<div>
Asked whether the Treasury Department urged financial institutions to examine legal purchases for signs of extremism, Treasury Secretary Janet Yellen dodged the question, Fox News <a href="https://www.foxbusiness.com/politics/yellen-dodges-whether-treasury-department-moved-surveil-americans-legal-purchases">reported</a>.
</div>
<div>
In January, the House Judiciary Committee <a href="https://www.foxnews.com/politics/house-gop-investigating-bank-america-voluntarily-fbi-list-customers-jan-6" target="_blank" rel="noopener">asserted</a> that federal investigators, as part of an investigation into the events of January 6, 2021, urged banks to search and filter legal purchases with terms like &#8220;MAGA,” “Trump,” “Dick&#8217;s Sporting Goods,” “Cabela&#8217;s,”  and “Bass Pro Shops” while warning that the sale of “religious texts” could indicate &#8220;extremism.&#8221;
House Judiciary Committee Chair Jim Jordan <a href="https://judiciary.house.gov/sites/evo-subsites/republicans-judiciary.house.gov/files/evo-media-document/2024-01-17-jdj-to-bishoff-re-ti-request.pdf">stated in a letter</a> that after Jan. 6, the Treasury Department’s Office of Stakeholder Integration and Engagement in the Strategic Operations of the Financial Crimes Enforcement Network (FinCEN), sent banks outlines “typologies” of “various persons of interest” as well as “suggested search terms and Merchant Category Codes for identifying transactions on behalf of federal law enforcement.”
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<div>
“According to this analysis, FinCEN warned financial institutions of ‘extremism’ indicators that include ‘transportation charges, such as bus tickets, rental cars, or plane tickets, for travel areas with no apparent purpose,’ or ‘the purchase of books (including religious texts) and subscriptions to other media containing extremist views,’” Jordan wrote to the former director of FinCEN. “In other words, FinCEN used large financial institutions to comb through the private transactions of their customers for suspicious charges on the basis of protected political and religious expression.”
</div>
<div>
On Tuesday, Rep. Ann Wagner (R-MO) <a href="https://katv.com/news/nation-world/treasury-secretary-wont-say-whether-dept-surveils-americans-purchases-concerning-janet-yellen-ann-wagner-fincen-transactions-financial-crimes-enforcement-network" target="_blank" rel="noopener">stated</a>, “Increasingly, we are hearing the federal government is suggesting banks search private financial transactions using highly partisan political terms or check to see if customers made purchases that could be associated with legal sales of firearms or even religious texts.”
</div>
<div>
She asked Yellen, &#8220;Has Treasury — including FinCEN or federal banking agencies like the Fed, FDIC, OCC — instructed financial institutions to search Americans&#8217; legal transactions in attempts to surveil their purchases?”
</div>
<div>
“Well, we received the letter from you, I believe, on this topic, and we intend to investigate and to respond,” Yellen dodged. 
</div>
<div>
“Have you instructed banks and financial institutions to provide this information?” Wagner pressed.
</div>
<div>
&#8220;Well, FinCEN, our job is to work with financial institutions to make sure —&#8221; Yellen replied.
</div>
<div>
&#8220;Are they instructing financial institutions to search Americans&#8217; legal transactions in attempts to surveil their purchases?&#8221; Wagner reiterated.
</div>
<div>
&#8220;I promise a thorough look into everything,&#8221; Yellen answered.
</div>

Treasury Secretary Janet Yellen On Capitol Hill

Janet Yellen Dodges Questions On Whether Biden Treasury Dept Urged Banks To Search Private Transactions

Banks

Janet Yellen

Privacy

Treasury Department

On Monday, the U.S. Department of the Treasury&#8217;s Office of Foreign Assets Control <a href="https://home.treasury.gov/news/press-releases/jy2052" target="_blank" rel="noopener">announced</a> that in conjunction with the United Kingdom, they are pursuing a network that targeted Iranian dissidents and opposition activists for assassination at the direction of the Iranian regime.
“The network is led by Iranian narcotics trafficker Naji Ibrahim Sharifi-Zindashti (Zindashti) and operates at the behest of Iran’s Ministry of Intelligence and Security (MOIS),” the Treasury Department stated. “Zindashti’s network has carried out numerous acts of transnational repression including assassinations and kidnappings across multiple jurisdictions in an attempt to silence the Iranian regime’s perceived critics. The network has also plotted operations in the United States.”
In late January, the Department of Justice <a href="https://www.justice.gov/opa/pr/one-iranian-and-two-canadian-nationals-indicted-murder-hire-scheme" target="_blank" rel="noopener">indicted</a> Zindashti, 49, Damion Patrick John Ryan, 43, and Adam Richard Pearson, 29, for a conspiracy to murder two residents of the state of Maryland, using an encrypted messaging service called “SkyECC” to recruit individuals who would travel into the United States to carry out the killings.
“The Iranian regime’s continued efforts to target dissidents and activists demonstrate the regime’s deep insecurity and attempt to expand Iran’s domestic repression internationally,” Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson <a href="https://home.treasury.gov/news/press-releases/jy2052">stated</a>. “The United States, alongside our international allies and partners, including the United Kingdom, will continue to combat the Iranian regime’s transnational repression and will utilize all available tools to stop this threat, especially on U.S. soil.”
The MOIS has supported multiple terrorist groups, including Hezbollah, Hamas, and Al-Qaeda, the Treasury Department noted, adding, “The MOIS and Iran’s Islamic Revolutionary Guard Corps (IRGC) have long targeted perceived regime opponents in acts of transnational repression outside of Iran, a practice that the regime has accelerated in recent years. A wide range of dissidents, journalists, activists, and former Iranian officials have been targeted for assassination, kidnapping, and hacking operations across numerous countries in the Middle East, Europe, and North America.”
“The regime increasingly relies on organized criminal groups in furtherance of these plots in an attempt to obscure links to the Government of Iran and maintain plausible deniability,” the Department pointed out.
“In 2021, Zindashti’s network recruited Canadian national and British Columbia-based Hells Angels Outlaw Motorcycle Group member Damion Patrick John Ryan (Ryan) to assassinate individuals in the United States who fled Iran. Ryan, whose criminal history ranges from firearms trafficking charges to international drug trafficking, has ties to criminal elements in Canada, the United States, and Greece. Zindashti associate Asan worked closely with Ryan to plan the assassinations, sending the location and photos of the targets, in addition to coordinating payment details. Ryan also recruited Canadian national and Hell’s Angels affiliate Adam Richard Pearson (Pearson) to carry out the murders,” the Department explained, adding, “Both Ryan and Pearson are presently incarcerated abroad on unrelated criminal matters.”

