Treasury Secretary Janet Yellen has announced the U.S. debt ceiling is likely to be reached mid-January, while Joe Biden is still in office. President Trump tells congress to deal with the issue now.
First, here’s Secretary Yellen:
WASHINGTON, Dec 27 (Reuters) – The U.S. Treasury Department may need to take “extraordinary measures” by as early as Jan. 14 to prevent the United States from defaulting on its debt, Treasury Secretary Janet Yellen told lawmakers in a letter on Friday.
Yellen urged lawmakers in the U.S. Congress to act “to protect the full faith and credit of the United States.”
U.S. debt is expected to decrease by about $54 billion on Jan. 2 “due to a scheduled redemption of nonmarketable securities held by a federal trust fund associated with Medicare payments,” she added.
She said: “Treasury currently expects to reach the new limit between January 14 and January 23, at which time it will be necessary for Treasury to start taking extraordinary measures.”
Under a 2023 budget deal, Congress suspended the debt ceiling until Jan. 1, 2025. The U.S. Treasury will be able to pay its bills for several more months, but Congress will have to address the issue at some point next year. (more)
The Biden spending is already baked into the proverbial cake. Congress will have to raise the debt ceiling limit and President Trump is urging them to do it now, before he takes office.
[SOURCE]
Specifically, because 38 republicans voted against the 2nd continuing resolution earlier this month, President Trump will face this debt ceiling mess on day one if it is not addressed before. They republicans knew this reality when they voted no.
Now President Trump is trying to avoid a potential mess early in his administration. No amount of spending cuts are going to stop the previously authorized spending. We are still going to hit the debt ceiling regardless of action from within the House to downsize government. Congress can freeze all spending, and we will still hit the debt ceiling.
It certainly looks like a crew of House republicans knew this would hamstring President Trump, and measures to avoid default are going to be needed.
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Careful, you’ll blow out the margins!
It blew out my margin.
Money talks, then.
If only we had elected President Harris to unburden what has been….
Why do I have the feeling crapweasel congresscritters are going to address this the day before default and stick us with another massive bill not germane to the debt ceiling?
Feeling? Demonstrable record pattern
In this case it’s leverage over president Trump’s first days agenda. It is intended to force him to deal with congress and to back off from his doge efforts.
The trillion dollar question?
Does President trump call the bluff and let the entire deficit run completely out of control.
Noting: there are some who are asserting that the likes of Elon, Vivek and thiel WANT the dollar to crash…it provides an immediate opening to push a crypto alternative.
Just things I read
God Bless America
It was a rhetorical question.
AS I have said again and again, the elected President should be sworn into office within 20 days of the election. Hell, the corrupt-o-crats are making me think it should be within a week.
Sundance is no longer my go to for information. He must be regretting that Kammie lost.
I see no use in your last snide comment.
The last snide comment was the reason for the entire post.
What?
You drinking already or something?
Crypto is a ponzi. It’s Rat Poison Cubed.
Ok. So what? I still made a boatload of loot off of it. You could have too. Unless you don’t like doubling or tripling your investment in a year or less.
Fiat currency ie our current $$$ system, “is a ponzi. Its Rat Poison Cubed”.
As intended.
Are Elon and Vivek in charge now? I thought I voted for Trump.
Because that’s what they do
Now you can see what the UniParty is all about! They shiv-a-git less about America!
The reality is that Washington has their filthy hands in our wallets and they refuse to take it out.
Politicians are willing to use any slimy tactic to remain in control.
Approve massive spending,
Patiently waiting for the kickbacks ,pardon me, political contributions and then do it again.
Wash ,rinse ,repeat.
We honest citizens can’t fathom being a part of such fraud and deception.
I really don’t see how this can end well for the honest working man.
Trump can only do so much and the fraudsters know this.
Sometimes I wish I had it in me to be such a lowbrow character .
Life would be so much easier.
Then I look at the Bidens and come to my senses.
I than God for that.
I don’t wonder if this is some sort of tactic, anticipating a huge rebound of the economy and people working and receiving a higher wage during the Trump admin?
