Yellen: Chinese regime would be among first paid under GOP debt limit plan

Source: CNBC

“Treasury Secretary Janet Yellen said Thursday that China would be among the first in line to get paid under a Republican proposal to prioritize some U.S. debt obligations over others, calling it a ‘dangerous idea’ that would technically cause the U.S. to default on its bonds. House Republicans are holding up a bill to raise the U.S. debt ceiling, which hit its $31.4 trillion borrowing limit in January. They want any agreement on the debt limit to be paired with spending cuts on social programs. Their latest debt ceiling proposal, which passed 21-17 out of the House Ways and Means Committee last week, would prioritize which payments the U.S. Treasury makes first when the U.S. hits the ceiling at which it cannot issue more bonds. The GOP plan places a higher priority on making public debt obligations and Social Security payments than other types of government obligations.”(03/16/23)