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Treasury Secretary Janet Yellen said that the government will run out of money by the middle of October, sooner than expected, and that Congress needs to act pronto.
With all the hyped-up performative bloviating about the debt ceiling, it’s easy to forget that raising the debt ceiling is something we do to pay for things we’ve already spent money on. Raising the debt limit covers past obligations, not future ones.
If the world’s richest country becomes a deadbeat on paying its debts, things can go south very quickly throughout the entire economy.