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View Diary: Very Simple and Permanent Solution to Debt Ceiling (19 comments)

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  •  It serves a technical purpose (1+ / 0-)
    Recommended by:
    Demi Moaned

    that of avoiding the necessity of having Congress approve each issuance of Treasuries.

    •  No! (2+ / 0-)
      Recommended by:
      Demi Moaned, Kevskos

      Yes, the Second Liberty Bond Act of 1917 removed the requirement for each approval of an issuance of treasuries, but that wasn't its real purpose.

      This law established the debt limit to protect the U.S.'s gold reserves and the value of the dollar based on that gold.

      We are off the gold standard.  There is no, none, zero, nada, not'a fuckin' one,  reasons to retain a federal debt limit.  It provides nothing except a soapbox for politicians to rant.


      •  I doesn't matter what that law's "real" purpose (0+ / 0-)

        was in your view, or in anyone else's view. The issuance of public debt must be approved by the governing body of a public entity one way or another for the debt to be valid. If you don't provide blanket authorization up to $x amount, you've got to approve each issue.

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