The US is going to run out of money. Imagine that. The world’s reserve currency has no money.
Forbes reported that The U.S. Treasury stands to run out of cash as soon as October if the debt limit isn’t lifted in the coming weeks.
The Congressional Budget Office (CBO) said that we seem to be at a standstill. There is a lending urgency but the debt limit has been reached.
Democrats and Republicans remain at a standoff over the cost of President Joe Biden’s lofty infrastructure ambitions.
Congress has until August 1 to either raise the current debt limit, which is the maximum amount of debt the Treasury can issue to the public and other federal agencies or extend its in-place suspension.
That’s in accordance with the Bipartisan Budget Act of 2019
According to the CBO, The Treasury would need to take “extraordinary measures” to finance the government’s activities if no action is taken.
They have other options like cut off investments to federal retirement, health benefits, and disability funds for civil servants and federal government retirees.
I guess cut out the most important things.
However, even those measures would only help briefly. The Treasury would probably run out of cash in the first quarter of the next fiscal year, which begins on October 1.
So, what happens if the Treasury runs out of cash? We will be unable to pay our obligations. We might even have to default on debt obligations.
Here is the best part, while we are about to run out of money, the senate is fighting over budget. There are people screaming for reforms. Others accuse others of not doing their job.
In the meantime, no one is actually dealing with our financial problems.
Yes, that basically gives you an idea of where our economy is going.
What does it mean for us? Whatever money you have, will be worthless very soon so take matters into your own hands and protect your investments.
Make sure to invest in gold because it’s the best store of value. That means your 1 million dollars will be just as powerful decades from now even if you leave it alone.