3 ms·
there are many ways to avoid default. (1) discharge petition - bill from committee to a vote. (2) Fourteenth Amendment Constitution prevents willful default u
by nabla9 4y ago
there are many ways to avoid default.
(1) discharge petition - bill from committee to a vote.
(2) Fourteenth Amendment Constitution prevents willful default until SCOTUS says otherwise. Just keep issuing debt.
(3) High coupon and low principal. 10-year bond with $1 in principal and annual $100 coupon will increase debt ceiling almost 1000X.
(4) high denominations coin minting
- akomtu 4y agoThese are bandaids. Very soon it will become apparent that the US needs to take extraordinary measures to solve its debt problem, and such measures need an extraordinary excuse, more extraordinary than the recent pandemic.
- astrange 4y agoThe market doesn't believe this. If it did, the 10 year Treasury bond rate would be a lot higher, instead the yield curve is negative. https://ycharts.com/indicators/10_year_3_month_treasury_spread https://ycharts.com/indicators/10_year_3_month_treasury_spre...
- andromeduck 4y agoMarket isn't always rational.
- kadoban 4y agoIt's more rational than Congress at least, is only just.
- jacooper 4y agoI mean why ruin the infinite money hose the U.S. has?
- roflyear 4y agoThe cost to service debt has been going down.
- kristjansson 4y ago> (4) high denominations coin minting Far and away the most entertaining path. Who gets to carry the trillion dollar coin from the mint to the treasury? How many heist plots will be foiled? How many movies about said heist plots will be made? Will there be a elaborate motorcade that's ultimately a ruse while the coin is sent by USPS in a plain envelope?
- hotpotamus 4y ago> Who gets to carry the trillion dollar coin from the mint to the treasury? We should pick America's wealthiest and therefore most trustworthy citizen to do the job. Bizarrely enough, Simpsons did it.[0] [0]https://www.youtube.com/watch?v=_KgHy3Pi5Yw https://www.youtube.com/watch?v=_KgHy3Pi5Yw
- fzzzy 4y agoWhat would be the point of stealing a trillion dollar coin? Who could fence it?
- Mountain_Skies 4y agoSounds like something Cobra from GI Joe would do. But in reality, it would have little value to anyone other than the intended bearer.
- deleted 4y ago[deleted]