US Finance Minister Janet Yellen rejected the idea of coin chasing a nominal one trillion dollars, which was to save the United States from a default, reports Associated Press.
“I am against this and I do not believe that we must seriously treat it. The platinum coin is equivalent to the request of the Fed to print money to cover the debt,” said Yellen. According to her, it is necessary that the Congress and Administration of the US President Joe Bayiden will demonstrate that they can be trusted.
Potential default, according to Yellen, will speed up the historical financial crisis and aggravates the damage from the coronavirus pandemic, “making the United States a much weaker country as a whole. In the case of a default, the US economy will be recession, which will prevent the government to pay benefits 50 million Americans on social security, as well as cover other needs.
As Yellen said, Congress must approve the debt limit to October 18, otherwise Washington is likely to end the resources to prevent default. The Minister of Finance has repeatedly warned that the unwillingness of the legislative bodies to raise the state debt ceiling may lead to the fact that the United States will be on the verge of an economic catastrophe.
In June 2021, US debt of 28.5 trillion dollars. Congress was to agree to raise his limit until October 1 to avoid default, but the Republicans in the Senate – one of the two Congress chambers – blocked the proposal together with the draft law on the financing of the government. Biden stated that he could not guarantee that the US government would not declare default, since it all depends on the Republicans. New York State Senator Chak Sumer said that he would try to make a law on increasing the debt limit before the expiration of the deadline, but he will need the Republicans in the Senate to agree not to slow down the adoption of the law.