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View Diary: How many people even know what our 'National Debt' actually is? (10 comments)

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  •  Good Post Auburn (0+ / 0-)

    Glad to see a second contribution.

    "But is this something that we progressives should advocate for en masse......to shrink the debt by just supporting the repeal of the statute that requires treasury to issue bonds for deficit spending."
    There isn't a statute that requires Treasury to issue bonds for deficit spending. There's a prohibition against the Fed allowing Treasury to run a negative balance in its accounts. But the Treasury can do other things to avoid that apart from issuing debt subject to the limit.

    As I've written many times, Treasury can mint platinum coins to cover deficit spending if it wants to. It can also issue debt instruments called consols. These don't count against the debt limit because the principal on them never has to be repaid, and therefore doesn't count against the debt limit. See my new e-book Fixing the Debt without Breaking America: . . .

    •  You're right Joe, thats a much more accurate (0+ / 0-)

      way to describe it....will change that it any future references.

      "The Earth is my country and Science my religion" Christiaan Huygens

      by Auburn Parks on Tue May 14, 2013 at 02:51:09 PM PDT

      [ Parent ]

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