Repost from 6-25-2021
“Treasury Secretary Janet Yellen told a congressional panel Wednesday that failing to raise the federal debt ceiling would have ‘catastrophic consequences’ that could bring on a financial crisis.”
USAGOLD note: A shot across the bow for those who think the debt limit problem is a thing of the past. Lo and behold, it could instigate a default on U.S. debt obligations and a downgrade of the nation’s bond rating – an unwelcome development in a bond market already standing on shaky ground. Congress needs to act before July 31. Up until yesterday and Yellen’s comments, few knew the debt ceiling was a problem.