Afghanistan’s President Ghani visits Iran

U.S., U.K. Pursue Network That Targeted Iranian Dissidents For Assassination At Direction Of Iranian Regime

assassination

Dissidents

Iran

United Kingdom

Senator <a class="c-link c-link--focus-visible" href="https://www.dailywire.com/topic/tim-scott" target="_blank" rel="noopener noreferrer" data-stringify-link="https://www.dailywire.com/topic/tim-scott" data-sk="tooltip_parent">Tim Scott</a> (R-SC) pressed Treasury Secretary Janet Yellen on Friday over a report that said federal officials instructed banks to turn over customer data of transactions flagged with terms like “TRUMP” or “MAGA.”
Scott’s letter came after documents obtained by the Select Subcommittee on the Weaponization of the Federal Government showed that the Financial Crimes Enforcement Network (FinCEN) had flagged the terms as part of its investigation related to the January 6 riot. Banks were also told to look at transactions involving the purchase of religious texts and outdoor sporting goods stores like Cabela’s. 
“These allegations, if true, represent a flagrant violation of Americans’ privacy and the improper targeting of U.S. citizens for exercising their constitutional rights without due process,” Scott, the ranking member of the Senate Banking Committee, <a href="https://www.banking.senate.gov/imo/media/doc/rmscottlettertofincen11924.pdf" target="_blank" rel="noopener">wrote</a>. 
FinCEN reportedly asked banks to help federal law enforcement identify transactions of persons of interest using specific typologies and Merchant Category Codes after January 6, 2021. The letter was also sent to FinCEN Director Andrea Gacki.
In the letter, Scott asked Yellen if the Treasury Department had any role in soliciting private financial data from the banks and whether it was directed to do so by the FBI or the Justice Department. Scott also asked Yellen about what religious texts were seen as indicative of extremism and why sporting goods store shoppers were targeted in the federal investigation. 
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“These allegations are particularly concerning given past efforts to weaponize the financial system and payment activity against politically disfavored, lawful activity. Under the Obama- administration’s ‘Operation Choke Point’ initiative, the Department of Justice (DOJ) coordinated with federal financial regulators to intimidate financial institutions into denying services to legitimate businesses that the administration was ideologically opposed to, including gun retailers,” Scott said. 
On Thursday, House Judiciary Chair Jim Jordan <a href="https://www.dailywire.com/news/feds-flagged-terms-like-trump-maga-for-banks-to-comb-through-customer-data-jordan-says" target="_blank" rel="noopener">requested an interview</a> with Noah Bishoff, the former director of the Office of Stakeholder Integration and Engagement in the Strategic Operations Division of FinCEN, to discuss the report. 
The letter asks Bishoff to be prepared to speak to lawmakers about what safeguards FinCEN has in place to safeguard constitutional liberties, the government’s use of private financial information, and coordination between FinCEN and the private sector.

Treasury Secretary Janet Yellen Holds Meeting Of The Financial Stability Oversight Council

Tim Scott Presses Treasury Secretary Over Flagging Of ‘Trump,’ ‘MAGA’ Transactions

Congress

Department of Justice

Donald Trump

January 6

MAGA

Politics

Tim Scott

The U.S. national debt rose to a staggering $34 trillion for the first time last week, just three months after it surpassed $33 trillion, according to data published by the Treasury Department. 
Along with the steady increase in America’s national debt, the federal government’s borrowing costs on the debt are expected to triple over the next decade, according to the Committee for a Responsible Budget, Fox Business <a href="https://www.foxbusiness.com/politics/us-national-debt-tops-34t-first-time-history">reported</a>. Debt payments could rise from the current $475 billion to $1.4 trillion by fiscal year 2032 and $5.4 trillion by 2053. For comparison, in fiscal year 2022, the U.S. <a href="https://www.cms.gov/data-research/statistics-trends-and-reports/national-health-expenditure-data/nhe-fact-sheet#:~:text=Medicare%20spending%20grew%205.9%25%20to,18%20percent%20of%20total%20NHE.">spent</a> $944 billion on Medicare, $805 billion on Medicaid, and $1.2 trillion on <a href="https://finance.yahoo.com/news/social-security-much-money-ssa-131133767.html#:~:text=About%20one%2Dfifth%20(21%25),of%20any%20U.S.%20government%20program.">Social Security</a>.
“The national debt is the greatest threat to America’s national security, and the current addiction to reckless spending cannot be sustained,” <a href="https://twitter.com/SpeakerJohnson/status/1742379468004409671" target="_blank" rel="noopener">said</a> House Speaker Mike Johnson (R-LA). “Lawmakers from both sides of the aisle have a responsibility to reduce spending and finally put America on path towards fiscal sanity.”
The national debt is equal to $100,000 for every adult and child in the U.S., and the debt-to-GDP ratio is the highest it has been since right after World War II, Mississippi State Auditor Shad White <a href="https://twitter.com/shadwhite/status/1742564146057551974">said</a>. 
Responding to news of the national debt’s new record, the White House blamed Republicans, claiming that tax breaks for corporations have “overwhelmingly” led to the increase in debt. 
&#8220;This is the trickle-down debt — driven overwhelmingly by repeated Republican giveaways skewed to big corporations and the wealthy,&#8221; said White House Assistant Press Secretary Michael Kikukawa in a statement to Fox Business. Kikukawa added that Biden has a plan to cut the deficit by $2.5 trillion by “making the wealthy and big corporations pay their fair share and cutting wasteful spending on special interests.” 
The Biden administration was also on the receiving end of criticism for its fiscal policy. Sen. Rick Scott (R-FL) slammed Biden for “destroying our country with his reckless spending.”
“It took @JoeBiden just 105 days (Sept. 15-Dec. 29) to dig American taxpayers another TRILLION deeper into debt. When Biden took office, the national debt was $27 trillion. Today it&#8217;s $34 trillion,” Scott <a href="https://twitter.com/SenRickScott/status/1742559572496114172">posted</a> on X. 
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The national debt has increased under each president since Calvin Coolidge, with the <a href="https://www.usatoday.com/money/blueprint/banking/national-debt-by-president/">largest</a> percentage increases coming under Presidents Franklin D. Roosevelt, Ronald Reagan, George W. Bush, and Barack Obama.  
Congress has just weeks to agree on <a href="https://www.cnn.com/2024/01/03/economy/us-national-debt-34-trillion/index.html">new</a> department budgets after the House and Senate <a href="https://www.dailywire.com/news/johnson-led-house-passes-bill-to-avert-government-shutdown-with-dem-support">passed</a> a stopgap spending bill in November, averting a government shutdown.

