In a recent interview with ABC, President Biden’s Treasury Secretary Janet Yellen condemned Senate Minority Leader Mitch McConnell after he promised to not help Democrats raise the debt ceiling again after he already threw them a lifeline and gave them an extension until December.
What Democrats don’t want to admit is that they currently control the entire House and Senate, so technically they can raise the debt ceiling without any Republican support. However, many have speculated that they want to involve the Republicans so Democrats don’t have to take all of the blame later down the line.
During her recent interview with ABC, Yellen was asked what would happen if McConnell stuck to his word and didn’t help them raise the debt ceiling in December.
Yellen responded by blaming McConnell and saying his actions alone would cause a “catastrophic financial crisis.”
In transcript provided by Breitbart, Yellen said, “Well, it is absolutely imperative that we raise the debt ceiling. Debt’s necessary not to fund any new spending programs but to pay the bills that result from Congress’ past decisions. A group of business and community leaders met with President Biden and me last week to talk about the disastrous impact it would have for the first time America not paying its bills. Fifty million Americans who would receive Social Security payments would be put at risk. Our troops won’t know when or if they would be paid. The 30 million families that receive a child tax credit, those payments would be in jeopardy. And the nation’s credit rating would be in jeopardy as well. U.S. treasuries are the world’s safest possible asset that would be at risk as well. And that really underpins the reserve status, currency status of the dollar. So there is an enormous amount at stake. A failure to raise the debt ceiling would probably cause recession and could even result in a financial crisis. It would be a catastrophe.”
