Discussion
The Treasury just declared the U.S. insolvent. The media missed it
TacticalCoder: Let me guess: it's all, entirely, Trump's fault?
croes: Before Trump there was the belief in reasonable measures.Now it’s only chaos and uncertainty.Markets hate uncertainty.
mothballed: The US can't go insolvent. The fed can could buy the entire debt out tomorrow out of newly created money. Sovereign debt in a country with such central bank is little more than future tax or inflation, but solvency is guaranteed.
croes: But bonds and the Dollar could become nearly worthless
huijzer: Not a nice timing by the treasury to post this at the same time that many companies fire employees, war is going on, and fuel is running out. Everything is piling up it seems
JoeAltmaier: Well, it went galloping onward during that tenure. If not the administration's responsibility, then who's?
exabrial: mostly Obama, Trump version 1, Biden, and Trump v2.
moi2388: Literal decades of mismanagement.
jmclnx: The bill that is missing, tax the very rich as the US did in 1960
peteforde: The good news is that a currency issuer cannot become insolvent. This is literally just semantic libertarian scare propaganda. I strongly urge you to watch Stephanie Kelton's interview on The Daily Show a few years back to calm your mind a bit.https://www.youtube.com/watch?v=1JpZZcD8C4MMeanwhile, let's step back a bit... if we pretend that the US is insolvent - a repo man is going to come take it away with a big truck - do you really think that the US treasury is structured in a way that allows them to hold back something that significant because the national mood is anxious and they don't want to make people feel extra sad on a Monday? Seriously: wth.
scotty79: "There's infinite amount of money in the federal reserve."
alecco: > These two bills represent the most credible path forward — if Congress has the will to act.I’m not American, and yet I can tell this is extremely unlikely to happen. I’ve lost track of all the Cassandras raising the alarm who were shot down or even laughed at. But there is still a bit more road left for the can to be kicked one more time.
mullingitover: Here's your reminder that this is of course a bunch of alarmist nonsense, because as an issuer of currency the United States is incapable of becoming "insolvent."The authors are from an libertarian extremist think tank that pushes for a balanced budget amendment. If these people got their way, we would immediately solve the problem of people arguing about this on the internet since none of us would be able to afford to own a computer.
scrubs: Oh c'mon! We know that. Good Lord, if a country's debts were held elsewhere, it'd be the Trump administration trying to repo someone first for Nato money or other some fool reason.Meanwhile,there are in fact actual, bonafide, tangible problems to financial stupidity you're quip forgot to address.
mellosouls: NB. This article could have been written under any recent administration (and no doubt was published in different forms).I don't mean it's politically motivated or that the current admin shouldn't be criticized; the authors have legitimate economic views and concerns that follow - but the title is clickbait and shouldn't be used to infer something new is happening.
cyberge99: Exactly. It’s commentary, not even an article. The big number is GDP and the is and will continue to be the most significant by a large margin.
neilcj: Shocking display of economic illiteracy or warmed up Goldwater propaganda?
