{"id":20832,"date":"2023-05-11T23:48:25","date_gmt":"2023-05-11T23:48:25","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/goldman-sachs-yellen-warn-of-us-defaults-catastrophic-consequences-there-is-real-risk-to-us-dollar-economics-bitcoin-news\/"},"modified":"2023-05-11T23:48:25","modified_gmt":"2023-05-11T23:48:25","slug":"goldman-sachs-yellen-warn-of-us-defaults-catastrophic-consequences-there-is-real-risk-to-us-dollar-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/goldman-sachs-yellen-warn-of-us-defaults-catastrophic-consequences-there-is-real-risk-to-us-dollar-economics-bitcoin-news\/","title":{"rendered":"Goldman Sachs, Yellen Warn of US Default’s ‘Catastrophic Consequences’ \u2014 ‘There Is Real Risk to US Dollar’ \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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A Goldman Sachs executive who also serves as the chair of a Treasury advisory committee has warned that a U.S. default poses \u201creal risk to the U.S. dollar.\u201d She stressed: \u201cAnything that moves us away from being viewed as the world\u2019s reserve currency, of being the safest most liquid asset in the world, is bad for the American people, bad for the dollar, and bad for the U.S. government.\u201d<\/strong><\/p>\n

Goldman Sachs Agrees With Treasury Secretary Yellen on US Default Risks<\/h2>\n

Goldman Sachs executive Beth Hammack warned about the risks of the U.S. defaulting on its debt obligations in an interview on Bloomberg Television Tuesday. Hammack is co-head of Goldman Sachs\u2019 Global Financing Group within the Investment Banking Division (IBD) and a member of the firm\u2019s Management Committee. She also serves as the chair of the U.S. Treasury Department\u2019s Borrowing Advisory Committee.<\/p>\n

Regarding a possible U.S. debt default, she said: \u201cThis is a conundrum for all international investors. They don\u2019t understand why we\u2019ve made these appropriations and we\u2019re not willing to pay the bills that we already agreed we would pay. And so I think that\u2019s really confusing.\u201d<\/p>\n

The Goldman Sachs executive warned, \u201cI think there is real risk to the U.S. dollar as we leave this in a more protracted state of negotiations,\u201d emphasizing:<\/p>\n

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Anything that moves us away from being viewed as the world\u2019s reserve currency, of being the safest most liquid asset in the world, is bad for the American people, bad for the dollar, and bad for the U.S. government.<\/p>\n<\/blockquote>\n

The chair of the Treasury Borrowing Advisory Committee proceeded to explain that the dislocations being created in the U.S. Treasury bill markets are \u201cinefficient\u201d and they \u201ccreate extra cost for the taxpayers.\u201d<\/p>\n

The Treasury bill markets began factoring in the risks of the U.S. defaulting on its debt obligations from next month onward after Treasury Secretary Janet Yellen and the Congressional Budget Office warned<\/a> that the Treasury may not be able to pay all of the government\u2019s bill in early June.<\/p>\n

The Goldman Sachs executive said she agreed with Treasury Secretary Yellen that the U.S. defaulting on its debt obligations would have \u201ccatastrophic consequences for the U.S. economy.\u201d Moreover, she cautioned that there would be \u201ca huge ripple effect\u201d if the Treasury stops making some payments.<\/p>\n

On Tuesday, Yellen said at a press conference ahead of a G7 meeting in Japan that a default would \u201crisk undermining U.S. global economic leadership and raise questions about our ability to defend our national security interests.\u201d<\/p>\n

A lawmaker said this week that a default poses risks<\/a> to the U.S. dollar\u2019s reserve currency status. Federal Reserve Chairman Jerome Powell<\/a> has also warned of \u201cuncertain and adverse consequences\u201d from the U.S. defaulting on its debt obligations.<\/p>\n

What do you think about the Goldman Sachs executive\u2019s warning? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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