(FreedomBeacon.com)- There’s been a lot of talk in the last few years about the future of the U.S. economy, and whether it will plunge into a recession at some point in 2023.
According to one international attorney and CEO of an insurance company, there’s something far worse than that ahead.
Todd Callendar said recently that a “financial Armageddon” is imminent under the Biden administration, since it’s very possible the country could default on its debt. If this were to happen, it would be disastrous not just for America, but for many countries around the world.
As Callendar said:
“Overnight, everything you think you own changes value overnight.”
Calendar, who is an attorney focusing on international insurance and disability rights, said that there are multiple financial threats in play here, and it’s all coming at a time when pressures are being felt in many industries, including fuel and food supplies.
On Wednesday of this week, the Congressional Budget Office said that if Congress isn’t able to address the country’s debt ceiling soon, the federal government will unlikely be able to pay all of its debt obligations sometime from July through September.
The CBO said that’s around the time they estimate that the Treasury Department would exhaust any ability to borrow more funds by using what they’re calling “extraordinary measures.”
The range of months is due to the amount of revenue that is to be collected, as well as money that is to be spent, including the timing of it all. One big factor in this, the CBO said, is what income tax receipts end up being in April.
It’s possible that they’re lower than they were last year due to the downturn in the stock market. If that were to prove true, it’s possible the federal government wouldn’t be able to repay all its debts by July.
The CBO said that it would revisit this projection by May once the tax filing season is over, so that it has a much clearer picture regarding the total amount of tax revenue the federal government will be bringing in. Once that happens, it’s possible the agency will have a better handle on more exact timelines.
This report emphasizes the need for Congress and the White House to come to some sort of agreement on raising the debt ceiling in the next month or so. To this point, though, little progress has been made in negotiations between House GOP leadership and the White House.
Along with this short-term warning, the CBO projected that over the next 10 years, there are going to be significant increases in budget deficits at the federal level, as well as a major increase in debt.
This is due to the fact that both parties have increased spending in recent years, and it’s come when higher interest rates were in place.
The CBO added that it expects inflation to finally decline at some point this year, though the unemployment rate should continue to increase through the early part of 2024.