{"id":608479,"date":"2021-08-02T12:06:40","date_gmt":"2021-08-02T16:06:40","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=608479"},"modified":"2021-08-02T12:06:41","modified_gmt":"2021-08-02T16:06:41","slug":"congress-misses-debt-ceiling-deadline-treasury-starts-extraordinary-cash-saving-measures-to-prevent-debt-default","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/congress-misses-debt-ceiling-deadline-treasury-starts-extraordinary-cash-saving-measures-to-prevent-debt-default\/","title":{"rendered":"Congress Misses Debt Ceiling Deadline, Treasury Starts \u2018Extraordinary\u2019 Cash Saving Measures To Prevent Debt Default"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcongress-misses-debt-ceiling-deadline-treasury-starts-extraordinary-cash-saving-measures-to-prevent-debt-default%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=608479&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/04\/fb_image-1146.jpeg?w=1200&amp;h=800&amp;ixlib=react-9.0.3\" class=\"ff-og-image-inserted\" \/><\/div>\n<p><span>Congress failed to amend the debt ceiling suspension, forcing the Treasury Department to fund the federal government through \u201cextraordinary measures.\u201d<\/span><\/p>\n<p><span>As <\/span><a href=\"https:\/\/www.dailywire.com\/news\/yellen-tells-congress-to-take-extraordinary-measures-to-avoid-debt-crisis\"><span>The Daily Wire<\/span><\/a><span> reported, Treasury Secretary Janet Yellen urged House Speaker Nancy Pelosi (D-CA) on July 23 to protect \u201cthe full faith and credit of the United States\u201d by extending Congress\u2019 2019 suspension of the debt ceiling \u2014 a measure that stops the federal government from taking on a certain level of national debt. Congress, however, missed the Saturday deadline to extend the suspension.<\/span><\/p>\n<p><span>According to Yellen\u2019s letter to Pelosi:<\/span><\/p>\n<blockquote readability=\"22\">\n<p><i><span>If Congress has not acted to suspend or increase the debt limit by Monday, August 2, 2021, Treasury will need to start taking certain additional extraordinary measures in order to prevent the United States from defaulting on its obligations.&nbsp;&nbsp;<\/span><\/i><\/p>\n<p><i><span>The period of time that extraordinary measures may last is subject to considerable uncertainty due to a variety of factors, including the challenges of forecasting the payments and receipts of the U.S. government months into the future, exacerbated by the heightened uncertainty in payments and receipts related to the economic impact of the pandemic. Given this, Treasury is not able to currently provide a specific estimate of how long extraordinary measures will last.&nbsp; However, there are scenarios in which cash and extraordinary measures could be exhausted soon after Congress returns from recess. For example, on October 1 alone, cash and extraordinary measures are expected to decrease by about $150 billion due to large mandatory payments, including a Department of Defense-related retirement and health care investment.<\/span><\/i><\/p>\n<\/blockquote>\n<p><a href=\"https:\/\/www.cnbc.com\/2021\/08\/02\/treasury-to-invoke-extraordinary-measures-as-debt-ceiling-returns.html\"><span>CNBC<\/span><\/a><span> reports that the Treasury Department should be able to fund the government for two or three months without taking on new debt. If Congress does not act, however, the United States may risk defaulting on its debt for the first time in history.<\/span><\/p>\n<p><span>\u201cThe government needs to have funds, for example, to pay interest on its debt, and if it were to stop paying interest that could be extremely unsettling for financial markets,\u201d Harvard University economist Karen Dynan told the outlet.<\/span><\/p>\n<p><span>Beyond the politics surrounding the debt ceiling, Wall Street has shown renewed skepticism toward the federal government\u2019s ability to repay obligations.<\/span><\/p>\n<p><span>Fitch Ratings \u2014 one of the \u201cBig Three\u201d rating agencies on Wall Street \u2014 <\/span><a href=\"https:\/\/www.dailywire.com\/news\/pointing-to-national-debt-ratings-agency-issues-negative-outlook-for-us-aaa-creditworthiness\"><span>issued<\/span><\/a><span> a \u201cNegative Outlook\u201d on the United States\u2019 creditworthiness due to ballooning federal debt. Though the United States retained its \u201cAAA\u201d rating, Fitch said that the outlook \u201creflects ongoing risks to the public finances and debt trajectory.\u201d<\/span><\/p>\n<p><i><span>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <\/span><\/i><a href=\"https:\/\/www.dailywire.com\/subscribe\"><i><span>member<\/span><\/i><\/a><i><span>.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Congress failed to amend the debt ceiling suspension, forcing the Treasury Department to fund the federal government through \u201cextraordinary measures.\u201dAs The Daily Wire reported, Treasury Secretary Janet Yellen urged House &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"close","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-608479","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/608479","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=608479"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/608479\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=608479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=608479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=608479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}