{"id":795462,"date":"2021-09-20T16:15:26","date_gmt":"2021-09-20T20:15:26","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=795462"},"modified":"2021-09-20T16:15:28","modified_gmt":"2021-09-20T20:15:28","slug":"yellen-says-failing-to-raise-federal-debt-limit-will-trigger-historic-financial-crisis","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/yellen-says-failing-to-raise-federal-debt-limit-will-trigger-historic-financial-crisis\/","title":{"rendered":"Yellen Says Failing To Raise Federal Debt Limit Will Trigger \u2018Historic Financial Crisis\u2019"},"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\">26<\/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%2Fyellen-says-failing-to-raise-federal-debt-limit-will-trigger-historic-financial-crisis%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=795462&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-258.jpeg?w=1200&amp;h=800&amp;ixlib=react-9.3.0\" class=\"ff-og-image-inserted\" \/><\/div>\n<p><span>Treasury Secretary Janet Yellen said that a \u201chistoric financial crisis\u201d may be triggered if Congress fails to raise the federal debt limit.<\/span><\/p>\n<p><span>Two years ago, Congress <\/span><a href=\"https:\/\/www.dailywire.com\/news\/congress-misses-debt-ceiling-deadline-treasury-starts-extraordinary-cash-saving-measures-to-prevent-debt-default\"><span>suspended<\/span><\/a><span> the debt ceiling \u2014 a measure that stops the federal government from taking on a certain level of national debt \u2014 until August 2021. After the policy expired, Yellen enacted \u201cextraordinary\u201d cash-saving measures to fund the federal government.<\/span><\/p>\n<p><span>In an op-ed published by <\/span><a href=\"https:\/\/www.wsj.com\/articles\/congress-raise-debt-limit-ceiling-yellen-treasury-brinkmanship-federal-budget-11632069056\"><span>The Wall Street Journal<\/span><\/a><span>, however, Yellen warned that the federal government will be unable to pay its bills as soon as next month unless Congress raises the debt limit:<\/span><\/p>\n<blockquote readability=\"18\">\n<p><i><span>In a matter of days, millions of Americans could be strapped for cash. We could see indefinite delays in critical payments. Nearly 50 million seniors could stop receiving Social Security checks for a time. Troops could go unpaid. Millions of families who rely on the monthly child tax credit could see delays. America, in short, would default on its obligations.<\/span><\/i><\/p>\n<p><i><span>The U.S. has never defaulted. Not once. Doing so would likely precipitate a historic financial crisis that would compound the damage of the continuing public health emergency. Default could trigger a spike in interest rates, a steep drop in stock prices and other financial turmoil. Our current economic recovery would reverse into recession, with billions of dollars of growth and millions of jobs lost.<\/span><\/i><\/p>\n<\/blockquote>\n<p><span>Yellen noted that the United States\u2019 high degree of creditworthiness \u2014 investors\u2019 expectation that the federal government will repay its obligations \u2014 has been the basis for its rapid economic expansion:<\/span><\/p>\n<blockquote readability=\"13\">\n<p><i><span>We would emerge from this crisis a permanently weaker nation. For about a century, America\u2019s creditworthiness has been a major advantage over our economic competitors. We can borrow more cheaply than almost any other country, and defaulting would jeopardize this enviable fiscal position. It would also make America a more expensive place to live, as the higher cost of borrowing would fall on consumers. Mortgage payments, car loans, credit card bills \u2014 everything that is purchased with credit would be costlier after default.<\/span><\/i><\/p>\n<\/blockquote>\n<p><span>The Biden administration recently <\/span><a href=\"https:\/\/www.dailywire.com\/news\/biden-admin-warns-states-that-federal-debt-crisis-could-trigger-recession\"><span>warned<\/span><\/a><span> states that a default on the national debt would throw the nation into recession, threatening the solvency of the Children\u2019s Health Insurance Program, disaster relief efforts from FEMA, and $100 billion in infrastructure funding \u2014 all of which are at least partially funded by the federal government.<\/span><\/p>\n<p><span>Earlier this year, Wall Street began showing renewed skepticism toward the federal government\u2019s ability to repay its obligations. 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 expanding federal debt. Though the United States kept its \u201cAAA\u201d rating, Fitch said that the outlook \u201creflects ongoing risks to the public finances and debt trajectory.\u201d<\/span><\/p>\n<p><span>The current national debt is $28.7 trillion.<\/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>Treasury Secretary Janet Yellen said that a \u201chistoric financial crisis\u201d may be triggered if Congress fails to raise the federal debt limit.Two years ago, Congress suspended the debt ceiling \u2014 &#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-795462","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\/795462","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=795462"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/795462\/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=795462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=795462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=795462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}