting in higher borrowing costs for American businesses as their rates are benchmarked to Treasury rates.

Democrats have insisted that the need to suspend the debt ceiling was due to the previous Trump administration.

Throughout Donald Trump’s maligned presidency, national debt increased to approximately $8 trillion.

Ms Pelosi said in a recent news conference: “We’re paying the credit card, the Trump credit card.”

Such a dramatic prospect of a shutdown isn’t unusual for the US.

During Barack Obama’s presidency, Standard & Poor’s stripped the US of its triple-A credit rating amid an impasse over the ceiling.

His successor Mr Trump’s much-documented battle for a wall spanning the US-Mexico border led to a prolonged fight in Washington, resulting in a 35-day shutdown between 2018 and 2019, leaving 800,000 federal workers without pay.

Internet Explorer Channel Network
News Related

OTHER NEWS

US citizens will need vaccine or negative test to enter America

(Getty Images) US citizens returning from abroad will still need to provide proof of having received a Covid-19 vaccine if they want to avoid more stringent testing requirements, White House ... Read more »

BIR taps Russian, Korean experts in digital taxation

© BW file photo BIR taps Russian, Korean experts in digital taxation MANILA, Philippines — The Bureau of Internal Revenue (BIR) will work with its counterparts from Russia and South ... Read more »

UP opens 2022-23 applications

© STAR/File UP opens 2022-23 applications MANILA, Philippines — The University of the Philippines (UP) officially opened on Monday its college application for school year 2022-23. However, it is not ... Read more »

KBC 13: Amitabh Bachchan cracks up as contestant gives Nana Patekar's Ek Machhar line a Kaun Banega Crorepati twist

© Provided by Zee News NEW DELHI: Amitabh Bachchan, who is currently seen as the host of ‘Kaun Banega Crorepati 13’, was left in splits after a contestant mimicked Nana ... Read more »

One-night love affair: Bryan Adams rings in 2022 with Vancouver New Year's Eve Party

TORONTO — Bryan Adams is throwing a New Year’s Eve bash in Vancouver this year that organizers say will be one for the history books. © Provided by The Canadian ... Read more »

The Best YETI Gifts of the Holiday Season

© Courtesy of YETI It’s the holiday season and all we can think about is YETI. No, not the Yeti. We’re talking about YETI — the outdoor brand known for its powerhouse ... Read more »

Pakistan vs New Zealand Live Score, T20 World Cup 2021, Today's Match at Sharjah: Ish Sodhi Dismisses Fakhar Zaman

© Provided by News18 Pakistan vs New Zealand Live Score, T20 World Cup 2021, Today’s Match at Sharjah: Ish Sodhi Dismisses Fakhar Zaman Pakistan vs New Zealand, Live Cricket Score, ... Read more »

Akshay Kumar grooves to Aila Re Ailla on Marathi show Chala Hawa Yeu Dya. Watch promo

Akshay Kumar on the sets of Chala Hawa Yeu Dya. Akshay Kumar will be seen in an upcoming episode of Marathi TV show Chala Hawa Yeu Dya. He will be ... Read more »

This Best-Selling Shampoo & Scalp Massager Brush Is 32% Percent Off For A Limited Time

© Design: Ashley Britton/SheKnows. Do you feel like your scalp and hair isn’t getting quite as clean as it should? If the answer is yes, you might want to add ... Read more »

Aishwarya Rai Bachchan keeps Aaradhya close in THIS picture perfect moment with Abhishek Bachchan

© Provided by Pinkvilla It was in the first half of October 2021, when power couple Aishwarya Rai and Abhishek Bachchan jetted off to Paris along with daughter Aaradhya. Photos ... Read more »

UNB player holds hockey camps for Indigenous girls to make sport more accessible

© Submitted by Jana Headrick Jana Headrick, who plays defence for the UNB Reds, says she hopes to see more people like her on the ice in the future. Jana ... Read more »

25 dark academia outfit ideas for a trendier fall wardrobe

At a moment in time when students weren’t able to go to school, offices were closed and many of us stuck to our sweatpants and leggings, one particular internet subculture ... Read more »

This Trusted Brand's Le Creuset Dutch Oven Dupe Is On Sale For Less Than $100

© Courtesy of Lodge. The temperature is dropping rapidly, there are pumpkins everywhere, and even Rachel Ray has announced that Dutch oven soup season is here. It’s the time of ... Read more »

The Hockey News Podcast: Time for the Maple Leafs to Panic?

