Faster than expected.
In
a letter to Democratic House Speaker Nancy Pelosi, Mnuchin wrote that
the US might default on its obligations as soon as early September, before Congress returns from its summer recess.
"Based
on updated projections, there is a scenario in which we run of out cash
in early September, before Congress reconvenes," Mnuchin wrote in a
letter.
The federal government has
not been able to borrow money since March, when congressionally-mandated
borrowing limits went back into force. The US Treasury, which is facing
a growing deficit thanks in part to President Donald Trump's 2017 tax cuts, had said it had enough cash to last until the fall.
The deficit widened to $747.1 billion, versus $607 billion last year,
from October through June. Federal spending rose to $3.36 trillion in
that period, while revenue increased to $2.61 trillion -- both records.
Dear Stephen,
ReplyDeleteThank you for your note. I am surprised to read that we're running out of money. You insisted that the tax cuts would pay for themselves. Please go check your homework again, and tell us why you were wrong. Furthermore, feel free to print some extra twenties with Harriet Tubman on them if you need more money.
Love,
Nancy
Nepkarel you win the internet today.
DeleteNepkarel -- what Chris said.
Deleteeasily solved with MMT (modern monetary theory).
ReplyDeleteThis Economic Theory Could Be Used To Pay For The Green New Deal
PLANET MONEY - Episode 866: Modern Monetary Theory
I-)
Nothing that a couple more military parades can't fix.
ReplyDeleteNo sovereign government can run out of its own currency which it issues via its central bank. This is simply not correct. At the risk of being self-serving: http://hipcrimevocab.com/2016/05/14/explain-like-im-five-functional-finance/
ReplyDelete