U.S. Department of the Treasury

‘Greatest Threat To America’s National Security’: National Debt Hits $34 Trillion For First Time

Biden Administration

Budget

National Debt

White House

America&#8217;s gross national debt surpassed $33 trillion for the first time in U.S. history on Monday as Washington, D.C., faces a potential government shutdown over federal spending.
Data reportedly published by the Treasury Department showed the national debt — which measures how much the federal government owes security holders — hit $33.04 trillion, just months after it eclipsed $32 trillion in mid-June.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a <a href="https://www.crfb.org/press-releases/national-debt-reaches-33-trillion-adds-1-trillion-debt-3-months" target="_blank" rel="noopener">news release</a> that the latest numbers reached &#8220;a new milestone that no one will be proud of.&#8221;
&#8220;Debt held by the public, meanwhile, recently surpassed $26 trillion,&#8221; MacGuineas said. &#8220;We are becoming numb to these huge numbers, but it doesn&#8217;t make them any less dangerous.&#8221;
The Congressional Budget Office confirmed last week that the underlying deficit would likely double from last fiscal year to this one, according to MacGuineas. The office reportedly <a href="https://fortune.com/2023/09/18/janet-yellen-national-debt/" target="_blank" rel="noopener">warned</a> in June that high interest rates and rising national debt could make net interest payments spike to 6.7% of GDP by 2053, according to Fortune.
&#8220;Instead of hearing about solutions, we hear promises of which programs our leaders are unwilling to touch and which taxes they are unwilling to raise,&#8221; she said. &#8220;That kind of talk is not only pandering, but it&#8217;s also downright irresponsible when we have a mess like this on our hands.&#8221;
The announcement comes as House Republicans proposed a short-term plan on Sunday that would temporarily fund the government through October 31 to avoid a shutdown and impose an 8% spending cut on federal agencies, excluding defense funding, veterans affairs, and disaster relief, <a href="https://www.foxbusiness.com/economy/us-national-debt-hits-33t-first-time-history" target="_blank" rel="noopener">according</a> to Fox Business.
But the measure received opposition from fellow GOP lawmakers while Democrats are unlikely to support it.
Michael A. Peterson, the chief executive of the budget watchdog group Peter G. Peterson Foundation, raised the alarm of a looming federal crisis.
&#8220;As we have seen with recent growth in inflation and interest rates, the cost of debt can mount suddenly and rapidly,&#8221; Peterson said, <a href="https://www.nytimes.com/2023/09/18/us/politics/us-national-debt.html" target="_blank" rel="noopener">according</a> to The New York Times. &#8220;With more than $10 trillion of interest costs over the next decade, this compounding fiscal cycle will only continue to do damage to our kids and grandkids.&#8221;
Mark Spitznagel, founder of the hedge fund Universa Investments, told Fortune in August that we&#8217;re living through the &#8220;greatest credit bubble in human history&#8221; after warning of a potential impact from the debt increase.
&#8220;We&#8217;ve never seen anything like this level of total debt and leverage in the system,&#8221; Spitznagel said. &#8220;It&#8217;s an experiment. But we know that credit bubbles have to pop. We don&#8217;t know when, but we know they have to.&#8221;
U.S. Treasury Secretary Janet Yellen <a href="https://www.cnbc.com/2023/09/18/first-on-cnbc-cnbc-transcript-united-states-treasury-secretary-janet-yellen-speaks-with-cnbcs-sara-eisen-on-squawk-on-the-street-today.html" target="_blank" rel="noopener">told</a> CNBC on Monday that she isn&#8217;t worried about the staggering debt, claiming that the net interest as a share of GDP remains under control by the federal government.
&#8220;And even with the rise we have seen in interest rates, that remains at a very reasonable level,&#8221; Yellen said, admitting that U.S. officials need to be careful about spending going forward in order to stay on this &#8220;sustainable course.&#8221;
&#8220;Certainly, greater deficit reduction is possible,&#8221; she added. &#8220;The President has proposed a series of measures that would reduce our deficits over time while investing in the economy, and this is something we need to do going forward.&#8221;
President Joe Biden <a href="https://www.dailywire.com/news/biden-signs-bill-to-increase-debt-ceiling-avoid-federal-default" target="_blank" rel="noopener">signed</a> the Fiscal Responsibility Act in June that will suspend the debt limit until January 2025 and implement restraints on spending that the Congressional Budget Office estimated would reduce budget deficits by $1.5 trillion over the next decade.

US-POLITICS-ECONOMY-DEBT

US National Debt Surpasses $33T For First Time In History

Washington D.C.

