Debt ceiling dynamics revisited

First, I’d guess the President will sign anything Congress passes, including short term measures. But he might not. And yes, there are options that allow the executive branch to continue to deficit spend if it wanted to, ranging from issuing a multi trillion dollar platinum coin to spending under cover of the 14th amendment. However, […]

Business doesn’t create jobs, consumers do/more debt ceiling comments

Business doesn’t create jobs – consumers do! It is an article of faith by all parties involved that businesses are the job creators, particularly small businesses, and hence their every move is predicated on helping businesses create jobs. Mercy! Can’t they get anything right? Businesses hire to service consumers. A restaurant that’s full doesn’t layoff […]

MMT to President Obama and Members of Congress:

Comments welcome, and feel free to repost: MMT to President Obama and Members of Congress: Deficit Reduction Takes Away Our Savings SO PLEASE DON’T TAKE AWAY OUR SAVINGS! Yes, it’s called the national debt, but US Treasury securities are nothing more than savings accounts at the Federal Reserve Bank. The Federal debt IS the world’s […]

CBO Congressional Report- U.S. Could Face European-Style Debt Crisis

How about the accounts sticking to accounting. Just in case you thought there was any hope: But most ominously, the CBO report warns of a “sudden fiscal crisis” in which investors would lose faith in the U.S. government’s ability to manage its fiscal affairs. In such a fiscal panic, investors might abandon U.S. bonds and […]

former President Clinton on the debt ceiling issue

Just in case you thought former President Clinton ever understood the monetary system: Bill Clinton: Brief Debt Default ‘Might Not Be Calamitous’ “We regret if there has been a misinterpretation of a comment President Clinton made about raising the debt limit. President Clinton did not in any way mean to suggest that a default would […]

GDP Gain Just 1.8%

No actual evidence, but my point remains that if the executive branch can cut spending they don’t like simply by not spending what’s authorized by Congress, they can take the pressure off demands for other spending cuts. Also, again conjecture on my part, the QE and zero rate ‘tax’ (reduced interest income) may be what’s […]

Poll: Public opposed to raising debt ceiling

Poll: Public opposed to raising debt ceiling By Jordan Fabian May 13 — The public remains opposed to raising the nation’s debt ceiling as lawmakers struggle to develop a plan to hike the legal borrowing limit, a new poll released Friday shows. Forty-seven percent say they don’t want their member of Congress to vote to […]

The other Warren (Buffet) gets MMT?

Waiting for the day when he adds: ‘There for federal taxes function to regulate aggregate demand, and not to raise revenue per se.’ Warren Buffett: Failure to Raise Debt Limit Would Be ‘Most Asinine Act’ Ever By Congress By Alex Crippen April 30 (CNBC) — Warren Buffett says if Congress fails to raise the U.S. […]

Joe Firestone post on sidestepping the debt ceiling issue with Coin Seigniorage

Joe Firestone has a new post on Coin Seigniorage, where he gives credit to our own Beowolf’s comment on this website. As far as I’ve been able to determine, it does work operationally. It seems the US Treasury is already legally empowered to simply mint it’s own platinum coin in any denomination it wants and […]

Debt ceiling dynamics

My best guess is there will be little or no fight over the debt ceiling extension. I think the President will agree to pretty much whatever the Republicans want, and get more than enough Democrats to join him. Best I can tell, the entire Congress agrees the deficit is a long term problem that absolutely […]