8/15/2023 0 Comments When does wrc 10 come out![]() "You can imagine the legal challenges that would arise if the United States government is paying foreign bondholders over SNAP recipients, or getting Social Security checks out on time," said Snyderman. She said it was still default by another name. being able to prioritize paying some bills over others as a group of Republican lawmakers have proposed. Treasury Secretary Janet Yellen has pushed back on the U.S. Even if prioritization of certain payments were an option, he said it does not "fool the bond markets." Could the U.S. If they're not able to get paid, they may have to lay off workers, miss mortgage payments and risk bankruptcies, which will again have a cascading effect across the economy," Riedl said. There are doctors who get reimbursed for seeing Medicare and Medicaid patients defense contractors that sell parts to the federal government small businesses that sell office supplies there are contractors who build highways. ![]() "One of my real concerns is with federal contractors. She said government employees and vendors would be showing up for work but might not know when they're going to be paid.Īmong some of the larger payments scheduled in early June are $47 billion for Medicare and $12 billion for veterans benefits, $25 billion in Social Security on June 2 and June 14, and $4 billion in federal salaries on June 9. It's so different from a government operating in a government shutdown scenario where agencies have a well-put-together operation plan for who goes to work, who doesn't," Snyderman said. could hit the X-date happen within weeks as tax receipts have been below expectations. The Bipartisan Policy Center estimates the U.S. "We could see anything from military pay, veteran benefits, Medicare provider payments, numerous other payments that would come due immediately or in the following days, some of which would be made on time or not," said Rachel Snyderman of the Bipartisan Policy Center. ![]() The longer it goes on, the uglier the economic downtown would likely be, experts say. The cost of borrowing would also go up, and the availability of credit would be lower – making it more expensive and challenging to get a personal loan, car loan or mortgage. "Their wealth will be diminished by what's going on in the markets because investors are going to be discounting the possibility that lawmakers don't get together and the economy goes into recession and there will be a default on the debt." "The first thing that will happen is people's 401K plans will be worth less," said Mark Zandi, chief economist for Moody's Analytics. not paying even the more insignificant bills. From the stock market to the bond market and the foreign exchange, markets would be roiled by the U.S. There would be volatility in markets – with a lot of people seeing red. What would the government not paying its bills mean for the economy? "If we hit June 1, that means the Treasury will have a difficult time predicting on a daily basis if that day's tax revenues will be enough to cover that day's spending obligations," said Brian Riedl, senior fellow at think tank The Manhattan Institute. hits the X-date without lawmakers reaching an agreement, it would be uncharted territory. "The only option that really leaves our economy in good shape is - and our financial system - is raising the debt ceiling." Every option is a bad option," said Yellen. "If Congress doesn't raise the debt ceiling, the president will have to make some decisions about what to do with the resources we do have, and there are a variety of different options, but there are no good options. Biden and the Treasury can take to prevent disaster if Congress does not act. She has warned that there is no action Mr. "This would be a huge hit to the economy and really an economic catastrophe," Treasury Secretary Janet Yellen told CNBC on Monday. ![]() If Congress does not raise or suspend the debt limit, the Treasury Department estimates the United States could run out of money as early as June 1, giving a divided Congress just weeks to reach a deal. As President Joe Biden and congressional leaders are in a high-stakes standoff over the debt limit, experts warn it would be catastrophic if leaders do not reach an agreement in time – and launch the economy into chaos.
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