Spending money before its even earned…somewhere that is a line in a song….LOL.
We need Trump to start firing people left and right! He only has 4 years and we saw what the turds in Congress did in term 1! Trump needs to see a helluva lot of dirtied underwear!
That mechanism to reach “their filthy hands in our wallets” is the IRS Tax Code! “Business Insider (2014) reports that the U.S. tax code grew to 71,684 pages long in 2013,”!!! Not only do they tax our hard earned dollars but if you make a mistake filing your income taxes you are fined a penalty and interest! It’s almost as if those in Congress don’t represent, like or trust us We The MAGA People!!!???
There seems to me to be a far too disproportionate interest in the outrageous pork barrel spending of Congress than the way they fund their salaries and spending! Why do we need a full time Congress? Make being a Senator or Representative a part time job with a part time salary meeting twice a year??? Not only have term limits for members but have sessions of Congress limits! Have Congress meet twice a year not to exceed 30 days per session! The rest of the year they can stay home and represent! Silly all of it but in my dreams! JMO
Congressman’s sponsors certainly will never allow the graft to ever stop. They are those that believe themselves a cut above and know how to spend your money better then the ones who earned it.
Seize Congress assets.. this mess occured under their Stewardship.. if they ran the Nation dry, no ***king way do they get to sit on their fat ass piles of cash and toys.
If they want non participation protests outside their vacation homes and their offices and family businesses and all over the District Of Criminality on Day One they (Congress) are going about it the right way.
We didn’t suffer the last four years to get fuct by the likes of these “people”..
Oh yeah seize that “pumpkin pie haircutted freak” Yellens I’ll gotten gains first!
Come on, this and all the other crapola is planned to hamstring President Trump. There are landmines everywhere.
How do we legally hamstring them?? If there are major Election reforms most of these jokers are gone in ‘ 26 and they damn well know it
Reforms, passed by whom? This Luciferian crowd?
Yellen and this corrupt illegal administration has been cooking the books for the past four years. The Uniparty has allowed them to get away with it. Massive Fraud against We the Taxpayers!
“The Bond Markets Are Revolting” – Ed Dowd Exposes Biden Admin’s “Incompetence… Or Fraud””
https://www.zerohedge.com/markets/bond-markets-are-revolting-ed-dowd-exposes-biden-admins-incompetence-or-fraud
RINO’s, all of them. I can count on one hand the real MAGA members of congress and have fingers left over. I honestly don’t know the solution other than a complete house cleaning. Not sure if we have the time for that before this country is lost completely.
Not often do I comment, but I read every comment. Been here so long I have lost track of the years. When I first started reading here, Sundance would only have 10 or 12 comments. All we can do is pray to the Good Lord that He save this wonderful country.
Amen,SB
Continues to confirm my belief that most Republicans are Democrats. No Democrats are Republicans.
If God did not spare degenerate Israel from plunder, he sure won’t spare us. The land cries out for a purge and relief from American bloodshed.
What these 2D cutouts in DC do doesn’t determine our standing with God. They will fail us but that’s not the question. Will we fail ourselves?
The world government is constructed to reap off the residents and heap it on to the lords. There isn’t one person in Babylon DC who is untainted by the inherent influence and status those positions bring. Trust NO ONE there, human nature is bent to exploit that power.
👌✝️👌
The irreconcilable H1b dispute, the loss of Matt Gaetz, and now the shifting of the debt ceiling onus unto the shoulders of the incoming Trump administration are all attempts by the venal opposition to derail the MAGA movement. Let’s make sure we support President Trump like no other president before.
Last I checked each and every conflicted person in the upcoming admin was from Trump. Which Trump are you supporting? I want Campaign Trump, J6-pardoning Trump, H1B-killing Trump. Who knows which one we’ll get come 2025.
He simply can’t run it as we hoped. Corners have to be cut and investors pleased. If Elon brought benefits to the campaign, he’ll expect set-asides in return. If we turn against Elon, much of the MAGA energy and promise we felt will be gone, as DOGE will become a bug and not a feature. H1B will be a slap in our face. Basically, Team R is on the verge of a split that will lead us to 2018 2.0.
