I will be voting NO on the Rules package with #PayGo. It is terrible economics. The austerians were wrong about the Great Recession and Great Depression. At some point, politicians need to learn from mistakes and read economic history. @paulkrugman @StephanieKelton @RBReichhttps://twitter.com/GunnelsWarren/status/1080318713331617792 …
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3 replies . 8 retweets 31 likes -
Replying to @DeficitOwls @RoKhanna and
If the market has to absorb more of the debt that issued then their is less money to make other investments. Plus if China continues to dump our bonds and by less of them, who will be our biggest buyer of debt?
1 reply . 0 retweets 2 likes -
Replying to @DavidMilliken @RoKhanna and
First, that is absolutely not true. There is no fixed supply of money for investment; banks create money for loans from thin air. Second, China doesn't just sell bonds and hold dollars instead. They sell the dollars to somebody else, then those people buy bonds with the dollars
2 replies . 1 retweet 17 likes -
Replying to @DeficitOwls @RoKhanna and
Who said anything about fixed supply of money? When you issue more govt debt to pay for things there is less money to go into other investments if that debt is going to be serviced.. That doesn’t mean there is less supply money.
1 reply . 0 retweets 1 like -
Replying to @DavidMilliken @RoKhanna and
Oh, I see, I thought you were talking about private investment, but you're talking about gov investment. That's not true either - the gov is the issuer of the currency, it can always make any size payment. Under current rules, nothing about larger debt service automatically
4 replies . 1 retweet 14 likes
reduces other spending or raises taxes. That only happens if Congress votes for it, which, by and large, they do not do. Larger debt service just means the gov is spending more - which in our current economy, is probably a good thing.
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