A ticking time bomb in the US economy is dangerously close to detonation.
Long considered a harbinger of bad luck, Friday, January 13, came with a warning to Congress that the country could default as early as June.
With the US hitting the $31.4 trillion debt limit on January 19, Treasury Secretary Janet Yellen urged lawmakers to raise or suspend the debt ceiling.
Her plea was taken by celebrity investor and market commentator Peter Schiff as an “official acknowledgment that the US is running the largest Ponzi scheme in the world.”
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A political stalemate over the debt ceiling has been raging since Republicans regained control of the House of Representatives in the 2022 midterm elections.
President Joe Biden pleaded with Congress not to hold the item hostage, suggesting a default could be “disastrous.”
His warnings have fallen on deaf ears in the case of opponents of the Republicans, who are using their extension votes as leverage to pursue spending cuts.
The Treasury can use “extraordinary measures” in the coming months to cover its many financial obligations, including Social Security and Medicare payouts, but these emergency funds are limited.
In the end, the US just needs to borrow more money, as it has done so many times before.
Congress has set the limit on federal borrowing…
