Tag Archives: debt limit

Grandma Bernanke’s Flour Canister

I hate comparisons between household budgets and Government budgets. Things which work in the micro-economic environment fail in the macro-economic environment, often because of the Fallacy of Composition. But this scenario is so cute I’ll make an exception. – Grandpa … Continue reading

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Fareed Talks Sense, as usual

I always love what Fareed Zakaria has to say, especially when he agrees with me. In this post he untangles the claims and counterclaims regarding the Debt Ceiling with the fundamental insight that when a legislature votes to authorize spending … Continue reading

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Fear Monger or Realist – You Decide

Read my response to jonolan’s Comment and see what you think.

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Default. No Facts in Common – No Basis for Agreement

Even before we collided headlong into one another as I was entering, and he was leaving Chris Cella’s, I always liked Senator Daniel Patrick Moynihan. He was a man of boundless energy, and unimpeachable intellect. He studied issues in-depth. His adversaries … Continue reading

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Eric Cantor Lost his Seat in the last round of Musical Chairs

Yesterdays meeting at the White House was reported on this way by the BBC: Mr Obama was joined at the negotiating table on Saturday by his Vice-President Joe Biden, Republican House Speaker John Boehner, Democratic House Minority leader Nancy Pelosi, … Continue reading

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WIT Certificates – A Financial Workaround for the Debt Limit

The Debt Ceiling law, 31 U.S.C. 3101(b), limits the face amount of obligations whose principal and interest are guaranteed by the United States Government. which means to say that the Treasury can sell certificates in excess of the limit, and … Continue reading

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Why only Congress is to Blame if we Default.

All the money which the Government spends is appropriated by Congress. All the Taxes which the Government collects is levied by Congress. If Congress does not Levy enough taxes to cover appropriations, the President is required to borrow the difference, … Continue reading

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