At 1/13/13 03:22 PM, Feoric wrote:
The debt ceiling doesn't create the debt, it allows debt.
I know, but that's the point of raising it, obviously...
it is to pay for the operational costs of running the government.
Back to the real world example, the $1T injects no money at all into the economy directly. It is essentially collateral for a temporary loan from the Fed to cover monetary needs during the crisis, sort of like a checking account. Once the crisis is over, the loan is repaid and the collateral returned. It's completely neutral, fiscally.
So if I borrow 500$ from you because I don't have money to pay something today, and give it back to you later, that's neutral?
I still have to find an actual 500$.
At 1/13/13 04:32 PM, Camarohusky wrote:
It's the equivalent of a husband giving money to his wife in a community property state. The wife now has money on her books, but in the end, the husband and the wife are the same monetary unit. It's nothing other than a cute shifting of numbers until thecouple wants to go out and spend that money.
But why are you saying "until hey spend the money" when the express purpose of this IS TO SPEND THE MONEY?
Still don't get it.
ALl you guys are saying is "We won't inject it in the economy, we'll just use it to pay for stuff now and then pay it back later".
What? How are you not injecting it in the economy if you're using it to pay salaries and give out social security benefits?
If you raise the debt ceiling later so the new 1T fits into it, then you've still created an extra 1T in debt "from the coin", except you did it in a different way.