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Wait a minute..I though Congress was responsible for spending? When did the cons ution change?
projected
Wait a minute..I though Congress was responsible for spending? When did the cons ution change?
Do you have a job in economics?
Apparently not if you think a trillion dollar coin wouldn't have disastrous effects on our currency...
As are the Republicans. All they care about are theatrics.
No, my job is in a more technical field...
What if we put Reagan on it?
The coin would have been an accounting trick designed to allow Obama to ignore the debt ceiling and keep fulfilling obligations Congress had already incurred. Only Congress can raise the debt ceiling, and if Republicans choose not to, voters will know exactly who to blame for the consequences. The Trillion-Dollar Coin scenario, is legal, practical, and despite knee-jerk concerns to the contrary, no more inflationary than simply issuing more debt. Plus, unlike debt, taxpayers don't have to pay interest on the money.
http://krugman.blogs.nytimes.com/201...inst-the-coin/Remember that the coin is supposed to be deposited at the Fed, which is effectively just a semi-autonomous government agency. As the federal government proper drew on its new Fed account, the Fed would probably respond by selling off some of its $3 trillion balance sheet. In effect, the consolidated federal government, including the Fed, would be financing its operations by selling debt instruments, just as always.
But what if the Fed decided not to shrink its outside balance sheet? Even so, under current conditions it would make no difference — because we’re in a liquidity trap, with market interest rates on short-term federal debt near zero. Under these conditions, issuing short-term debt and just “printing money” (actually, crediting banks with additional reserves that they can convert into paper cash if they choose) are completely equivalent in their effect, so even huge increases in the monetary base (reserves plus cash) aren’t inflationary at all.
Well, if I recall, he was the president when our national debt hit the $1 trillion point.What if we put Reagan on it?
both sides are crooks.
Agreed.
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