A failure to raise the debt ceiling is not a commitment to renege on obligations. It is simply a decision to stop borrowing.
The trillion dollar coin idea is a marvel of political imagination and public ignorance.
Being reserve currency resides as much in trust as in any other factor, and taking this step, of minting coins to pay debt and avoiding the political process, will just further encourage other countries to move away from the dollar and dollar based assets.
We are now – and will remain – a debt-fueled economy for as long as the rest of the world permits this to continue.
Everywhere you look, countries have too much debt and are struggling with it.
We believe the downgrade of US Treasury obligations is legitimate and, in one very relevant way, insufficient.
The Wall Street bailout melodrama should be viewed as a dress rehearsal for today’s debt-ceiling non-crisis.
Conversación con Michael Hudson sobre la crisis de deuda de EE.UU.
Republicans want to raise the debt ceiling just as much as Democrats, they just want to gain political advantage in the process.