Debt ceiling war raises angst among Floridians
At 78 years old, Santiago Matheus of Dania Beach is carefully watching the looming political showdown in Washington over whether the nation’s debt ceiling should be raised anew.
“Of course I’m worried,” he said. “It would be an unprecedented situation if they allow the debt limit to be not increased on time.”
Matheus, who was once a Wall Street securities broker and who recently emerged from personal bankruptcy, said he’d lose 40% of his income if his Social Security payments are halted because the government can no longer pay its bills.
“If that was to stop I would be in serious trouble,” he said. “You never really think of not relying on that.”
The potential dilemma emerged earlier this year when the U.S. government hit the $31.4 trillion limit on authorized borrowing. Since then, Treasury Secretary Janet Yellen, a past chair of the Federal Reserve, has used so-called extraordinary measures so the government could pay its bills.
“Failing to increase the debt limit would have catastrophic economic consequences,” according to a policy statement on the Treasury Department website. “It would cause the government to default on its legal obligations — an unprecedented event in American history. That would precipitate another financial crisis and threaten the jobs and savings of everyday Americans — putting the United States right back in a deep economic hole, just as the country is recovering from the recent recession.”