US Treasury Secretary Yellen wrote in the letter that the Ministry of Finance is expected to suspend new investment in two government retirement funds for pensions and healthcare this month, and suspension of suspensionReserture to government securities investment funds.
(Washington Composite Electric) The United States may reach the upper limit of the statutory debt next week, which will force the Ministry of Finance to take some "unconventional measures" to prevent US default.
US Treasury Secretary Yellen revealed that the United States may reach a legal debt limit of US $ 3.1.4 trillion ($ 41.41 trillion) on January 19.She said in a letter to the House of Representatives McCarthy: "Once the debt limit is reached, the Ministry of Finance will begin to take some unconventional measures to prevent debt defaults in the United States."
Data from the US Treasury Department show that as of Wednesday (January 11), the US government has reached a debt limit of about 78 billion US dollars.
Yellen wrote in the letter that the Ministry of Finance is expected to suspend new investment in two government retirement funds for pensions and healthcare this month, as well as the suspension of reinvestment of government securities investment funds.Once the debt limit is raised, these investments will be restored.
Yelun urges Congress to quickly take action to increase debt limit to "protect the complete integrity and credit of the United States."
She said: "Unconventional measures can only allow the government to fulfill their obligations within a limited time ... Although the Ministry of Finance is currently unable to estimate how these measures can keep the government's ability to repay debts, but cash and unconventional measures are unlikely to be inOwn exhaustion before June. "
Yellen pointed out that it is crucial to take action to improve or suspend the debt limit in a timely manner: "The unable to fulfill the government's obligations will cause incomparable damage to the US economy, all Americans and global financial stability."
She shows that the increase or suspension of debt limit will not authorize new expenditure commitments or spend taxpayers' money, but only allows the government to provide funds for the existing legal obligations formulated in the past.
The Republicans of the House of Representatives have previously stated that the Democratic Party and the Bayeng government will agree to increase the debt limit by reducing expenses.
Washington and Wall Street are worried about the 2011 debt limit crisis again
This caused concerns about Washington and Wall Street, worried that the debt limit crisis in 2011 will be repeated; the deadlock of that year has caused US credit rating to reduce, and domestic expenditure and military expenses have been forced to reduce for many years.
McCarthy told reporters on Thursday: "We must change the way to waste money."
However, the White House indicates that the debt limit will not be raised to negotiate with the Republican Party.The White House spokesman Jean Piel said: "(Raising the upper limit of debt) should be unconditional, and we will not negotiate this."
Former US Treasury Secretary Samer pointed out that the United States's performance of debt is extremely important, and it is the most stupid behavior to fight for the upper limit of debt.He told Bloomberg TV: "The breach of contract will trigger a disaster, which will mean a higher borrowing cost."
