Thursday, July 22, 2021

Debt Ceiling

 

GOPer Flimsy Graham putting Social Security and Medicare on the table now … that ought to help loosen things up…  this going to be wild…





4 comments:

lastgreek said...

What reforms does he have in mind?

Mike Norman said...

"Reforms" is code for cuts.

Unknown said...

Indeed all the Republican Party politicians and their supporters running wild on the idea government has a "thin air" liability on its balance sheet! Addressing climate change? Forget it the planet's going to fry! Oh but hold on remember Ben Bernanke? Here he is to the rescue if only you could exterminate Republican Party politicians and their supporters (perhaps Covid is already doing that for us!):-

"... imagine that the U.S. economy is operating well below potential and with below-target inflation, and monetary policy alone appears inadequate to address the problem. [5] Assume that, in response, Congress approves a $100 billion one-time fiscal program, which consists of a $50 billion increase in public works spending and a $50 billion one-time tax rebate. In the first instance, this program raises the federal budget deficit by $100 billion. However, unlike standard fiscal programs, the increase in the deficit is not paid for by issuance of new government debt to the public. Instead, the Fed credits the Treasury with $100 billion in the Treasury’s “checking account” at the central bank, and those funds are used to pay for the new spending and the tax rebate. Alternatively and equivalently, the Treasury could issue $100 billion in debt, which the Fed agrees to purchase and hold indefinitely, rebating any interest received to the Treasury. In either case, the Fed must pledge that it will not reverse the effects of the MMFP on the money supply (but see below)."

https://www.brookings.edu/blog/ben-bernanke/2016/04/11/what-tools-does-the-fed-have-left-part-3-helicopter-money/

Peter Pan said...

Add Bernie Sanders to the extermination list.