What is your prediction on the raising the US #DebtLimit? (Boost for bigger sample)
1) #Biden caves; increase tied to spending cuts
2) #Republicans cave; Clean debt limit Increase.
3) US Government Default
@antares Biden mints the platinum coin and controversy disappears permanently. #MintTheCoin
@AliceMarshall I wonder how former Fed Chair Janet Yellen will feel about dropping a trillion dollars worth of new money into an economy struggling to get inflation under control?
@AliceMarshall In other words the US Treasury would give bond holders 1 trillion dollars to spend in the economy. That is exactly 1 trillion dollars of Quantitative Easing happening just when the fed is trying to tighten the money supply.
This is a common misconception, but no, Congress only appropriates money, giving permission for it to be spent.
The actual spending takes place throughout the year as the Executive Branch pays bills and buys things.
The US Government has plenty of ongoing income to pay its debts. It cannot legally default as it is legally required to service debts first.
@antares this money has already been appropriated and spent. Just a question of borrowing $ to pay debts ALREADY contracted for. The Trillion $ coin would simply fund those debts instead of borrowing.