As I See It
Debt default decidedly disastrous
Never before in the history of the United States has the nation defaulted on its debt. Yet, because of the failures of our elected officials, a default could happen in a matter of days. Treasury Secretary Janet Yellen warns the nation could default on its obligations as soon as June 1 if Congress does not act to raise the limit, leading to severe economic consequences. What kind of consequences? Massive turbulence in our financial markets, with Americans losing perhaps one-third of the value of their investments. We would enter a global recession, and job losses would be widespread. In short, an economic disaster. The good news is it is preventable, and more talks are scheduled today between President Biden and House Speaker McCarthy. But no talks were held over the weekend, and it is estimated a deal will need to be made yet this week in order to have time to vote to approve the package before a possible default. Both sides in the debate will likely have to agree to give up something in order for a deal to get done. It is critical that happen, and sooner rather than later. Or our elected officials will have failed us yet again.