tag:blogger.com,1999:blog-2098432983500045934.post6017797932418549347..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: September 15, 2008The Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2098432983500045934.post-91760388354519659172011-07-17T20:23:12.357-04:002011-07-17T20:23:12.357-04:00nute, I think (for example) that the Non-Federal R...nute, I think (for example) that the Non-Federal Relative is a much stronger argument than <a href="http://moslereconomics.com/2011/07/17/mmt-to-president-obama-and-members-of-congress/" rel="nofollow">Mosler's aphorisms</a>.The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-20113295106436855722011-07-17T20:01:27.420-04:002011-07-17T20:01:27.420-04:00Hi, nanute.
To fail to increase the debt ceiling ...Hi, nanute.<br /><br />To fail to increase the debt ceiling is dangerous indeed, as I tried to show with the Lehman and VIX graphics.<br /><br />But the argument coming from politicians and the media is a huge waste of time. The stumbling-block is budget cuts. They bicker over how much to reduce spending to curtail federal debt growth. But (as my link well shows) federal debt growth is not what hinders economic performance.<br /><br />It is excessive private debt that hinders economic performance. Yet excessive private debt is not even part of the discussion. Thus the discussion is a waste of time.<br /><br />The best argument anybody else has, for raising the debt ceiling, is that it is dangerous not to do so. My argument is much stronger, I think: Federal debt is not even the problem, so there is not reason *not* to raise the ceiling.The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-47322616879151661952011-07-17T11:48:33.681-04:002011-07-17T11:48:33.681-04:00should have been and if it isshould have been and if it isnanutenoreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-12314862395366350872011-07-17T11:47:20.683-04:002011-07-17T11:47:20.683-04:00Art,
I don't see how you can say the debt ceil...Art,<br />I don't see how you can say the debt ceiling argument is a dangerous waste of time. If it is dangerous, and it is, it can't be a waste of time. A large portion of public sector debt was recently absorbed by the public sector. Sooner or later, it is going to have to be reconciled. One thing about this debt ceiling debate I haven't seen mentioned: Surely the government is going to have to borrow more in the near term. If the market reacts in a negative fashion as a result of failure to raise the limit, the cost of borrowing will rise significantly. In other words, this could end up costing much more than proponents of not raising the limit realize. Beware of self inflicted consequences.nanutenoreply@blogger.com