Treasury: Failure to increase debt ceiling worse than economic collapse

By: Staff

New York, NY (CLN) – The United States Treasury Department issued a statement late last week warning that failure by Congress to raise the debt ceiling could be much more catastrophic than the Great Recession.

“As we saw two years ago, prolonged uncertainty over whether our nation will pay its bills in full and on time hurts our economy,” Treasury Secretary Jack Lew said in a statement. “Postponing a debt ceiling increase to the very last minute is exactly what our economy does not need—a self-inflicted wound harming families and businesses.”

The consequences of not raising the debt ceiling, according to the Treasury’s report, are the country’s credit markets to freeze, interest rates to soar and the value of the U.S. dollar to fall.

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