Tidbit:
- Congress has 12 working days to raise the nation's debt ceiling when it returns in September.
- Failure ot raise the debt limit would cause severe economic and political consequences.
- Negotiations have been sluggish, with one Democratic aide saying there are currently "no talks" ongoing.
"With President Trump, debt ceiling options like the Platinum Coin and the 14th Amendment — while unlikely — are now at least a possibility," said Chris Kruger, an analyst at Cowen Washington Research Group wrote ina recent note to clients.Business Insider
Congress has 12 working days to avoid an economic disaster — and there's good reason to panic
Bob Bryan
10 comments:
They better put thru that rule change on the Leverage Ratio if they do the coin or I believe non/risk assets are going to start piling up on the bank balance sheets again at about 50-60 $B per month.... maybe causing GFC 2.... with no ability to do a "reserve drain" aka Treasury Securities issuance...
Then maybe Congress would do some fiscal.
But aren't you the guys that insists that the government will never default?
"If the debt ceiling is not raised, the federal government would lose the ability to pay bills it already owes in the form of US Treasury bills"
It's irrational. But irrational people are in charge in the US now.
Andre, the government can't be forced to default. It can, however, choose to do so voluntarily, although I suspect it would ultimately violate the constitution.
If US Sovereign Debt was sold for NEGATIVE yields then who could complain about issuing more since the new debt would be a REVENUE generator for the US Government?
And Franko is right, "the coin" would be useless for sterilizing reserves but negative yielding sovereign debt still could.
"It can, however, choose to do so voluntarily"
Yes, but that fact is usually forgotten in 80% of MMT texts about the subject...
André some people would rather see the world burn to prove a point, and that point is that "governments run out of money!".
Kind of stupid, but stupid rules the world so...
I, those people are all libertarians..
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