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According to new calculations, the US should run out of money to settle its obligations on June 5



Biden and McCarthy guarantee that the US will not go bankrupt

US Treasury Secretary Janet Yellen, who has been warning for several weeks that the government will run out of money to settle its obligations by June 1, announced on Friday that this will happen on June 5, according to new calculations.

President Joe Biden and the Republican Speaker of the House of Representatives Kevin McCarthy, who claim that the US will not default, are negotiating with their teams. Negotiations on raising the public debt ceiling gradually turned into negotiations on the budgets for 2024 and 2025.

If passed, the deal must be approved by members of both houses of Congress, who are on vacation for Memorial Day as the summer swimming season officially begins in the United States.

Both Biden and McCarthy guarantee that the US will not go bankrupt. As a last resort, Biden has the option of raising the cap arbitrarily under the 14th Amendment to the Constitution, which states that the creditworthiness of the United States cannot be called into question. However, he will only use this as a last resort, otherwise the budget for the next two years cannot be adopted.

Meanwhile, the rating agency Fitch Ratings issued a warning on the rating of the US, which remains at the highest AAAbut with the addition that it can be lowered.

The U.S. public debt currently stands at nearly $31.5 trillion. If the borders are not raised, pensioners, soldiers, police officers, health workers, teachers and foreign creditors, among others, could be left without money, which would cause international turmoil.

Source: Rtvslo

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