{"id":120738,"date":"2023-05-22T08:00:36","date_gmt":"2023-05-22T12:00:36","guid":{"rendered":"http:\/\/kendallharmon.net\/?p=120738"},"modified":"2023-05-22T18:56:45","modified_gmt":"2023-05-22T22:56:45","slug":"wsj-debt-ceiling-standoff-could-start-a-recession-but-default-would-be-worse","status":"publish","type":"post","link":"https:\/\/kendallharmon.net\/?p=120738","title":{"rendered":"(WSJ) Debt-Ceiling Standoff Could Start a Recession, but Default Would Be Worse"},"content":{"rendered":"<p>Treasury Secretary Janet Yellen said that the government could become unable to pay bills on time by June 1. In that case, the Treasury Department could halt payments, such as to federal employees or veterans.<\/p>\n<p>In a worst-case scenario, a failure to pay holders of U.S. government debt, a linchpin of the global financial system, could trigger severe recession and send stock prices plummeting and borrowing costs soaring. <\/p>\n<p>Many economists don\u2019t expect a default for the first time in U.S. history. But they outline three potential ways the standoff could affect the economy and financial system, ranging from not great to extremely scary.<\/p>\n<p><a href=\"https:\/\/www.wsj.com\/articles\/debt-ceiling-standoff-could-start-a-recession-but-default-would-be-worse-d536c3f3\">Read it all<\/a>.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">U.S. lawmakers might have just days to act before the standoff over the debt ceiling reverberates through the economy <a href=\"https:\/\/t.co\/JM1UfZ7HfW\">https:\/\/t.co\/JM1UfZ7HfW<\/a><\/p>\n<p>&mdash; Real Time Economics (@WSJecon) <a href=\"https:\/\/twitter.com\/WSJecon\/status\/1660650235733897223?ref_src=twsrc%5Etfw\">May 22, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Treasury Secretary Janet Yellen said that the government could become unable to pay bills on time by June 1. In that case, the Treasury Department could halt payments, such as to federal employees or veterans. In a worst-case scenario, a<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/kendallharmon.net\/?p=120738\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":794,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[40,670,595,592,149,617,151,687,618,599,584],"tags":[],"class_list":["post-120738","post","type-post","status-publish","format-standard","hentry","category-economics-politics","category-budget","category-credit-markets","category-currency-markets","category-economy","category-house-of-representatives","category-politics-in-general","category-president-joe-biden","category-senate","category-stock-market","category-the-u-s-government"],"_links":{"self":[{"href":"https:\/\/kendallharmon.net\/index.php?rest_route=\/wp\/v2\/posts\/120738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kendallharmon.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kendallharmon.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kendallharmon.net\/index.php?rest_route=\/wp\/v2\/users\/794"}],"replies":[{"embeddable":true,"href":"https:\/\/kendallharmon.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=120738"}],"version-history":[{"count":3,"href":"https:\/\/kendallharmon.net\/index.php?rest_route=\/wp\/v2\/posts\/120738\/revisions"}],"predecessor-version":[{"id":120741,"href":"https:\/\/kendallharmon.net\/index.php?rest_route=\/wp\/v2\/posts\/120738\/revisions\/120741"}],"wp:attachment":[{"href":"https:\/\/kendallharmon.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=120738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kendallharmon.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=120738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kendallharmon.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=120738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}