The blunder with Gaetz was a huge unforced error. It felt like a headfake to get him out of Congress.
How about getting rid of the Democrats and RINOs!
Debt Clock
https://www.usdebtclock.org/
Tax FILING time
DO NOT COMPLY .
(Period)
Oh How I wish we were that united and informed.
What a clown show!
“What a clown show!”
Who’s leading this clown show?
“I respect and support President Trump but I’m voting no” on what he wants” Reps Massie and Chip.
Thank goodness they’re so super duper “supportive”. and so super duper ” principled.
Thankfully these “supporters” reveal themselves through accusation projections.
Example?
Rep Massie just accused someone else of being a “Paul Ryan” tier Trump betrayer…..
after learning that President Elect Trump is asking ALL Reps to vote FOR Mike Johnson as House Speaker in the upcoming, pre 47th President certifying, vote. Consequently, Rep Chip, dispute how much he respects and supports President Trump will vote AGAINST him.
“
And we thought the Uniparty didn’t have an insurance policy for this term?
This isn’t the only one………more to come.
Imagine that! And Yellon, just now notices this 2-3 weeks before it happens? Sure, I believe!
I wondered why the “Debt to the Penny” site run by the US Treasury Fiscal Data center showed a huge “slow down” in the quickly rising debt this month compared to the 2 previous months in fiscal 2025. (12/2 = $36.171 Trillion, 12/26= $36.113 Trillion.) I should have known, as they always magically do that when the debt is about to hit the limit.
The ObamaBidenHarris administration was spending as much as possible to try to buy the election during the past few months.
Now they are spending as much as possible to hamstring Trump. Another $6B sent to Ukraine to be set on fire. More student debt cancellations to burn more cash. They are basically lighting fire to huge piles of cash.
That snow owl looking freak should have her bank accounts seized with the rest of congress in order to put towards the debt. These people are criminals.
Yes.
Attacking conservatives who are trying to hold the line on spending is the same thing that was done to the tea party.
Keep on and get yourself eight years of Newscum.
Yellen has never been a good economist and I can’t stand the sight of the ugly woman.
And older than dirt! (I am no spring chicken) I asked my kids and grandkids if they think Janet Yellon was sad when Confederate money went out. How are these fossils running anything??? grrrrr
Really nice that she brings this up at the last moment… makes you wonder if she was really paying attention or going along to get along…?
And our dear RINO’s just waiting in the shadows to cause havoc…
The Uniparty has laid out a banquet of consequences which President Trump and all of us will have to eat.
The Speaker (President Trump’s “friend” and a ” good man”) is, among too many others, is culpable.
There is no honour in the House (of ill repute).
As for Yellen, she is the pin up girl for… and just one of a never ending conga line of those who are living breathing examples of…the”kleptocracy” which defines the government we have been living under for decades. Sooner or later the bills come due.
And here we are…
I am not going to eat that !@#$ sandwich they will proffer. There are always other choices that can be made, and I am not going to settle for one of their given options.
Good man, R F.
We’ve fired the old chefs.
God be with our new one 🙏🏻
Trending
Donald J. Trump
@realDonaldTrump
We are the Party of COMMON SENSE, a primary reason that we WON, in a landslide, the magnificent and historic Presidential Election of 2024. ALL SEVEN SWING STATES, 312 ELECTORAL COLLEGE VOTES, AND THE POPULAR VOTE BY MILLIONS OF VOTERS (Despite large scale voter fraud taking place in numerous states, including California, where votes are ridiculously still being counted, or under review!), ALL WON WITH EASE, CALM, & PROFESSIONALISM. Republicans are being praised for having run a “legendary” campaign! Democrats are being excoriated for their effort, having wasted 2.5 Billion Dollars, much of it unaccounted for, with some being used to illegally buy endorsements ($11,000,000 to Beyoncé, who never even sang a song, $2,000,000 to Oprah for doing next to nothing, and even $500,000 to Reverend AL, a professional con man and instigator, who agreed to “interview” their “star spangled” candidates, Kamala and Joe). We ran a flawless campaign, having spent FAR LESS, with lots of money left over. They ran a very expensive “sinking ship,” embracing DOJ & FBI WEAPONIZATION against their political opponent, ME. BUT IT DIDN’T WORK, IT WAS A DISASTER!!! LETS NOT BLOW THIS GREAT OPPORTUNITY WHICH WE HAVE BEEN GIVEN. The American people need IMMEDIATE relief from all of the destructive policies of the last Administration. Speaker Mike Johnson is a good, hard working, religious man. He will do the right thing, and we will continue to WIN. Mike has my Complete & Total Endorsement. MAGA!!!
