5 ms·

Up to congress to balance budgets. Markets will force their hand if they have to (see England).

by arberx 4y ago

theandrewbailey 4y ago
Maybe a balanced budget amendment would set things on a sustainable path, but no neo-conservative, neo-liberal, or MAGA supporter would let it pass. If the fall of the Roman Republic is anything to go by, we're at the point where senators are raiding the treasury.
- neilwilson 4y ago
  "Maybe a balanced budget amendment would set things on a sustainable path" If for sustainable you mean a complete collapse of the economy as excess savings and excessive taxation drain the flow of money.
- ausbah 4y ago
  balanced budget amendments cripple a government's ability to respond to economic crisis
  - theandrewbailey 4y ago
    If Keynesian economics are anything to go by, looking at US budget deficits, there's been a non-stop economic crisis for the past 20 years. https://www.statista.com/statistics/200410/surplus-or-deficit-of-the-us-governments-budget-since-2000/ https://www.statista.com/statistics/200410/surplus-or-defici...
neilwilson 4y ago
"Markets will force their hand if they have to (see England)." That didn't happen in England (The UK actually - England is California in the United Kingdom). Markets are servants not master. And you cannot 'balance budgets' if you allow savings in the denomination. The accounting won't allow it. For somebody to save somebody else has to borrow. That's why you end up 'in credit' at the bank. The bank is borrowing from you. Presumably you don't want your bank to balance its budget and confiscate your 'in credit' balances.
- arberx 4y ago
  "That didn't happen in England." That is precisely what happened. No market buyers for GILTS because tax cut play jeopardized future debt obligations by the government.
  - neilwilson 4y ago
    There's always market buyers for Gilts. GEMMS are required to make two way prices in all market conditions as a conditions of their access to the Debt Management Office.

Up to congress to balance budgets. Markets will force their hand if they have to (see England).

by arberx 4y ago

Up to congress to balance budgets. Markets will force their hand if they have to (see England).

Maybe a balanced budget amendment would set things on a sustainable path, but no neo-conservative, neo-liberal, or MAGA supporter would let it pass. If the fall of the Roman Republic is anything to go by, we're at the point where senators are raiding the treasury.

neilwilson 4y ago
"Maybe a balanced budget amendment would set things on a sustainable path" If for sustainable you mean a complete collapse of the economy as excess savings and excessive taxation drain the flow of money.
ausbah 4y ago
balanced budget amendments cripple a government's ability to respond to economic crisis
- theandrewbailey 4y ago
  If Keynesian economics are anything to go by, looking at US budget deficits, there's been a non-stop economic crisis for the past 20 years. https://www.statista.com/statistics/200410/surplus-or-deficit-of-the-us-governments-budget-since-2000/ https://www.statista.com/statistics/200410/surplus-or-defici...

neilwilson 4y ago

"Markets will force their hand if they have to (see England)." That didn't happen in England (The UK actually - England is California in the United Kingdom). Markets are servants not master. And you cannot 'balance budgets' if you allow savings in the denomination. The accounting won't allow it. For somebody to save somebody else has to borrow. That's why you end up 'in credit' at the bank. The bank is borrowing from you. Presumably you don't want your bank to balance its budget and confiscate your 'in credit' balances.

arberx 4y ago
"That didn't happen in England." That is precisely what happened. No market buyers for GILTS because tax cut play jeopardized future debt obligations by the government.
- neilwilson 4y ago
  There's always market buyers for Gilts. GEMMS are required to make two way prices in all market conditions as a conditions of their access to the Debt Management Office.