Treasury Secretary <a href="https://www.dailywire.com/topic/janet-yellen">Janet Yellen</a> is facing criticism for bowing repeatedly to a <a href="https://www.dailywire.com/topic/china">Chinese</a> official during a visit to Beijing on Saturday.
Video <a href="https://www.youtube.com/watch?v=20d4DtvIMtk">published by Reuters</a> shows Yellen smiling and while giving a slight bow three times as she shook hands with Chinese Vice Premier He Lifeng, who did not bow during the seconds-long clip.
“Never, ever, ever,” Bradley Blakeman, a top White House aide to President George W. Bush, <a href="https://nypost.com/2023/07/08/us-treasury-secretary-janet-yellen-commits-embarrassing-bow-during-beijing-visit/?utm_source=twitter&amp;utm_medium=social&amp;utm_campaign=nypost">told The New York Post</a> in response to the exchange. “An American official does not bow. It looks like she’s been summoned to the principal’s office, and that’s exactly the optics the Chinese love.”
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
Treasury Secretary Janet Yellen greets Chinese Vice Premier He Lifeng in Beijing earlier today <a href="https://t.co/iYcA7Jmuz6">pic.twitter.com/iYcA7Jmuz6</a>
&mdash; RNC Research (@RNCResearch) <a href="https://twitter.com/RNCResearch/status/1677812728277204992?ref_src=twsrc%5Etfw">July 8, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
The publication also reported Jerome Cohen, an emeritus professor at New York University and expert in Chinese law and government, said, “Bowing is not part of the accepted protocol.&#8221;
While some argued the display was not a big deal, others reacted with disgust on social media as the video of Yellen bowing was shared by various accounts, including one for the Republican National Committee.
&#8220;I can’t stand this woman,&#8221; <a href="https://twitter.com/MarinaMedvin/status/1677848685386821635">tweeted</a> defense attorney Marina Melvin. &#8220;BTW she’s bowing to him because she genuinely wants to. It’s natural for her. She’s an obsequious commie lover.&#8221;
Grabien founder Tom Elliott <a href="https://twitter.com/tomselliott/status/1677835387559895040">said</a>, &#8220;Her bowing is an embarrassment to every non-communist American.&#8221;
&#8220;How many times does she think she has to bow?&#8221; <a href="https://twitter.com/mirandadevine/status/1677834119462416385">asked</a> New York Post columnist Miranda Devine, who added a &#8220;grimacing face&#8221; emoji.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
How many times does she think she has to bow? 😬 <a href="https://t.co/NAvHnLRjCf">https://t.co/NAvHnLRjCf</a>
&mdash; Miranda Devine (@mirandadevine) <a href="https://twitter.com/mirandadevine/status/1677834119462416385?ref_src=twsrc%5Etfw">July 9, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Yellen had an introductory meeting with He to &#8220;build on&#8221; U.S. President Joe Biden and Chinese leader Xi Jinping&#8217;s &#8220;guidance to deepen engagement between key senior officials on macroeconomic issues,&#8221; <a href="https://home.treasury.gov/news/press-releases/jy1601">said</a> a readout from the Treasury Department.
&#8220;The meeting was candid, constructive, and comprehensive,&#8221; the readout added. &#8220;While raising issues of concern, Secretary Yellen discussed the Administration’s approach to seek healthy economic competition with China, with a level playing field for American workers and businesses. They also exchanged views on global and domestic macroeconomic outlooks.&#8221;
The readout continued, &#8220;Secretary Yellen also conveyed that even when the United States and China have disagreements, it is vital that the two countries find ways to work together on issues of shared – and global – concern, including debt distress in low-income and emerging economies and climate finance.&#8221;
<a href="https://www.washingtonpost.com/business/2023/07/08/yellen-beijing-meeting-he-lifeng/">According to The Washington Post</a>, Yellen flubbed He&#8217;s name, calling him &#8220;Vice Premier Hu,&#8221; as they spoke about shoring up ties between their respective nations during a <a href="https://www.dailywire.com/news/u-s-cheers-candid-talks-with-china-after-months-of-rising-tensions">time of rising tensions</a>.

US Treasury Secretary Janet Yellen Visits Beijing

Treasury Secretary Ripped For Bowing To Chinese Official

China

U.S.

<a href="https://www.dailywire.com/topic/treasury-department" target="_blank" rel="noopener">Treasury</a> Secretary <a href="http://dailywire.com/topic/janet-yellen" target="_blank" rel="noopener">Janet Yellen</a> warned <a href="http://dailywire.com/topic/congress" target="_blank" rel="noopener">congressional</a> leadership on Monday that the federal government could face a <a href="http://dailywire.com/topic/national-debt" target="_blank" rel="noopener">debt</a> default in less than three weeks if an agreement on the <a href="http://dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a> is not quickly reached with President <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Joe Biden</a>.
The debt ceiling, a policy that prevents the federal government from spending beyond a predetermined national debt limit of $31.4 trillion, surpassed the threshold earlier this year. Yellen said in her <a href="https://home.treasury.gov/news/press-releases/jy1483" target="_blank" rel="noopener">letter</a> to lawmakers that the Treasury Department expects to default on obligations as early as June 1 unless the debt limit is either suspended or increased.
“We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States,” she wrote. “In fact, we have already seen Treasury’s borrowing costs increase substantially for securities maturing in early June.”
Yellen added that the exact date of the debt default is “impossible to predict,” although the June 1 estimate is based on federal receipt, outlay, and debt data.
“If Congress fails to increase the debt limit, it would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests,” she continued. “I continue to urge Congress to protect the full faith and credit of the United States by acting as soon as possible.”
The letter from Yellen, which is one of several similar alerts she has issued regarding the consequences of a debt default, comes days after the Congressional Budget Office warned in a <a href="https://www.cbo.gov/publication/59160" target="_blank" rel="noopener">report</a> that the “extent to which the Treasury will be able to fund the government’s ongoing operations will remain uncertain throughout May.” The document added that the “extraordinary measures” officials have used to fund operations could expire “at some point in the first two weeks of June.”
House Speaker Kevin McCarthy (R-CA), House Minority Leader Hakeem Jeffries (D-NY), Senate Majority Leader Chuck Schumer (D-NY), and Senate Minority Leader Mitch McConnell (R-KY), the leaders to whom Yellen addressed her letter, have negotiated in recent days with officials from the Biden administration about possible mechanisms to amend the debt limit. Disagreements center on whether the move will occur with spending reforms and budget cuts.
Members of the House Freedom Caucus, a bloc of conservatives without which McCarthy is unable to pass legislation due to the narrow Republican majority in the House, have <a href="https://www.dailywire.com/news/house-freedom-caucus-chairman-responds-as-white-house-lobs-spurious-claims-at-spending-cut-proposal" target="_blank" rel="noopener">said</a> they would vote to raise the debt ceiling in exchange for a framework that returns expenditures to fiscal year 2022 levels, increase the debt limit only for the next year, and cap annual spending growth at 1% over the next decade. The budget <a href="https://www.dailywire.com/news/kevin-mccarthy-unveils-plan-to-responsibly-raise-debt-limit" target="_blank" rel="noopener">proposal</a> unveiled by McCarthy mirrored the framework and successfully <a href="https://www.dailywire.com/news/gop-led-house-passes-mccarthys-plan-to-raise-debt-limit" target="_blank" rel="noopener">passed</a> through the House last month alongside a one-year increase in the debt ceiling.
Biden is slated to meet with Democratic and Republican leaders for a second time on Tuesday. “I really think there’s a desire on their part, as well as ours, to reach an agreement, and I think we’ll be able to do it,” the commander-in-chief <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2023/05/14/remarks-by-president-biden-in-press-gaggle-12/" target="_blank" rel="noopener">told</a> reporters over the weekend. McCarthy, on the other hand, <a href="https://www.nbcnews.com/politics/white-house/treasury-says-us-risks-breaching-debt-ceiling-june-1-rcna84523" target="_blank" rel="noopener">told</a> reporters that the two sides are still “far apart” and contended that the administration is “not talking anything serious.”
A default would likely cause a recession as the federal government, a major borrower of funds that investors across the world broadly consider to be stable, neglects to repay obligations. The national debt, which now surpasses $31.7 trillion, is meanwhile a source of persistent financial risk and a damper on long-term economic growth.

