Analysts once again warned that the US might face a default. For the last decade, US citizens have become accustomed to getting such announcements and do not pay close attention to them. Meanwhile, foreign economists continue to publish their frightening forecasts.
Several times a year, the US national debt reaches a particular approved limit. This time, the limit is $31.4 billion. If the national debt exceeds it, the government will have to announce a default. That is why US officials raised the ceiling when the indicator approached this reading. Before that, the US Department of the Treasury started using the budget resources of two state funds to increase the amount of available cash and make state payments. The US Treasury Department also suspended contributions to pension and social funds and stopped the issuance of new debt obligations from January 19 to June 5. Treasury Secretary Janet Yellen asked Congress to act in a timely manner and raise the debt ceiling. Otherwise, the country will be unable to pay various social expenses, as well as debts and interest on the already assumed obligations. Janet Yellen also emphasized the necessity to “either suspend or increase the debt limit.” This will allow the government to continue to fulfill its financial obligations. “It is unlikely that cash and extraordinary measures will be exhausted before early June,” Yellen added.
