Study: U.S. Could Default on Debt as Early as Summer
The United States will run out all existing funds within seven months unless Congress increases the debt ceiling. This was confirmed by a bipartisan group on February 22.
The “X Date” According to the Bipartisan policy Center (BPC), it’s not possible to predict with certainty when the government might have to start delaying payments. But, it will likely happen in the summer or early fall 2023.
“Today’s X Date range reflects, in part, the considerable uncertainty in our nation’s current economic outlook,” said Shai Akabas, the BPC’s director of economic policy.
“Policymakers have an opportunity now to inject certainty into the U.S. and global economy by beginning, in earnest, bipartisan negotiations around our nation’s fiscal health and taking action to uphold the full faith and credit of the United States well before the X Date.”
Akabas’s findings confirm the February 15 projection by the Congressional Budget Office.
“If the debt limit remains unchanged, the government’s ability to borrow using extraordinary measures will be exhausted between July and September 2023,” Phillip Swagel, CBO director, stated.
The debt ceiling, which is the legal limit on the amount of debt that the government can have at one time, is the statutory limit. Current ceiling: $31.4 trillion. It was established by Congress in 2022.
This limit would have been exceeded on Jan. 19, if U.S. Treasury Secretary Janet Yellen didn’t take “extraordinary measures” to ensure that the country is solvent until June.
Swagel stated that the country would need to take additional measures to keep it below the limit, possibly until July or September depending on how much tax revenue is received in the spring.
Kevin McCarthy, House Speaker (R-Calif.), has stated that Congress will not consider raising its debt ceiling without making concessions to Democrats on future spending.
President Joe Biden stated repeatedly that he won’t negotiate over the debt ceiling, because failing to raise the limit would result in the loss of the presidency. “full faith and credit” United States at Risk
Both sides have repeatedly stated that they won’t consider Medicare or Social Security changes in the resolution of the impasse.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