Yellen Says Nation Could Face Debt Default In Less Than Three Weeks

Yellen Says Nation Could Face Default In Less Than Three Weeks

Debt Ceiling

A leading <a href="https://www.dailywire.com/topic/treasury-department" target="_blank" rel="noopener">Treasury Department</a> official refuses to admit President <a href="https://www.dailywire.com/topic/joe-biden" target="_blank" rel="noopener">Joe Biden</a> waited until the threat of a historic default became imminent to negotiate the <a href="https://www.dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a>.
<a href="https://www.dailywire.com/topic/cnn" target="_blank" rel="noopener">CNN</a> anchor Dan Bash pressed Treasury Deputy Secretary Wally Adeyemo about the issue on Sunday, weeks ahead of what could be an unprecedented government default.
&#8220;If the threat from default is so dire, why did the president wait until this month to have real negotiations about how to and where to have spending cuts in order to avert default?&#8221; Bash asked.
Adeyemo dismissed the premise of the question.
He argued that Biden &#8220;didn&#8217;t wait&#8221; because he <a href="https://www.whitehouse.gov/omb/budget/" target="_blank" rel="noopener">proposed a budget</a> in March to reduce the debt by nearly $3 trillion over the next decade. Republicans passed their own plan in the following month, Adeyemo noted, and Biden then invited congressional leaders to discuss &#8220;fiscal policy.&#8221;
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
&quot;If the threat from default is so dire, why did the president wait until this month to have real negotiations?&quot;
Deputy Treasury Secretary Wally Adeyemo: &quot;The president didn&#39;t wait&quot; 🤔 <a href="https://t.co/yC61sIUtPt">pic.twitter.com/yC61sIUtPt</a>
&mdash; RNC Research (@RNCResearch) <a href="https://twitter.com/RNCResearch/status/1657748223593701377?ref_src=twsrc%5Etfw">May 14, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Congressional leaders met with Biden at the White House last week but failed to come up with an agreement. A planned second meeting on Friday was <a href="https://www.nbcnews.com/politics/congress/debt-ceiling-meeting-congressional-leaders-biden-delayed-rcna84020" target="_blank" rel="noopener">postponed</a>, but Adeyemo contended the conversations were &#8220;constructive&#8221; and stated that Biden has &#8220;made clear&#8221; he does not think <a href="https://www.dailywire.com/news/debt-ceiling-battle-lines-drawn-ahead-of-white-house-meeting" target="_blank" rel="noopener">invoking the 14th Amendment</a> to get around Congress would &#8220;solve our problems now.&#8221;
Biden and Democrats in Congress are advocating for a “clean” bill to raise the debt ceiling above the current limit of roughly $31.4 trillion, a stance which set them up for a clash with Republicans who want to discuss concessions on spending cuts after the GOP-led House passed their proposal in April.
&#8220;It&#8217;s clear that the only responsible way to raise the debt ceiling is to limit reckless spending and get inflation under control,&#8221; House Speaker Kevin McCarthy (R-CA) <a href="https://twitter.com/SpeakerMcCarthy/status/1657086310618902529" target="_blank" rel="noopener">tweeted</a> on Friday.
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As talks continue, &#8220;There is no reason we shouldn&#8217;t raise the debt limit and prevent default in this country, a default that could lead to a massive recession that would cost us millions of jobs,&#8221; Adeyemo said.
Time is running short as the Congressional Budget Office <a href="https://www.cbo.gov/publication/59160" target="_blank" rel="noopener">warned there is &#8220;significant risk&#8221;</a> that the government would no longer be able to pay all of its debts at some point during the first two weeks of June if the debt limit remains unchanged despite “<a href="https://www.dailywire.com/news/yellen-warns-congress-extraordinary-measures-have-begun-after-debt-ceiling-breached" target="_blank" rel="noopener">extraordinary measures</a>” being taken by the Treasury Department.
&#8220;The president&#8217;s view is that we should be able to raise the debt limit and also be able to get a deal with regard to fiscal policy,&#8221; Adeyemo said on Sunday, sticking with the view that avoiding a default should be handled as a stand-alone issue.

