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View Diary: Wake Up Progressives: The Bad Guys Are Trying To Steal the Trillion Dollar Coin for the 1% (34 comments)

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  •  Won't increase (0+ / 0-)

    the likelihood of using PCS if they trade the capability for repeal of the debt ceiling law will it?

    On austerity propaganda. It is based ONLY on the idea that US is running out of money for this and that. Once that's gone because there's $60 T in the bank, then they have to find other rationales for austerity; and that's when they get laughed off the block!

    •  Longterm shift from debt; austerity laughable? (1+ / 0-)
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      Calgacus

      LGID,

      Unfortunately austerity fetishists has proven invulnerable to being laughed off the block (when it should have been) for recent ridiculous and transparent positions such as:

      (i) pivoting absurdly from supporting W's pro-cyclical deficit spending to objecting to Obama's counter-cyclical deficit spending,

      (ii) ignoring the fact that interest rates set by auctions of federal debt, and other market reactions, have demonstrated for several years that most markets are requesting more rather than less issuance of federal debt, and

      (iii) simultaneously decrying the Austerity Bomb (AKA Fiscal Cliff) and ruling out military spending cuts while still demanding the 'right' kind of austerity (safety net cuts).

      I agree that a quick trade-away of the PCS opportunity, by stifling discussion, could reverse the recent questioning of current monetary structures.  (I still think that it would probably be useful for Obama to offer the trade, because of the certainty that this would strengthen his political position, in comparison with the unlikelihood of reaching agreement with the Republican majority House on the details of the trade).

      More discussion has the benefit of enabling a long-term shift away from debt-financing (rather than merely using it to counteract the threat of debt ceiling abuse), which shift (I tend to think) will eventually need to be based on a new majority view coalescing (at least briefly) among the three branches, rather than merely a unilateral Executive decision to use the present loophole in the commemorative coin law.

      But more discussion also has risks.  If more people pay attention to the present complex, counter-intuitive and banker-coddling monetary structure, they may gravitate towards simple but destructive solutions like Ron/Rand Paul's gold standard obsession.

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