Why the U.S. is closing in on both a debt default and a government shutdown.
Topics covered include:How a government shutdown differs from a debt ceiling crisisWhy hasn't Congress passed legislation to fund the government and raise the debt limitHow refusing to increase the debt ceiling could impact Social SecurityHow big is the national debt and who owns itWhy we never know how much federal debt is too much: Japan vs the U.S.How federal debt is used and how it has led to financial innovationWhy countries default on their debtWhat are some of the challenges with central banks pegging interest rates and monetizing the debtWhat could cause the U.S. dollar to crash and inflation to soarThanks to Alto CryptoIRA and LinkedIn for sponsoring the episode.
For more information on this episode click here.
America’s debt ceiling is a disaster, though fiscal rules can help—The Economist
Treasury Bulletin, September 2021—Bureau of the Fiscal Service
Major Foreign Holding of Treasury Securities—Department of the Treasury/Federal Reserve Board
Fed official warns of ‘extreme’ market reaction unless debt ceiling raised by Lauren Fedor, Colby Smith and James Politi - The Financial Times
Republicans Are Playing a Dangerous Game With Debt by Michael R. Strain—The New York Times
Explainer: What happens when the U.S. federal government shuts down? by Jason Lange—Reuters
Janet Yellen Says Treasury Could Exhaust Cash Reserves by Oct. 18 if Debt Limit Isn’t Raised by Nick Timiraos and Kate Davidson—The Wall Street Journal
Janet Yellen: Congress, Raise the Debt Limit by Janet Yellen—The Wall Street Journal
Devin Carroll on YouTube
In Defense of Public Debt by Barry Eichengreen, Asmaa El-Ganainy, Rui Esteves, and Kris James Mitchener
Different Types of Central Bank Insolvency and the Central Role of Seignorage by R. Reis
How do central banks control inflation? A guide for the perplexed by Laura Castillo-Martinez and Ricardo Reis—London School of Economics and Political Science
Can the Central Bank Alleviate Fiscal Burdens? by Ricardo Reis—London School of Economics and Political Science
295: Federal Reserve Insolvency and Monetizing the National Debt
338: The National Debt, Inflation, and the U.S. Dollar—What Could Go Wrong?
Podden och tillhörande omslagsbild på den här sidan tillhör J. David Stein . Innehållet i podden är skapat av J. David Stein och inte av, eller tillsammans med, Poddtoppen.