Wally Adeyemo, deputy US Treasury secretary,

Treasury Official Insists Biden ‘Didn’t Wait’ To Negotiate As Debt Default Nears

Treasury Official Insists Biden 'Didn't Wait' To Negotiate As Debt Default Nears

Economy

Executive

Joe Biden

The <a href="https://www.dailywire.com/topic/congressional-budget-office-cbo" target="_blank" rel="noopener">Congressional Budget Office</a> warned on Friday that there exists considerable “uncertainty” with respect to government <a href="https://www.dailywire.com/topic/budget" target="_blank" rel="noopener">funds</a> over the next several weeks as congressional leaders negotiate over a potential <a href="https://www.dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a> increase with the <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">White House</a>.
The debt ceiling, a policy established by <a href="http://dailywire.com/topic/congress" target="_blank" rel="noopener">Congress</a> that prevents the federal government from spending beyond a predetermined national debt limit of $31.4 trillion, surpassed the threshold earlier this year. Treasury Secretary Janet Yellen <a href="https://www.dailywire.com/news/yellen-warns-of-debt-default-as-early-as-june-1" target="_blank" rel="noopener">warned</a> last week that the nation could face a default as soon as June 1 unless the debt limit is suspended or increased.
The Congressional Budget Office, a nonpartisan agency which provides lawmakers with budgetary and economic analysis, cautioned in a <a href="https://www.cbo.gov/publication/59160" target="_blank" rel="noopener">report</a> that the “extent to which the Treasury will be able to fund the government’s ongoing operations will remain uncertain throughout May.” The document added that the “extraordinary measures” officials have used to fund operations for the past several weeks could expire “at some point in the first two weeks of June.”
“If the debt limit is not raised or suspended before the Treasury’s cash and extraordinary measures are exhausted, the government will have to delay making payments for some activities, default on its debt obligations, or both,” the report commented.
Should remaining cash and extraordinary measures last until June 15, on the other hand, the government may be able to fund operations “through at least the end of July” as consumers and businesses pay expected quarterly taxes. “Certain large flows of cash into and out of the Treasury follow a regular schedule that directly affects the amount of debt subject to limit,” the agency added.
Treasury officials can, among other “extraordinary measures,” continue to pause investments into the Thrift Savings Plan and continue to suspend the issuance of new securities for the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund.
Continued disagreement about an amendment to the debt limit between Democrats and Republicans centers on whether the move will occur alongside broader spending reforms. President Joe Biden <a href="https://www.dailywire.com/news/republicans-have-done-our-part-mccarthy-blasts-biden-after-first-debt-ceiling-negotiation-in-months" target="_blank" rel="noopener">discussed</a> mechanisms to increase the debt limit this week with House Speaker Kevin McCarthy (R-CA), House Minority Leader Hakeem Jeffries (D-NY), Senate Majority Leader Chuck Schumer (D-NY), and Senate Minority Leader Mitch McConnell (R-KY).
Biden, who has contended that Republicans are risking economic calamity by asking for spending reforms, said in <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2023/05/09/remarks-by-president-biden-on-debt-ceiling-negotiations/" target="_blank" rel="noopener">remarks</a> that he found the meeting to be “productive,” while McCarthy, who noted that Democrats waited more than three months to resume negotiations launched earlier this year, <a href="https://www.speaker.gov/speaker-mccarthys-response-after-white-house-meeting/" target="_blank" rel="noopener">commented</a> that he “did not find progress” in the discussions.
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“The only thing we’re asking is that next year we spend the same amount of money we spent five months ago,” McCarthy said after the meeting, noting that the debt limit talks were the first time all four congressional leaders have met with Biden since the new Congress started earlier this year. “Unfortunately in this meeting I heard nothing new.”
A default would indeed cause a recession should the federal government, a major borrower of funds that investors broadly consider stable, neglect to repay obligations. The national debt, which surpassed the $31.4 trillion debt limit this year to reach $31.7 trillion, is meanwhile a source of persistent financial risk and a damper on economic growth.

Extent To Which Government Can Be Funded Without Debt Ceiling Is ‘Uncertain,’ Agency Warns

Government Funding For The Next Several Weeks Is ‘Uncertain,' Agency Warns

Congressional Budget Office (CBO)

Sen. <a href="http://dailywire.com/topic/joe-manchin?_gl=1*m94erc*_ga*NzUzNDA5ODIxLjE2NzkzMjkzNzM.*_ga_CZKR9ZYKJP*MTY4Mzg5NjkxNC4yMTQuMS4xNjgzODk3Njg5LjU5LjAuMA.." target="_blank" rel="noopener">Joe Manchin</a> (D-WV) contended alongside more than three dozen Republican colleagues that the <a href="https://www.dailywire.com/topic/treasury-department" target="_blank" rel="noopener">Treasury Department</a> is pressuring state insurance regulators to consider factors linked to the environmental, social, and corporate governance movement, also known as <a href="http://dailywire.com/topic/esg" target="_blank" rel="noopener">ESG</a>.
A <a href="https://www.manchin.senate.gov/newsroom/press-releases/manchin-leads-effort-to-block-esg-agenda-in-state-regulated-insurance" target="_blank" rel="noopener">letter</a> from members of the <a href="https://www.dailywire.com/topic/u-s-senate" target="_blank" rel="noopener">Senate</a> asserted last week that the Federal Insurance Office, which was <a href="https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/federal-insurance-office" target="_blank" rel="noopener">created</a> to “monitor all aspects of the insurance sector,” has improperly sought to influence state-level authorities and insurance firms to consider climate risk. The entity sought public input on “how climate change could affect the insurance market” in August 2021 and proposed an “unworkable data collection effort” in order to determine which “insurance coverage areas are most susceptible to climate-related risks” in October 2022.
“Though the FIO’s actions to date do not enact formal rules or regulations, they do place pressure on state insurance regulators and insurers themselves,” the letter addressed to Treasury Secretary Janet Yellen said. “We are concerned that this may ultimately result in state insurance regulators and insurers feeling coerced into adopting one-size-fits-all climate-risk mitigation policies rather than building on existing efforts to mitigate risks and manage policyholders’ exposure to changing weather patterns as deemed appropriate by the insurers and state insurance regulators on the ground, which has served the industry and public well.”
The data collection effort from the Federal Insurance Office would assemble information about property and casualty insurance risks purportedly stemming from climate change in various locales across the nation. Yellen <a href="https://home.treasury.gov/news/press-releases/jy1030" target="_blank" rel="noopener">commented</a> last year that the impact of Hurricane Ian in Florida demonstrates how “Americans are being affected by the increasing costs of climate change.”
The letter added that the actions could violate more than a century of precedent in which insurance is regulated by individual states rather than the federal government.
“The Biden administration is ignoring steps insurers and state insurance regulators are already taking and instead utilizing the FIO to continue pushing ESG policies as part of its unrealistic environmental agenda,” continued the letter, which was likewise signed by lawmakers such as Sen. John Thune (R-SD), Sen. Tim Scott (R-SC), and Sen. John Barrasso (R-WY).
Authors of the letter also cited a recent <a href="https://www.dailywire.com/news/bidens-woke-investment-rule-stays-intact-as-house-fails-to-override-veto" target="_blank" rel="noopener">veto</a> from President Joe Biden that overturned a resolution to end a Labor Department rule which permits retirement fiduciaries to consider climate change and other ESG factors “when they make investment decisions and when they exercise shareholder rights, including voting on shareholder resolutions and board nominations.” Manchin, who faces re-election next year in a broadly conservative state, was one of only three Democrats in Congress to support the resolution, which would have preserved prior rules that required fiduciaries to “base investment decisions on financial factors” alone.
Skeptics of the ESG movement contend that the philosophy intermixes political causes, such as decreasing carbon emissions, in a manner that compromises or distracts from profitability. “The administration’s unrelenting campaign to advance a radical social and environmental agenda is only exacerbating these challenges,” Manchin said in a <a href="https://www.dailywire.com/news/absolutely-infuriating-manchin-blasts-biden-for-vetoing-rebuke-of-esg" target="_blank" rel="noopener">statement</a> after the veto.
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Endorsements of the ESG movement from the White House also correspond with attempts to more strictly regulate appliances such as gas stoves and dishwashers, as well as crack down on emissions at power plants fueled by coal and natural gas. Manchin threatened this week to <a href="https://www.dailywire.com/news/manchin-shreds-biden-over-expected-crackdown-on-power-plants-reveals-how-he-will-respond" target="_blank" rel="noopener">oppose</a> every nominee sent to the Environmental Protection Agency until the power plant rules are reversed.

