debt ceiling

The coin seignorage idea has really caught on - not just in the blogosphere, but in the mainstream media as well. You have Brad DeLong, Matt Yglesias, Tyler Cowen and a lot of others talking up ‘The Coin’. In the mainstream media, the…

The Chinese will be pleased. Holders of other government liabilities, not so much. If it comes to this, expect it to be negative for economic growth.

A stalemate could mean selective default. However, my sense is that the bonds themselves will be paid first. Other government expenditures will not get paid and that means a hardship for those who expect the money, whether companies doing…

Here’s a good morning video for you. Raise the debt ceiling already.

If you recall, it was George W. Bush’s father, GWH Bush, who, when campaigning against Reagan, called supply side economics’ claims that tax cuts pay for themselves Voodoo Economics. And Bush was proved right when deficits spiralled out of…

Separately, both Nouriel Roubini and Stephen Roach, two leading American economists with differing views on the Chinese domestic economy have pointed out the concern China has with the dysfunctional US political system. Increasingly, the…

CMA sources credit prices directly from the world’s largest and most active credit investors. Data from CMA show that the US leads the list amongst sovereign credit default swap wideners today.

Treasuries are more expensive to use as collateral for the borrowing that banks do in the ordinary course of business.

My take: The issue is real and if the debt ceiling is not increased, the US will slip into a double dip recession in which unemployment will rise higher and stocks will sink lower than in 2009. Voters now see this as a predominately…

No, but stocks and bonds are down. Global equity markets are down and safe havens like gold and the Swiss Franc are up. Stan Collender thinks the likelihood of a deal is less than many believe.