An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
I enjoy your great blog! With respect to the US Treasury defaulting on authorized payments such as interest on the debt or Social Security or other fiscal expenditures, the Treasury should keep on rolling out those (mostly electronic) payment vouchers as they usually do. Let's see if the Fed stops paying. If they do, send out the arrest warrants! The Treasury can always issue a legal notification to the Fed acknowledging our overdrafts and give assurance that that the payments are lawful contract fulfillments and that it would be illegal for us to unilaterally stop payment. Let's see if the Supreme Court would dare force the government to default.
Of course this money does not belong to the Fed or the Treasury as principals, but rather as the legal agents of the citizens of the USA!
1 comment:
Mike,
I enjoy your great blog! With respect to the US Treasury defaulting on authorized payments such as interest on the debt or Social Security or other fiscal expenditures, the Treasury should keep on rolling out those (mostly electronic) payment vouchers as they usually do. Let's see if the Fed stops paying. If they do, send out the arrest warrants! The Treasury can always issue a legal notification to the Fed acknowledging our overdrafts and give assurance that that the payments are lawful contract fulfillments and that it would be illegal for us to unilaterally stop payment. Let's see if the Supreme Court would dare force the government to default.
Of course this money does not belong to the Fed or the Treasury as principals, but rather as the legal agents of the citizens of the USA!
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