September 24, 2013
With just over a week left until a potential government shutdown, especially since the House just passed a stopgap funding measure which included an Obamacare defunding measure and which is dead in the Senate, the issue of a government shutdown with no counterproposal on the table is suddenly concerning to investors, as can be seen in the following Bloomberg chart comparing articles mentioning “government shutdown” vs “debt ceiling.”
However, it should be the other way around: while Congress may gamble with the debt ceiling until the 11th hour and 59th minute, as it knows it can always punt to Bernanke and “Mr Chair(wo)man will get to work“, it will hardly jeopardize paying itself a salary for a terrific job well done.
So as we await for the inevitable announcement when the government will promptly resume paying itself, we are far more interested in how long it will take until the debt ceiling fight takes front and center space, and the now annual tradition launched by a handful of monetary misfits, namely the pitching of the idiotic platinum trollin’ trillion dollar coin idea, even though the Fed and Treasury took an unprecedented step and publicly told said misfits to kill the idea before they lose any more of what little credibility they had left by filling the internet with their vacuous stupidity.
Sadly, since US fiscal and monetary policy en masse has become just that, vacuous stupidity, we wish to introduce our own piece of monetary ridiculousness: the trillion dollar bill.
It is not made out of platinum – in fact Charmin’ one-ply will do – but the good news is that the Treasury would merely have to issue a trillion dollar bond to net out the Fed’s balance sheet upon its monetization (and the last thing Congress has problems with is authorizing the spending ludicrous amount of money). After all, under the auspices of the Magic Money Tree theory of money, infinite government debt is simply a manifestation of infinite wealth for the private sector, and as such it is a win-win for everyone.
So without further ado, here is the solution to all of America’s debt problems: the Trillion Dollar Bill.
This article was posted: Tuesday, September 24, 2013 at 5:35 am