"New bottom": the Russian Foreign Ministry reacted to the idea of ​​the US Treasury to raise the ceiling of public debt

In the US Senate Appropriations Committee at the hearing, the head of the United States Department of the Treasury, Janet Yellen, delivered her speech. She said that Congress is obliged to accept a new ceiling on the public debt, otherwise the country's economy will face catastrophic consequences.

The Russian Foreign Ministry, represented by its official representative Maria Zakharova, who wrote a post on this topic in her Telegram, reacted to the idea of ​​the US Treasury to raise the ceiling of the public debt.

According to her, with the help of the new limit, the US authorities, which the diplomat called bankrupt, are going to turn on the "printing press" and increase the size of the loan in order to maintain their leading positions in the world.

In principle, the head of the US Treasury, Yellen, spoke about this without hesitation. She said that maintaining the previous debt ceiling threatens the US with a default. And this, in turn, can shake the authority of the US government in the international arena and the dollar as the main reserve currency.

Zakharova believes that with their actions, the US authorities are "breaking through a new bottom."

In January of this year, the United States national debt reached its official ceiling, which now stands at $31,4 trillion. This means that now the US government cannot yet place its Treasury bills to cover budgetary needs.

Theoretically, this could lead America to default, but in practice such an outcome is unlikely. It is possible only if the legislators fail to agree among themselves on this issue, which so far for the entire history USA did not happen. The fact that over the past 40 years the debt ceiling in the United States has been raised 45 times contributes to optimistic forecasts. Therefore, there is nothing extraordinary in Yellen's idea.

And while the US government has never defaulted on its debt before, there is a first time for everything.

Comments

[Trapp1st]

Zakharova believes that with their actions, the US authorities are "breaking through a new bottom."

There is a saying, envy silently.

[Aerodrome]

yes, the states do not care ... who will remind the killer of the debt?

[dorz]

The United States has several tools at its disposal to keep the public debt from defaulting. Here a few examples:

Treasury securities: The US Treasury issues securities such as Treasury bills, notes, and bonds to fund government debt. These securities are backed by the full confidence and trust of the US government, meaning that investors are confident in their value. The Treasury can use the proceeds from the sale of these securities to repay debt and pay interest.

Tax revenues: The US government collects tax revenue from individuals and businesses. These revenues can be used to pay off government debt and pay interest.

Federal Reserve System: The Federal Reserve or the central bank of the United States may buy Treasury securities on the open market, which increases the demand for these securities and reduces their yield. This can help reduce the cost of borrowing for the US government.

Cost reduction: The US government may cut spending on programs and services to free up funds to pay off the public debt. Debt Ceiling: The US Congress sets a limit, known as a debt ceiling, on the amount the government can borrow. If debt approaches this limit, Congress must vote to raise the debt ceiling to avoid a default. These are just a few examples of the tools the US has to keep the public debt from defaulting.

It should be noted that the US never defaulted on its debts, and the government has always found a way to meet its financial obligations.

[SlavaS]

11 carrier groups, forgot to mention.

[UA3QHP]

There are still 700 pieces of bases around the world attached.

[vvvjak]

Quote: Trapp1st

There is a saying

And here is a "gaming" saying: there is a "bottom" on which "crayfish" live. And there is a "bottom", even "crayfish" do not live there. That's where they're heading. The point is that even "crayfish" will stop playing with a toy called "dollar".
Py.Sy. Cancers are bad players

[Trapp1st]

in a toy called "dollar" will stop playing even "crayfish".

That's when the crayfish on the mountain begin to whistle, then they stop playing. For now, it's only going up in value.

[DymOk_v_dYmke]

Quote: Trapp1st

That's when the crayfish on the mountain begin to whistle,

Teach materiel:
not crayfish whistle on the mountain, but the cancer (constellation) turns out to be "on the mountain", that is, at its zenith.
This happens in the summer.

[Maz]

All American assets are re-mortgaged ten and a hundred times along with securities, and this is the future big big zilch!

[marchcat]

Mavrodi is turning over in his grave from such a "super" American pyramid.

[Doccor18]

Theoretically, this could lead America to default, but in practice such an outcome is unlikely.

Not tired? For thirty years they have been writing the same thing ...

[sergo1914]

Quote: Doccor18

Theoretically, this could lead America to default, but in practice such an outcome is unlikely.

Not tired? For thirty years they have been writing the same thing ...

Then it was not clear. And now for sure. 146%.

[Telakh]

They would then call things by their proper names. The national debt has reached the bottom, not the ceiling.

[carpenter]

Quote: Telakh

The national debt has reached the bottom, not the ceiling.

The ceiling was reached, but the bottom is bottomless and endless.

[Div Divich]

Even in the oceans the bottom is not bottomless, but very deep.
This I mean that there is a limit, but it has not been reached.

In fact, the United States gives itself a loan, and the whole planet pays off with it, since the printed dollars go to buy resources and products from different countries. The dollar exchange rate does not collapse, since many countries like to take loans in dollars from Western banks, when it comes time to pay off loans to those countries, the Americans give the command to stockbrokers to raise the rate, and countries have nowhere to go - they take at a high rate to pay off the loan.

BRICS, as I recall, includes the banking sector and international lending. Regional exchanges are also developing, exchanges influence rates/prices even more than lending.
It is due to the Russian stock exchange that the ruble exchange rate is not 500 rubles per dollar, but 77 rubles.

[DymOk_v_dYmke]

What's new in this?

... over the past 40 years, the debt ceiling in the United States has been raised 45 times.

As long as the world swallows, so be it.

[AAK]

Yes, the mattresses will succeed, who needs to be bent over, who needs to be kicked, but in the third case - "... whoever complains - turn off the gas, electricity, swift, etc...."