How worried should Toronto be about its slow start? Are the Blackhawks doomed? How many points does Connor McDavid get this year? And more. © Provided by Hockey News on ... Read more »

Schlag gegen Darknet-Handel: 150 Festnahmen, zwei in der Schweiz

In den USA und in Europa sind Polizeibehörden gegen die organisierte Online-Kriminalität vorgegangen – unter den Verdächtigen befinden sich «hochrangige Ziele». © Foto: Keystone Illegale Substanzen in einer im Darknet ... Read more »

Manchin: IRS reporting requirements likely 'going to be gone' from spending bill

Sen. Joe Manchin (D-W.Va.) sharply criticized a proposal to force banks to report more account information to the IRS, making it much more likely that Democrats will have to drop ... Read more »

Why the writing is on the wall for Facebook

© Provided by The Guardian Photograph: Marcio José Sánchez/AP Uh-oh, it looks as if Mark Zuckerberg has caught on to the media’s dastardly plot to destroy Facebook! As you have ... Read more »

Queens Catholic school male music teacher is FIRED for marrying a man: Brooklyn Diocese says nuptials violate contractual obligation

Matthew LaBanca was let go from his job as a music teacher at St. Joseph's Catholic Academy in Astoria and as music director at Corpus Christi church LaBanca said he was fired on October 13 after someone called the Diocese of Brooklyn to inform officials about his August wedding to his partner RowanA Diocese spokesman said LaBanca's gay marriage did not 'support and exemplify by his/her public conduct Catholic doctrine and morality' LaBanca said discrimination based on sexuality is illegal in New York state but the First Amendment allows religious institutions to legally discriminateLaBanca says he was offered a severance package that included a 10-page gag order to keep him from speaking about his termination, which he refusedA Change.org petition calling for LaBanca's reappointment to both his positions has already garnered over 1,500 signatures Read more »

White House Releases Details on Which Foreign Travelers Will Be Allowed Into the U.S. Without a COVID Vaccine

The White House on Monday detailed guidelines for the resumption of international travel, laying out exceptions to its vaccine requirement just weeks before the United States plans to reopen its ... Read more »

Coronation Street spoiler sees Abi come clean and Corey make a run for it

The latest Coronation Street spoiler proves next week is going to be a big one in Weatherfield. The events that are set to unfold will see Abi Frankin (Sally Carman) ... Read more »

You Can Now Scale the Side of an NYC Skyscraper — and Celebrate With a Glass of Champagne at the Top

The newest experience in New York City is not for the faint of heart (or those afraid of heights), but promises unmatched views over the Big Apple. © Provided by ... Read more »

Ministers bow to pressure to toughen law on sewage dumping in bid to avert Lords defeat

© Independent Breaking News Ministers have bowed to pressure in a row to introduce tougher action against water companies dumping untreated sewage into rivers. In an eleventh-hour compromise before a ... Read more »

Loudoun County parents required to sign type of NDA to view CRT-affiliated curriculum

Parents of Loudoun County public school students have been asked to sign a type of nondisclosure agreement to view a curriculum connected to a group known to push critical race ... Read more »

What One T+L A-List Advisor Experienced During 'The Greatest Safari on Earth'

As the Founder and CEO of ROAR AFRICA, I have curated thousands of journeys to Africa over the past 15 years, working closely with my incomparable team to create life-changing ... Read more »

Ex-NFL player Correll Buckhalter gets prison time and fellow retirees Anthony Montgomery and Darrell Reid get house arrest for their roles in $4million healthcare fraud scheme

Ex-NFL players Correll Buckhalter, Anthony Montgomery and Darrell Reid have been sentenced for their roles in a $4 million healthcare fraud schemeThey were sentenced in federal court, with Buckhalter getting 10 months in prison and 10 months of house arrest. The others got 10 months of house arrestThe three are among 15 who have pleaded guilty in the case, which involved retired players making false claims under the league's healthcare fundBuckhalter, a former Philadelphia Eagles running back, accumulated $121,000 in fake claims, while the others raked in $94,000 and $93,000 apiece The 43-year-old Buckhalter was also charged in 'a separate, similar conspiracy. In that, he and his co-conspirators received $750,000 in false reimbursements  Read more »

Alyssa Milano Reflects on Marriage to David Bugliari, Says Love 'Is a Constant State of Apology'

In her new book, Alyssa Milano is candid about what makes her marriage to husband David Bugliari strong — and the difficulties they’ve faced. © Provided by People Tara Ziemba/Getty David ... Read more »

Video: Ilhan Omar blames 'dysfunctional' Minneapolis police for spike in violent crime claiming they have 'chosen not to fulfil their oath to provide public safety' 

Read more »

PHOTOS: Katrina Kaif and Vicky Kaushal get papped after news of their wedding?

