United States May Suffer An Economic Catastrophe On Oct 19

• Yellen had warned lawmakers earlier this week that if Congress fails to raise, the federal government will exhaust extraordinary measures by October 18

The United States could be just weeks away from defaulting on its debt for the first time ever.

The $28.4 trillion debt limit was reinstated August 1. Since then, Treasury Secretary Janet Yellen has been keeping the nation’s finances afloat by using emergency accounting maneuvers also known as “extraordinary measures,” allows the government to borrow additional funds without breaching the debt ceiling.

But Yellen warned lawmakers this week that if Congress fails to raise, or suspend, the debt ceiling, the federal government will exhaust those extraordinary measures by October 18.

Read also: United States Will Be Broke By October 18 – Govt Official Raises Alarm

“At that point, we expect Treasury would be left with very limited resources that would be depleted quickly,” CNN quoted Yellen as saying in a letter she wrote to Congress. “It is uncertain whether we would continue to meet all the nation’s commitments after that date.”

That’s an accelerated timing from previously, when Yellen said this would happen at some point in October.

This so-called X-date should be viewed as a best guess by Treasury, not a set-in-stone deadline based on exact science. In other words, America could hit the debt ceiling days before, or days after, October 18.

There are many, many moving pieces here. Yellen herself warned the X-date “can unpredictably shift forward or backward.”

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