Will US Run Out of Money in October?

Will US Run Out of Money in October?

(RepublicanNews.org) – The national debt was an astounding $28.4 trillion in July and is growing every day. The US is reaching its debt ceiling, meaning it won’t be able to borrow any more money. Could the US truly be out of money come October?

Hitting the debt ceiling could spell disaster for the US as it defaults on its obligations. Congress has to act to avoid a financial catastrophe.

Democratic Decisions

House Speaker Nancy Pelosi understands the debt ceiling increase must happen, but she won’t move forward without Republican support. Some GOP leaders have suggested Democrats could make it part of their $3.5 trillion reconciliation bill. However, Pelosi spoke to reporters, asserting she doesn’t know where the debt increase will come from, but it won’t be part of the sweeping social spending reconciliation bill. Seemingly at an impasse, the Speaker will need to negotiate with the other side.

Republicans are urging their left-wing counterparts to pass the bill without their votes because they don’t support a debt increase. Senate Minority Leader Mitch McConnell indicates that conservatives shouldn’t raise the limit to finance Democrat spending. Pelosi and Senate Majority Leader Chuck Schumer both argued when President Trump needed the debt ceiling raised, the vote was bipartisan.

A Warning From the Treasury

Janet Yellen, US Treasury Secretary, warned Congress on September 8 if they don’t increase the debt ceiling, the US could run out of money as soon as October. Yellen admitted that she doesn’t have an exact timeline on how long the Treasury can fund the government. The Secretary said once the Treasury diminishes all its resources, the US would have no choice but to default on its obligations — something the nation has never done in its history.

According to Yellen, Congress raised the limit to avoid “irreparable harm” in previous years. The Treasury Secretary warned procrastinating until the last minute to increase or suspend the limit could seriously damage business and consumer confidence, a major driver of our economy.

Although Pelosi knows she needs to do something, she appears hesitant to take responsibility for a partisan solution. What if there is no other choice than to include a debt ceiling increase in the reconciliation bill? Will Democrats allow the US to default to preserve their $3.5 trillion social agenda? Or will they finally sit down and negotiate another solution with the GOP? Only time will tell, and we are quickly running out of that.

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