Will the U.S. Default? Debt Ceilings, Government Shutdowns, and the National Debt
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 crisis
- Why hasn't Congress passed legislation to fund the government and raise the debt limit
- How refusing to increase the debt ceiling could impact Social Security
- How big is the national debt and who owns it
- Why 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 innovation
- Why countries default on their debt
- What are some of the challenges with central banks pegging interest rates and monetizing the debt
- What could cause the U.S. dollar to crash and inflation to soar
Thanks to Alto CryptoIRA and LinkedIn for sponsoring the episode.
Show Notes
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
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: Congress, Raise the Debt Limit by Janet Yellen—The Wall Street Journal
Different Types of Central Bank Insolvency and the Central Role of Seignorage by R. Reis
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