I can't stand it anymore! U.S. Congressional Budget Office: Debt default will occur as soon as July

　　China News Service, February 16 (Xinhua) Comprehensive US media reports, the US Congressional Budget Office said on the 15th local time that if Congress fails to solve the debt ceiling problem as soon as possible, the Treasury Department will lose the ability to continue paying bills sometime between July and September. and the ability to prevent default on U.S. debt.

Data map: U.S. dollars.

　　The U.S. hit its $31.4 trillion legal borrowing limit in January, the New York Times reported, and the Treasury Department had to take a series of extraordinary measures to keep the government afloat and help it keep paying its bills without violating debt limits .

　　The extraordinary measures include redemptions of existing investments and a moratorium on new investments in public servants' pensions, postal service retiree health benefit funds and disability funds.

　　The Congressional Budget Office said in a Feb. 15 report that the government will struggle to continue meeting its obligations if the debt ceiling is not addressed before special measures are exhausted.

"As a result, the government has had to defer payments for certain activities, or default on its debts, or both," the office said.

　　In a speech on the 15th local time, Treasury Secretary Yellen warned that a debt default would have "catastrophic" consequences.

　　"In my assessment -- and the assessment of all economists -- our debt default would be economic and financial catastrophe," Yellen told the National Association of Counties legislative session.

"Household payments on mortgages, auto loans and credit cards will rise. Deteriorating credit markets will also affect U.S. businesses."

Data map: U.S. Treasury Secretary Yellen.

　　Yellen called on Congress to act quickly, adding: "This disaster is preventable."

　　But according to CNN, so far, Republicans in the House of Representatives and President Biden are still clearly divided on the issue of the budget cap, with little progress.

The former calls for spending cuts to raise the debt ceiling, while the latter calls for negotiations to cut spending rather than hold the debt ceiling as a tied "hostage."

　　CNN pointed out that the report of the Congressional Budget Office shows that Biden and Congress are facing enormous difficulties in strengthening the country's finances.

　　The office released the budget and economic outlook for the next 10 years, saying that the future federal budget deficit and debt of the United States will increase significantly, and that the economic growth of the United States is slowing down and the fiscal situation has deteriorated.

　　According to the Congressional Budget Office, the U.S. budget deficit will reach $1.4 trillion in 2023, accounting for 5.3% of U.S. GDP, and will grow to 6.9% by 2033.

　　According to previous reports, if the United States really defaults on its debt, it may trigger a "butterfly effect".

　　For example, the people at the bottom who live on government subsidies are in trouble, exacerbating the economic chaos of the United States itself, causing investors to worry about selling US treasury bonds, which will damage the credibility of the United States and reduce the status of the US dollar as a global reserve currency or "safe haven asset". Ultimately, it will exacerbate the turmoil in the global financial market and drag down the recovery of the world economy.