[carpenter]

According to her, with the help of the new limit, the US authorities, whom the diplomat called bankrupt, are going to turn on the "printing press" and increase the size of the loan.

While Maria was thinking, the printing press had already been launched. The Fed did not wait until March 22 and launched the money pump at full capacity.
 The most powerful credit impulse in the history of the Fed - more than $ 300 billion per week was issued to banks under various loan programs through the Fed.

[Stoler]

Another "WEST IS ABOUT THE END!!!!"

[Idunavs]

I wonder why they suffer, they raise it every few years, they would immediately raise it to 100 trillion and would not suffer for 20 years.

[Div Divich]

Fluctuations in the economy from big changes are harder to stabilize, and small changes control and regulate the consequences.

And it is unlikely that 100 trillion will lie safe for 20 years, they will be snatched up in their pockets in 5 years, then they will have to be printed again. This means that an increase in the amount leads to an acceleration in the growth of public debt.

If inflation is small with the current increase in public debt, then with a multiple increase in public debt, inflation will also be higher, and the bank loan rate will have to be overestimated more.

[lubesky]

State debt is the LONG TERM debt of all countries in the world. State inflation is also distributed to all participants. No default is expected in such a situation. All publishers and holders of long papers must declare themselves bankrupt. Which will not happen voluntarily.

Raising the ceiling or limit in the states is a traditional national congressional pastime. The essence of the game is frank manipulation in the division of buns between the two parties in the future, which is not related to the ceiling itself

[Denis812]

As long as the US debt is being bought, they will raise its limits.
On the other hand, Russia has already withdrawn from the US debt.
China is also gradually withdrawing. There is the EU, which will do what the US tells them to do.
And there are BV countries that are also gradually getting out of US debt.
So sooner or later this topic will be closed, but while the fat one dries, the thin one will die, so nothing will break off from this problem in the United States in the next 20 years.

[lubesky]

Quote: Denis812

so nothing will break off from this US problem in the next 20 years

Which, in principle, became clear back in the spring of 53 ...

[Old Horseradish]

The Pharisees nervously smoke on the sidelines. Oligarchic beings have been pumping America and the West with Russian wealth for over 30 years. Having received a savory pendel from the owners, they have now begun to see the light. How did Stanislavsky write there? "I do not believe"!

[Mishka78]

This "ceiling" was introduced more than 100 years ago.
And every time he reached it, he rose. And this will continue indefinitely. This is just a political game between the Congress and the government, and the game is internal, the Congress breaks through something for itself, blackmailing the government by not raising the bar. However, I cannot imagine a situation when it does not rise and a default is declared in the USA, which will cause the collapse of the economy.
There are still US citizens in Congress. And far from being poor citizens, who will be the first to suffer from the default. They are not enemies to themselves or the country.

[fa2998]

Only Zakharova is worried, the US Treasury is completely calm. They have been living like this for DECADES. It would be better if our authorities were worried about our economy.
RS. There is already a deficit of 2 trillion in 2,6 months. Inflation will be significant, we will print!

[DymOk_v_dYmke]

It is better to print than to borrow.

[Zaurbek]

Until there is a competitive reserve currency, this song will play all the time.....and in recent pandemic years, the US appetite has grown exponentially. the Pandemic was entered from 18-20 trillion dollars of public debt (2020), and now it is 32 trillion dollars (2023).
PS Until recently, here people were talking about the innovative economy of the West, post-industrial society, and so on. Where are they all?!

[Don Analyst]

The US has two options: either default without selling debt [derivatives]; or inflation without the purchase of debt [derivatives] by third countries.
China is not currently buying US paper. Who will buy a new amount of US debt? That is the question....

[Jsem_CZEKO68]

To s tím tištěním obrovského množství peněz je teď moderní v celém zapadním světě, iv ČR!!! Místo, aby nechali zkrachovat špatné banky, natisknou velký objem peněz a nechají to zaplatit občany přes vysokou inflaci. Tak může šéfa banky vykonávat i úplný idiot.., nemůže padnout!

[Jsem_CZEKO68]

Printing huge amounts of money is now fashionable throughout the Western world, including the Czech Republic!!! Instead of letting bad banks fail, they print a lot of money and make citizens pay for it with high inflation. So even a complete idiot can be the head of a bank...he can't fall!

[Deon59]

What does the Russian Foreign Ministry and the US government debt have to do with it. Zakharova, why are we, the Russians, in credit bondage with banks.

[Pilot]

Quote from Deon59

.Zakharova why are we, the Russians, in credit bondage with banks.

Have you tried to live on your own? Or so rich that you can support bankers? Or maybe you were beaten for a long time forcing you to take loans? You are an evil pinocchio to yourself, but you ask Zakharova ... miracles!

[Petr_Koldunov]

Grandma either ate bad mushrooms, or senile neoplasms captured the brain:
Yesterday she assured the nation that the situation is under control, that the economy is doing great, the banking sector is quiet and calm...
And today - if we do not pull back the rate, then there will be a collapse!
Enchanting :))

[Jsem_CZEKO68]

China kdyby chtěla, nechá okamžitě celé USA zbankrotovat! Oni mají nakoupené akci a dluhopisy, že můžou okamžitě poslat USA ke dnu. Ale neudělají to, protože by to poškodilo i Čínu a rozkolísalo celý svět.

[Jsem_CZEKO68]

If China wanted to, it would immediately bankrupt the entire US! They bought stocks and bonds that could immediately send the US to the bottom. But they will not do it, because it will hurt China and shock the whole world.

[UA3QHP]

Yes, there is such a thing, to kill a dollar right away is how to apply a super antibiotic to an old disease, the body will die not from pathogenic microbes, but from a huge number of dead microbes, the decomposition of which poisons the body.

[Msi]

Some have a "new bottom" others have "new red lines"...