Debt-Ceiling Cliff Dancing
Notes on the Week Ahead
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The Three Perils of Debt Ceiling Resolution in the United States
Some have argued that the federal government could avoid immediate default by prioritizing debt payments over all other bills. This would of course be a mere stopgap, since it would only avoid default in the long run if the budgets were actually balanced. Second, last minute prioritization is not practical. Third, the so-called 14th Amendment option is forced with peril. Fourth, our government's treasury department could mint a trillion-dollar coin and deposit at the Federal Reserve to continue paying its bills.
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