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View Diary: The President's Rationalization and Obligation, Part II: Coins, the 14th, and Consols (52 comments)

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  •  But investors believe (3+ / 0-)
    Recommended by:
    RenMin, codairem, psyched

    that the debt ceiling law or congressional shenanigans will suddenly make US debt non-reserve-worthy?  If laws don't matter, then the threat should not be so great.  Presumably one sees this in the lack of panic in the stock market.

    If Obama was gonna pull one of these rabbits out of his hat, he would wait until the catastrophe was undeniable, at which point the markets would sigh with relief and go back to extend and pretend. He would also not want to telegraph a solution that would let the teabaggers off the hook, or strengthen their resolve, or give them even more articles for their fevered impeachment fantasies.

    •  Uhh , yeah (2+ / 0-)
      Recommended by:
      erush1345, dallasdunlap
      that the debt ceiling law or congressional shenanigans will suddenly make US debt non-reserve-worthy?
      Yes, they will. There are plenty of places to put money. If any of this shit happens it basically confirms that teabaggers are in charge of the U.S. economy. Would you give your money to Ted Cruz and Co.?

      Patriot: the person who can holler the loudest without knowing what he is hollering about. Mark Twain

      by Deathtongue on Sat Oct 12, 2013 at 12:52:41 AM PDT

      [ Parent ]

      •  Also yes and No (0+ / 0-)

        None of this would be good. How many times do I or Krugman or someone else have to say, "this is terrible, but not as terrible as doing nothing!"?

        And if the TPers have their way those who own German bonds will be the big winners.

    •  Laws don't matter? (0+ / 0-)

      Special bonds and trillion dollar coins are 100% legal. 14th Amendment is more dubious.

      I totally agree awith your last paragraph, however.

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