17 July 2019

U.S. government running out of money

Faster than expected.
(CNN)  Treasury Secretary Steven Mnuchin on Friday issued a warning Friday that the US government is at risk of running out of cash sooner than expected. 

In a letter to Democratic House Speaker Nancy Pelosi, Mnuchin wrote that the US might default on its obligations as soon as early September, before Congress returns from its summer recess. 
"Based on updated projections, there is a scenario in which we run of out cash in early September, before Congress reconvenes," Mnuchin wrote in a letter.
 
The federal government has not been able to borrow money since March, when congressionally-mandated borrowing limits went back into force. The US Treasury, which is facing a growing deficit thanks in part to President Donald Trump's 2017 tax cuts, had said it had enough cash to last until the fall. 
 
The deficit widened to $747.1 billion, versus $607 billion last year, from October through June. Federal spending rose to $3.36 trillion in that period, while revenue increased to $2.61 trillion -- both records. 

6 comments:

  1. Dear Stephen,

    Thank you for your note. I am surprised to read that we're running out of money. You insisted that the tax cuts would pay for themselves. Please go check your homework again, and tell us why you were wrong. Furthermore, feel free to print some extra twenties with Harriet Tubman on them if you need more money.

    Love,

    Nancy

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  2. Nothing that a couple more military parades can't fix.

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  3. No sovereign government can run out of its own currency which it issues via its central bank. This is simply not correct. At the risk of being self-serving: http://hipcrimevocab.com/2016/05/14/explain-like-im-five-functional-finance/

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