The US Treasury has less money than billionaires

The US government has only nearly 39 billion USD left, equal to a quarter of the assets of the world's richest man - LVMH boss Bernard Arnault.

The Treasury ’s cash position is at a dangerous low. As of May 25, the agency had $38.8 billion, according to the latest figures. At the beginning of May, it had more than $200 billion. The minimum the Treasury needs is $30 billion.

According to the Bloomberg Billionaires Index , the world currently has 31 billionaires with assets greater than 38.8 billion USD. The richest person in the world - LVMH boss Bernard Arnault currently owns 193 billion USD. Tesla CEO Elon Musk has 185 billion USD. Amazon founder Jeff Bezos has 144 billion USD.

Other notable names on the list of 31 include Michael Dell, founder of Dell Computer, investment legend Warren Buffett, Facebook co-founder Mark Zuckerberg, French luxury goods billionaire Francois Pinault and Chanel Chairman Alain Wertheimer.

On May 28, US President Joe Biden and House Speaker Kevin McCarthy reached a preliminary agreement to raise the debt ceiling, avoiding the country's default in early June. However, the agreement still needs to be approved by the US Senate and House of Representatives in the next few days.

Earlier, US Treasury Secretary Janet Yellen said that if the debt ceiling is not raised, the agency will run out of cash by June 5 and will have difficulty meeting its payment obligations. She warned that this would be an " economic disaster" for the US.

If the US defaults, people will lose their jobs and their mortgage, car and credit card payments will increase. "A US default would cause an economic and financial disaster. It would also increase borrowing costs. Future investments would become significantly more expensive," she said at an event last month.

In 2011, Congress reached a deal to raise the debt ceiling just two days before the Treasury Department estimated it would run out of money. Financial markets suffered their worst week since 2008. 2011 was also the first and only year the U.S. suffered a credit rating downgrade. In 2013, the debt ceiling battle even led to a government shutdown.

Ha Thu (according to CNN)

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