The singular brilliance of the debt ceiling is that it keeps reminding everyone that there is a growing national debt that never seems to shrink. That is a tremendous service to American citizens who live in the dark regarding the borrowing machinations of their political overlords.
The state exploits the uncertainty in the population about the true reasons for the growing gap in income and asset distribution.
“If you say the goal of the Fed was to prevent calamities, then you have to say that it has been a failure.”
Somewhere around 1980, debt began climbing far faster than GDP. It is simply not possible to grow your debts faster than your income forever.
The transfer of bad debts to the balance sheets of governments and central banks cannot undo the destruction of wealth.
How does one know when a bubble is forming? Could it be as simple as applying a psychologist’s diagnosis?
Ms. Yellen wears the intellectual blinders of the mainstream macroeconomist. We can look forward to the Fed blindly fueling asset bubbles.
Interviewed by Scott Horton, Mark Thornton discusses why we need to lower the debt ceiling; the dangers of a depreciating dollar; why the NSA’s spy
The dollar is very susceptible to losing its vaunted reserve currency position.
A default on US government debt is no more or less radical than a default on any other kind of debt.
