The United States Government is likely about to go into deep debt, according to Treasury Secretary Janet Yellen. On Tuesday, Yellen warned lawmakers that the federal government is going to run out of money by October 18, 2021, if nothing is changed to increase the debt calling by Congress.
This news, which has been reported by CNN and other sources, would be disastrous, damaging the economy significantly and delaying payments to millions of Americans.
“It is uncertain whether we could continue to meet all the nation’s commitments after that date,” said Yellen in a letter.
Matt McClain-Pool/Getty Images — Treasury Secretary Janet Yellen
The October 18 deadline is simply an estimate for right now, but it comes after the average daily governmental cash flow reached over $50 billion this past year.
“It is important to remember that estimates regarding how long our remaining extraordinary measures and cash may last can unpredictably shift forward or backward,” said Yellen. “This uncertainty underscores the critical importance of not waiting to raise or suspend the debt limit. The full faith and credit of the United States should put at risk.”
Robert Alexander/Getty Images
This is pretty serious news, and some people are asking why the government can’t simply print more money. Of course, that’s just not how the world works. We will keep you updated as this story develops.