#Treasury Secretary #Janet
Yellen AGAIN wrote to House Speaker #KevinMcCarthy today about the necessary Biden admin’s “extraordinary measures” to prevent the federal govt from breaching its #DebtLimit & hurtling toward #default, a grim scenario w/the potential to #DestabilizeMarkets & #devastate the #economy.
https://home.treasury.gov/system/files/136/Debt-Limit-Letter-to-Congress-20230119-McCarthy.pdf
She said there’s “considerable uncertainty” about how much room the measures will provide. “I respectfully urge #Congress to act promptly to protect the full faith & credit of the #UnitedStates,” #Yellen wrote.
https://www.washingtonpost.com/business/2023/01/19/debt-ceiling-default/
The problem with the administration's spin is that the Treasury has plenty of income to cover its debt obligations, which is is legally required to prioritize.
Default is not legally on the table, period. Such a choice would be flat out unconstitutional.
For the administration to be even suggesting that it would not service debts as they come due represents a real violation of faithful execution of the law, and they need to be called out on it.
Treasury has plenty of money to avoid default, so it must not choose to go that route.
