WASHINGTON (Reuters) -U.S. Treasury Secretary Janet Yellen said on Friday that the United States will likely hit the $31.4 trillion statutory debt limit on Jan. 19, forcing the Treasury to launch extraordinary cash management measures that can likely prevent default until early June.
“Once the limit is reached, Treasury will need to start taking certain extraordinary measures to prevent the United States from defaulting on its obligations,” Yellen said in a letter to new Republican House of Representative’s speaker Kevin McCarthy and other congressional leaders.
She urged the lawmakers to act quickly to raise the debt ceiling to “protect the full faith and credit of the United States.
You can’t cut spending or raise taxes, that’s not the American Way. Seriously, half the population doesn’t pay income tax and a huge percentage takes money and services from the government. There is no way out.
I think they should raise taxes. Let them feel the wrath of the voters come election day for their out of control spending.
The problem is whoever votes to raise taxes will get the wrath and the voters will vote in politicians who can give them more money without taxing them and we are back to the same place.
If they cut programs the incumbents can blame those who came before them. However in the fall, candidates will promise to restore those same programs just to get elected.
I believe we are seeing the falling of an empire as many have gone broke in past history. The western world’s values are changing and words are being redefined faster than I can keep track of. We are going to imploded on our own debt and we are going to redefine the words to make everybody think that it is ok until people are starving.
Does it make sense that when Congress passes legislation to spend money that the debt ceiling should automatically be raised? What am I missing?