The Blubber

Per Bloomberg

The National Association of Government Employees (NAGE) have decided to come together and sue US President Biden and Treasury Secretary Janet Yellen should political talks on national debt ceiling raises fail.

These US gov't employees asked a federal judge to order Yellen to continue borrowing to keep the government open should the talks fail. The move by the gov't employees was to ensure that what happened in 2019 wouldn't happen again.

In 2019, the US government experienced a shutdown when the Mexican border wall by President Donald Trump wasn't supported. During that time, the Democratic Congressional leaders refused to fund it.

NAGE is a union that represents government employees in the military and federal agency field, comprised of 75,000 members. The union's lawyers gave a statement regarding what they are trying to accomplish.

NAGE: “While not challenging here in principle the controversial proposition that Congress can limit the indebtedness of the United States, plaintiff asserts that Congress may not do so without at least setting the order and priority of payments once that limit is reached, instead of leaving it to the president to do so,”

Yellen has warned that as early as June 1, the US government could run out of cash. She warned that not raising the US debt ceiling would lead to what she described as an "economic catastrophe."

In order to avoid defaulting, it was noted that Congress should vote either to increase or suspend the debt limit before the Treasury exhausts its emergency funds.

Recently, the Biden administration has forgiven $42 billion in student loan debt for public service workers. This was part of an extension that would affect 615,000 borrowers in October 2021.

To be eligible for debt forgiveness, participants would have to complete 10 years of public service. Before this, only less than 1% of applicants as of 2018 were qualified.

See flow at unusualwhales.com/flow.

Other News:

• Janet Yellen says Treasury will run out of money June 1, lead to an economic catastrophe
• Biden administration forgives $42 billion student loan debt for public service workers

Resources:

Bloomberg