US Treasury Cash Pile Drops to Lowest Since 2017

The transcript discusses the low cash balance of the U.S. Treasury, which is significantly below the usual $500 billion, currently at $38.8 billion. This situation raises concerns about the Treasury's ability to meet its financial obligations, including interest payments and federal salaries. The potential for a debt default is explored, with considerations on what payments might be delayed, such as federal salaries and Social Security, while prioritizing maturing treasuries. The Treasury is assessing which payments can be postponed to manage the cash shortfall.

What is the usual cash balance that the Treasury aims to maintain?

• $150 billion

• $38.8 billion

• $500 billion

• $100 billion

What might the Treasury prioritize if they run out of cash?

• Paying for new infrastructure projects

• Paying maturing treasuries

• Paying Social Security

• Paying federal employee salaries

What is one of the technical challenges mentioned in delaying Social Security payments?

• Public protests

• Political opposition

• Lack of funds

• Computer system limitations

What has the Treasury asked federal agencies to do in preparation for a cash shortfall?

• Cut down on expenses

• Increase their budgets

• Identify payments that can be delayed

• Hire more employees

What is the purpose of the list being compiled by the Treasury?

• To increase tax revenue

• To identify payments that may not be made on schedule

• To plan for new projects

• To reduce the national debt