Joe Manchin

Manchin Joins 37 Republicans To Oppose Another Biden ESG Move

Climate Change

<a href="https://www.dailywire.com/topic/treasury-department" target="_blank" rel="noopener">Treasury</a> Secretary <a href="https://www.dailywire.com/topic/janet-yellen" target="_blank" rel="noopener">Janet Yellen</a> contacted multiple prominent American <a href="http://dailywire.com/topic/business" target="_blank" rel="noopener">business</a> leaders on Monday to detail the financial <a href="http://dailywire.com/topic/economy" target="_blank" rel="noopener">risk</a> stemming from the current <a href="http://dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a> controversy.
The debt ceiling, a policy established by <a href="http://dailywire.com/topic/congress" target="_blank" rel="noopener">Congress</a> that prevents the federal government from spending beyond a predetermined national debt limit of $31.4 trillion, surpassed the threshold earlier this year. Yellen <a href="https://www.dailywire.com/news/yellen-warns-of-debt-default-as-early-as-june-1" target="_blank" rel="noopener">warned</a> last week that the nation could face a default as soon as the first day of June unless the debt limit is suspended or increased.
The veteran economist held multiple one-on-one conversations with individual executives about the &#8220;dangerous consequences of the current brinkmanship&#8221; in recent days, one of two unnamed sources familiar with the matter said in a <a href="https://www.reuters.com/business/yellen-is-calling-ceos-personally-warn-us-debt-ceiling-sources-2023-05-08/?taid=64598be5454148000194d30c&amp;utm_campaign=trueAnthem:+Trending+Content&amp;utm_medium=trueAnthem&amp;utm_source=twitter" target="_blank" rel="noopener">report</a> from Reuters. The sources declined to name the executives with whom Yellen discussed the phenomenon.
Biden administration officials have repeatedly asserted that Republican lawmakers are risking a worldwide recession by insisting that any amendment to the debt ceiling should be accompanied by meaningful spending cuts or limits upon future expenditures. Yellen said in an <a href="https://www.dailywire.com/news/janet-yellen-suggests-republicans-are-holding-a-gun-to-the-head-of-the-american-people-over-debt-ceiling" target="_blank" rel="noopener">interview</a> on Sunday that Republicans are thereby holding a “gun to the head of the American people,” contending that the effort to achieve “agreement on budget priorities” before increasing the debt limit “simply is unacceptable” due to the recession risks.
House Speaker Kevin McCarthy (R-CA) and President Joe Biden <a href="https://www.dailywire.com/news/white-house-takes-adversarial-posture-toward-mccarthy-ahead-of-budget-cut-meeting-heres-what-they-want-him-to-do" target="_blank" rel="noopener">met</a> in early February to discuss possible mechanisms to raise or eliminate the debt limit while reconsidering budget priorities, but the commander-in-chief delayed further meetings for several months. The two officials are scheduled to meet for the second time alongside other lawmakers on Tuesday.
White House Press Secretary Karine Jean-Pierre said in a Monday <a href="https://www.whitehouse.gov/briefing-room/press-briefings/2023/05/08/press-briefing-by-press-secretary-karine-jean-pierre-32/" target="_blank" rel="noopener">briefing</a> that Biden would attempt to create separate negotiations processes for budget cuts and the debt ceiling. “Remember, that’s regular order,” she told reporters. “That is the way that we’re supposed to be doing this: having a negotiation on budget, not connecting it to the debt ceiling.”
Members of the House Freedom Caucus, a bloc of conservative Republicans, have <a href="https://www.dailywire.com/news/house-freedom-caucus-chairman-responds-as-white-house-lobs-spurious-claims-at-spending-cut-proposal" target="_blank" rel="noopener">said</a> they would consider voting to raise the debt ceiling in exchange for a framework that returns expenditures to fiscal year 2022 levels, raises the debt ceiling only for the next year, and limits annual spending growth to 1% over the next decade. McCarthy unveiled a budget <a href="https://www.dailywire.com/news/kevin-mccarthy-unveils-plan-to-responsibly-raise-debt-limit" target="_blank" rel="noopener">proposal</a> that mirrored the framework and <a href="https://www.dailywire.com/news/gop-led-house-passes-mccarthys-plan-to-raise-debt-limit" target="_blank" rel="noopener">passed</a> the measure through the House two weeks ago. The narrowly Republican majority requires votes from the House Freedom Caucus to pass bills.
Jean-Pierre said last week that “the only practical path to avoid default is for Congress to suspend the debt limit without conditions” because of the “limited time” before the potential default. House Freedom Caucus Chairman Scott Perry (R-PA) previously <a href="https://www.dailywire.com/news/freedom-caucus-chair-blasts-white-house-for-punting-debt-ceiling-talks-for-months-then-saying-there-is-limited-time-to-negotiate" target="_blank" rel="noopener">told</a> The Daily Wire that the remarks were “like a pyromaniac starting a fire and watching it burn for months suddenly declaring it needs to be put out while simultaneously pouring more gas on it.”
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Forty-three Republican members of the Senate recently <a href="https://www.dailywire.com/news/debt-ceiling-battle-lines-drawn-ahead-of-white-house-meeting" target="_blank" rel="noopener">endorsed</a> a letter declaring that they would oppose a “clean” debt ceiling bill separate from any spending cuts or other policy concessions. Meanwhile, Senate Majority Leader Chuck Schumer (D-NY) announced that the upper chamber would hold hearings on the bill to “expose the true impact of this reckless legislation on everyday Americans.”

