“In a letter to key congressional officials, Janet Yellen said the debt ceiling, currently slightly above $36 trillion, “does not authorize new spending.”
The American Department of Finance will take “extraordinary measures” starting January 21 in order to continue to meet its debt maturities, announced Friday the outgoing Secretary of State of the Treasury, Janet Yellen.
In a letter to key Congressional officials, Janet Yellen said the debt ceiling, currently slightly above $36 trillion, “does not authorize new spending.”
“Extraordinary measures” will therefore be taken starting January 21, the day after the inauguration of President-elect Donald Trump.
These measures concern the cessation of payments to several pension, health or disability funds for public employees – technical adjustments “which are not immediately necessary for the payment of benefits”.
“The United States will not default on its debt if I am confirmed” as new Treasury Secretary, Scott Bessent, Donald Trump’s choice for this post, told senators on Thursday.
What if Trump didn't raise the debt ceiling… to force a reduction in the size of the federal government?
To rebalance public accounts, while continuing to reduce taxes, the president-elect promises to slash federal government spending and is counting on revenue from the additional customs duties he wants to put in place.
And this is where we could experience the first surprises of a period that promises to be perhaps extraordinary.
Trump, like Vance or Elon Musk, does not reason “on average”, they do not reason “at constant perimeter plus 1 or 2%”.
They are transgressors.
They solve problems, and to truly solve a problem you rarely have to make more of the same mistake that leads to the problem in question.
-There needs to be a break.
We could therefore imagine that this increase in the ceiling, or not, is an opportunity to put public spending on the table once and for all and with Musk at the Ministry of Government Efficiency, don't expect any stringing of pearls , or… lukewarmness.
Charles SANNAT
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Source AFP via BFM ici