1.15k
ReTruths
3.74k
Likes
That is one thing that I cannot stand with PDJT on.
Johnson is a crook, thief, liar and backstabber. He is a Demorat, parading as a Republicant….
I do not understand these statements by the President. I know most of us out here cannot reconcile his comments, while that joke of a Speaker is constantly screwing Americans over.
Make it make sense!
His lavish praise on the guy who FIRST negotiated with Hakeem and Schumer, writing a budget of 1500 pages under the ruse of a CR, then dropped the schit bill on his own party to eat… that’s a “good man”?? Johnson’s religion is a means to an end. Just stop it, PDT, it’s embarrassing.
Johnson is not only everything you mentioned but he is also WEAK – not worthy of his job or any job in the government.
Way to go, Janet. You finally earned your
salaryblood money.Well, there is now an emergency rationale to deconstruct the executive branch’s bankrupt agencies. Department of Education? Closed. EPA? Permanently furloughed until fiscal stability has arrived. ATF? What’s the purpose? Closed.
Medicare? Stopped until all medical charges by providers are single price and insurance becomes a third party post payment reimbursement subscription program. Go on down the list.
Crisis or Opportunity? It’s all a matter of perspective.
This means the Biden chickens will come home to roost. Get ready for inflation to kick in as Trump spends to keep this crapile afloat. And just look at the bond market rebelling. The bond inversion is correcting with the 10 year heading toward 5%. This is a very big deal with our Argentina debt to GDP. SD should do an article on the coming financial mess the Biden coup is leaving Trump.
This was always going to happen. The socialists and their uniparty compatriots are doing everything they can to stymie PDJT47 in preparation for ’26 midterms.
It’s always about the $&@ midterms. That is ALWAYS Team R’s obsession.
Sounds like a great opportunity to slash the size of the Federal Government out of dire necessity. Just reduce expenditures below tax receipts and the debt ceiling is moot. An across-the-bloated-bureaucracy 50% spending moratorium may actually hurt much less than we think…
Last I knew the Federal Government counts spending as contributing to GDP. Propping up GDP numbers with government spending does not end well.
There’s a co-inky-dink!
We’re broke. Time to DOGE most of DC.
DOGE? Pffft. What a bunch of frauds.
Babylon on the Potomac will never function as constructed. You don’t need democrats to eff up things, Team R is ready to abandon us anytime they can. They have seen the last donation from me, and I don’t care what banner they campaign under.
The first step in this crisis is to eliminate the fed, which creates debt and inflation without legislative accountability. Our representatives can create debt and inflation, if need be, but, if we disagree with the policies then we vote them out of power within the context of the Constitution. Plus, the representatives and their family cannot profit off of debt and inflation on the Fed end. We see them making money off of incredibly, preternaturally accurate stock picks. Can you imagine what lucrative financial machinations they have on the Fed end, the private end which is outside of FOIA requests?
We need to end the fed, end H1B, close the border, and try the traitors in an open and fair court.
I have had it. No more. No compromise.
So, what are the extraordinary measures Yellen mentions? Is there some deep reverse psychology plot by team Trump who said they want the debt limit raised, knowing full well it would then not happen? Did Trump actually NOT want the debt limit raised in order to give him more authority to drastically reduce the budget? Were the few republicans who voted no in on the strategy?
I’m full of Hopium that Yellen will attempt to put economic handcuffs on Trump that will backfire bigly for these leftist scum..