Treasury Secretary Janet Yellen Testifies To Senate Committee On President Biden’s FY2024 Budget

Janet Yellen Warns CEOs About Recession Risks From Debt Ceiling Battle: Report

Janet Yellen Warns CEOs About Risks From Debt Limit Battle

The United States risks defaulting on its debt as early as June 1, Treasury Secretary <a href="https://www.dailywire.com/topic/janet-yellen" target="_blank" rel="noopener">Janet Yellen</a> announced on Monday.
The one-month estimate appeared <a href="https://home.treasury.gov/news/press-releases/jy1454" target="_blank" rel="noopener">in a letter sent to leaders in Congress</a>, where Republicans and Democrats have been engaged in political fighting over raising the debt ceiling.
&#8220;In my January 13 letter, I noted that it was unlikely that cash and extraordinary measures would be exhausted before early June. After reviewing recent federal tax receipts, our best estimate is that we will be unable to continue to satisfy all of the government’s obligations by early June, and potentially as early as June 1, if Congress does not raise or suspend the debt limit before that time,&#8221; Yellen said.
&#8220;This estimate is based on currently available data, as federal receipts and outlays are inherently variable, and the actual date that Treasury exhausts extraordinary measures could be a number of weeks later than these estimates,&#8221; Yellen added.
Yellen notified Congress in January that the United States had hit the statutory limit of roughly $31.4 trillion and advised that her agency take “<a href="https://www.dailywire.com/news/yellen-warns-congress-extraordinary-measures-have-begun-after-debt-ceiling-breached" target="_blank" rel="noopener">extraordinary measures</a>” so the government could continue to pay its bills, but only in the short term.
Since that time, experts have <a href="https://thehill.com/business/3869077-us-could-default-on-debt-as-soon-as-june-analysis/" target="_blank" rel="noopener">warned of a default</a> this summer that could <a href="https://www.nytimes.com/2023/03/07/us/politics/debt-default-economy.html" target="_blank" rel="noopener">cripple the U.S. economy</a> without a deal to raise the borrowing limit for the federal government, which the Treasury Department <a href="https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/debt-limit" target="_blank" rel="noopener">says Congress has acted upon 78 times since 1960</a>.
On Wednesday, the GOP-led House narrowly <a href="https://www.dailywire.com/news/gop-led-house-passes-mccarthys-plan-to-raise-debt-limit" target="_blank" rel="noopener">passed</a> a bill called the &#8220;Limit, Save, Grow Act of 2023,&#8221; which would <a href="https://www.dailywire.com/news/four-gop-holdouts-explain-why-they-voted-against-mccarthy-championed-debt-ceiling-bill">suspend the debt ceiling</a> through March 31, 2024, or until an increase in debt of $1.5 trillion — whichever comes first — in exchange for a host of spending cuts. The Congressional Budget Office <a href="https://thehill.com/homenews/house/3971403-gop-debt-ceiling-bill-would-save-about-4-8-trillion-over-10-years-cbo-estimate/" target="_blank" rel="noopener">projected</a> the proposal would slash federal deficits by $4.8 trillion over ten years.
President Joe Biden and his fellow Democrats have insisted on a “clean” debt ceiling bill separate from any spending cuts or any policy concessions. Meanwhile, House Speaker Kevin McCarthy (R-CA) has pushed for negotiations.
Earlier on Monday, Majority Leader <a href="https://www.dailywire.com/topic/chuck-schumer" target="_blank" rel="noopener">Chuck Schumer</a> (D-NY) announced the <a href="https://www.dailywire.com/topic/u-s-senate" target="_blank" rel="noopener">Senate</a> would <a href="https://www.dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">hold hearings</a> on the bill starting on Thursday to &#8220;expose the true impact of this reckless legislation on everyday Americans.&#8221;
After Yellen released her letter, the White House announced that Biden had called congressional leaders, including McCarthy and Schumer, to invite them to a meeting at the White House on May 9.
Yellen said it is &#8220;impossible to predict with certainty the exact date when Treasury will be unable to pay the government’s bills, and I will continue to update Congress in the coming weeks as more information becomes available.&#8221;
Though Yellen said her agency is continuing to take action by suspending the issuance of State and Local Government Series Treasury securities, she warned Congress that time is of the essence.
&#8220;We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States,&#8221; she wrote. &#8220;If Congress fails to increase the debt limit, it would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests.&#8221;
Yellen concluded: &#8220;I respectfully urge Congress to protect the full faith and credit of the United States by acting as soon as possible.&#8221;

US Treasury Secretary Janet Yellen

Yellen Warns Of Debt Default As Early As June 1

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