The United States ruling class is warning of economic turmoil if it defaults on its debt. The White House says to expect a “deep recession” and a stock market bloodbath as it plunges 45%.
The deadline for the ruling class to lift the debt limit is rapidly approaching in early June as Treasury Secretary Janet Yellen exhausts all of the department’s “extraordinary measures”. Most of those measures are nothing more than fear-mongering and propaganda. If a debt ceiling deal isn’t reached, it could mean the Treasury forgoes Social Security payments, payments to Medicare and Medicaid, and ultimately payments to U.S. bondholders, according to a report by Yahoo News.
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If the ruling class allows itself to default, it will surely use this as an excuse to usher in the fully controlled new slave system of central bank digital currencies.
“The closer the US gets to the debt ceiling, the more we expect these market-stress indicators to worsen, leading to increased volatility in equity and corporate bond markets and inhibiting firms’ ability to finance themselves and engage in the productive investment that is essential for extending the current [economic] expansion,” The White House CEA said in a May 3rd post.
Additionally, millions of people would lose their jobs and a sharp economic contraction would lead to a massive recession, the CEA warned. “In the third quarter of 2023, the first full quarter of the simulated debt ceiling breach, the stock market plummets 45%, leading to a hit to retirement accounts; meanwhile, consumer and business confidence takes substantial hits, leading to a pullback in consumption and investment,” the CEA said, adding that unemployment would increase by 5 percentage points.
“Without the ability to spend on counter-cyclical measures such as extended unemployment insurance, Federal and state governments would be hamstrung in responding to this turmoil and unable to buffer households from the impacts,” the CEA explained.
“Hamstrung” is what the government should be before they cease to exist at all.
However, according to the CEA, U.S. households mong the slave class would be unable to turn to the private sector for loans because interest rates for credit cards and personal loans would “skyrocket”.
Article cross-posted from SHTF Plan.