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- If No Debt Ceiling Deal by Early June, Stocks Crash, the Economy Implodes, and Social Security Payments Don’t Go Out
If No Debt Ceiling Deal by Early June, Stocks Crash, the Economy Implodes, and Social Security Payments Don’t Go Out
by Michael Snyder The Economic Collapse Blog
We are being warned that there could be some real serious economic doom at the beginning of next month if the Democrats and the Republicans cannot agree on a deal to raise the debt ceiling. Experts are telling us that the stock market will crash, the economy will immediately plunge into a recession, and tens of millions of Americans will not get their Social Security payments. Treasury Secretary Janet Yellen says that a U.S. debt default would begin somewhere around June 1st. She can’t nail down the date precisely, because there is some uncertainty regarding how much tax money will come in over the next few weeks. But what is exceedingly clear is that time is very short, and there are only four days when the House and the Senate are both scheduled to be in session before June 1st. So the clock is ticking, and right now both sides are still far apart on any sort of a deal.
Of course the Republicans in the House have already passed a bill to raise the debt ceiling, but it is not acceptable to the Biden administration.