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View Diary: Ezra Is Terrified Because of His Framing (35 comments)

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  •  I actually think you're wrong (1+ / 0-)
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    Kimbeaux

    The problem advocates of the platinum coin or the use of the 14th amendment have always missed is that the debt ceiling is not only about literally paying our debts, but raising the ceiling is also a signal to world markets that we are a stable democracy and deserve our status as the safest place to keep your money.

    If Obama unilaterally tried to pay of our debts he would solve the financial constraint imposed by the debt ceiling, but, with the expected legal fights, including impeachment, that would ensue, his actions would probably do damage to the US reputation as a stable place to keep your money and thus result in an increase in rates, downgrades etc... The best solution is a clean raising of the debt ceiling with no legality in question.

    •  Why would the markets (0+ / 0-)

      become concerned about the Treasury rapidly paying back most of the debt as it falls due and not issuing new debt?

      Why would they conclude from such a payback that the US was not a stable place to put their money?

      And finally, why do we need their money since the $60 T coin will prove the truth, namely that the Treasury can produce all the money we will ever need, regardless of whether foreign nations want to place their money here?

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