When Janet Yellen talks about extraordinary measures, she’s saying the Treasury will use temporary workarounds to keep the government running without borrowing more money. I think they reported on Bloomberg we have enough runway until June.
The extraordinary measures Yellen mentions are basically temporary accounting tricks to keep the government running without borrowing more money. She can suspend investments in federal retirement funds, delay payments, and shuffle money around to stay under the debt ceiling for a while.
As for the reverse psychology plot, it’s entirely possible. Trump is playing like Br’er Rabbit . This fits his style. If he publicly says he supports raising the debt limit, but knows there’s enough resistance in Congress to stop it, that could give him the cover to say, “Hey, I tried, but now we have no choice but to cut spending drastically.” It forces a crisis where he could push for massive budget cuts and frame it as being necessary because Congress didn’t act.
The idea that Trump didn’t want the debt limit raised so he could leverage the situation to slash government spending actually lines up with his history of brinkmanship, like with Rocket Man of North Korea or China. He thrives in chaos and likes forcing big, dramatic changes.
They would have to cut Federal Expenditures by $1.41 trillion to continue operations. That is a dramatic change for sure.
There’s a lot of internal account shuffling that can be done. For example, agencies have to take expenses for accrued pension liabilities, and that “expense” gets transferred to another account, so no real cash flow.
But IMO the whole “default” thing is theater. Treasury could just sit on their AP accounts and make whatever interest they have to.
With reductions of these amounts totaling $1.41 trillion, the budget is balanced, and there’s no need to increase the debt ceiling. The U.S. government would be operating entirely within its revenue limits without requiring additional borrowing.
Category: Current Amount – Cut Amount = Post-Cut Spending:
Defense: $850 billion – $170 billion = $680 billion
Federal Workforce: $300 billion – $60 billion = $240 billion
Subsidies: $150 billion – $150 billion = $0 billion
Social Security: $1,300 billion – $200 billion = $1,100 billion
Medicare and Medicaid: $1,700 billion – $170 billion = $1,530 billion
Federal Student Loan Program: $130 billion – $130 billion = $0 billion
Discretionary Spending: $1,100 billion – $110 billion = $990 billion
Inefficiencies and Programs: $20 billion – $20 billion = $0 billion
Total: Federal Expenditure Cuts = $1.41 trillion. No Tax Cuts or Increases. No borrowing.
Total Remaining Expenditures: $4.54 trillion
Time to join the late Rush and move to Realville.
I am pretty sure that Realville is down the road from Dr. Pepper Fansville.
seriously, I guess the point you seem to be missing is there is another option other than raising the debt ceiling. And that is to cut, cut, cut.
But, as long as we will accept the government always running trillion dollar deficits as being “Realville” nothing will ever change.
Thanks for your service.
The debt ceiling is a joke. It never restricts spending, Congress just raises it every time. It’s only useful as a cudgel to force even more wasteful spending.
I am surrounded by people who just want to know how the College or Pro football teams are doing in the standings, complain about the price of food, fuel, & other commodities, and other such trivial pursuits.
At the same time , they have NO DOGGONE CLUE about how these UNIPARTY A-holes are screwing over everyone so that the RINOs & Demshoviks STILL get their Piece of the Pie they ave cut out for one another for DECADES.
I would love to know how to fix the issue/problem, but until the “masses” pull their head out of their asses…
Things are gonna likely remain the same…
Doggonit…. Same story year after year.
Bread & circuses…
GOD Bless Us as we ALL need that~!
Start naming names so we get rid of the slop! Thirty eight Republicans need primaried! They’re “effing” RINOs anyway!
Obozo’s turd term is ending just as the Cloward-Piven demofascists intend.
Yellen made sure to roll-over maturing federal bonds into all short-term T-Bills, instead of issuing longer term Treasury Bonds back before the interest rates started going up.
She missed a once-in-an-economic-cycle opportunity to lock in the lower interest rates on Trillions of dollars of federal debt before the rates jumped.
This abusive relationship with our government gets worse by the day. Clearly they know no shame.
cross posted at https://freedomaustralia.freeforums.net/thread/6550/secretary-yellen-announces-ceiling-reached