Actor Vicky Kaushal is currently basking in the success of his film Sardar Udham. However, Vicky is not only the talk of the town because of his performance but also ... Read more »

'Sorry what', 'Ralph out', 'Lost the plot' - Many Southampton fans livid at pre-Chelsea news

Southampton fans are far from happy with the news that Ralph Hasenhuttl is trying to turn Yan Valery into a centre-back. © Provided by Transfer Tavern Yan Valery vs Arsenal ... Read more »

Turquie : Pourquoi Recep Tayyip Erdogan a-t-il « joué un jeu dangereux sans finalement duper personne » ?

En menaçant de renvoyer pas moins de dix ambassadeurs dans leur pays, Recep Tayyip Erdogan a joué à un jeu dangereux. Le président turc a depuis changé d’avis © Murat ... Read more »

Nutrition-in-a-box even picky-eaters will love

© The Manila Times Help children get the nutrition they need in delicious dairy drinks. FACEBOOK PHOTO Because of the pandemic, there is an increased focus on maintaining good health, ... Read more »

Video: Smile! Hilarious moment couple are photobombed by pub brawlers as they pose for a picture

Read more »

Wayne Rooney breaks silence on Chris Kirchner's Derby County takeover bid

Wayne Rooney, the Derby County manager, has added his considerable voice to the backing of prospective new owner Chris Kirchner. The American is the co-founder of a global logistics company ... Read more »

Huge blow: Celtic injury setback confirmed ahead of Hibs clash, fans will be gutted - opinion

© Provided by Football FanCast Celtic, Hoops, Bhoys, SPFL, Scottish Premiership, Greg Taylor, Celtic Injuries, Parkhead, Adam Montgomery, Boli Bolingoli, Celtic have been dealt a huge injury blow ahead of ... Read more »

Casa Blanca de Biden vuelve a negar el privilegio ejecutivo a Trump por los documentos del 6 de enero

© Getty Images GettyImages-1345757904.jpg El gobierno de Biden negó de nuevo a hacer valer el privilegio ejecutivo para los documentos adicionales que el ex presidente Donald Trump quería bloquear del ... Read more »

Kanye West's former Hollywood Hills home is listed again for $3.7 million: Minimalist bachelor pad is where rapper in early days of relationship with estranged wife Kim Kardashian

Kanye West, 44, purchased the Hollywood Hills house in 2003, before he had released his first albumThe rapper briefly lived there with Kim Kardashian early in their relationship before moving into a larger Bel Air mansionHe held on to the home until 2017, using it as storage for Kim's expanding wardrobeThe home is now being sold by Rufus Hankey, son of billionaire Don HankeyWest, who has legally changed his name to Ye, is currently owns two large Wyoming ranches and a nearly $60 million beachfront home in Malibu, while his estranged wife now owns their Hidden Hills home  Read more »

Youngkin, McAuliffe Tangle Over Education in Bid for Suburban Virginia Voters

What worries suburbanites more: the coronavirus or what their children are being taught in schools? © (Steve Helber/AP) Republican gubernatorial candidate Glenn Youngkin speaks during a rally in Glen Allen, ... Read more »

West Ham vs Man City preview: Coufal misses out

© PA Vladimir Coufal is unlikely to be risked for West Ham in the Carabao Cup Team news and stats ahead of West Ham vs Man City in the Carabao ... Read more »

‘Vintage' performance reminds us what a healthy Vladimir Tarasenko can do

© Provided by NBC Sports Vladimir Tarasenko took off the headset and glanced around the energized Enterprise Center. His postgame interview with Bally Sports Midwest’s Darren Pang got off to ... Read more »

Yahoo Sportsbook Daily: CFB over/unders, NFL survivor lock of the week

Subscribe to Yahoo Sportsbook Daily Apple Podcasts • Stitcher • Google Podcasts • Spotify Pam Maldonado is here to keep your hot streak alive with three college football game totals ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic