America does not have the money to repay the loan? Cash crunch may occur after June 1, Treasury warns
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America, the world’s most powerful and strong country, can also default? We are not saying this, American Finance Minister Janet Yellen is saying this. Yellen has warned the government that if the debt limit is not increased before June 1, we will be unable to meet all the government’s obligations by the beginning of June.
Many big banks drowned in the last few months
These days, negative news is coming from all sides for the American economy. There, in the last few months, many big banks were drowned. It is said that many more banks are on the verge of collapse. Now the news is coming that America can default in loan repayment. Finance Minister Janet Yellen herself has said this on Monday.
America may run out of cash as early as June 1
Finance Minister Janet Yellen said that if the government fails to raise the debt ceiling, the US could run out of cash as early as June 1. After this, you can default on your debt repayment. Yellen said in a statement that if Congress does not increase the debt limit before June 1, then we will be unable to meet all the obligations of the government by the beginning of June.
Withdrawal of more than one trillion dollars from American bank in the last few days
If you look at the last few months, many banks have drowned there. Not only this, the signs are not good even further. It is said that many more banks there can be drowned. Because people have withdrawn more than one trillion dollars from banks in a few days. Due to this, the condition of flour in Kangali has become wet. On the other hand, the US dollar is currently facing a tough challenge all over the world. Many countries have started trading in their own or any other currency instead of dollar. At this time, the Debt to GDP Ratio there has also reached the record level.
This is happening for the first time in the history of America.
This is happening for the first time in the history of America. Earlier, America was never in danger of default. In fact, if the debt ceiling of America is not increased till the coming July, then there is talk of destruction. Defaulting has its dangers. It has been estimated that if America defaults, more than 7 million jobs will be lost in one stroke. Due to this, the US GDP will also decline. When this happens only in the leading economy of the world, then it is bound to affect other countries of the world as well.
The Finance Minister had also warned in January
The US Finance Minister has not given such a warning for the first time. Earlier in January too, he had warned that the US could default in debt payment by June. This is because America has crossed the debt limit. That’s why Yellen requested the Parliament to increase the debt limit as soon as possible.
President Joe Biden will hold a meeting on Monday
US President Joe Biden on Monday summoned four top Congressional leaders to the White House next week, after the Treasury warned that the government could run short of cash to pay its bills through June. US The Treasury said it could run out of money to pay all of the government’s bills by June without an increase in the debt ceiling, prompting Biden to call for a May 9 meeting with leaders including Republican House Speaker Kevin McCarthy.
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