The 'Les Miserables' state and the trillion-dollar Treasury coin: Stop the presses!
Welcome to Capital Account. Economist Nouriel Roubini, also known as Dr. Doom, has predicted another crisis in the US in his Financial Times op-ed, warning readers. “Given the dysfunctional nature of the American political system, it won’t be long before there is another crisis. Two months, in fact.” This prediction should be no major revelation, since in two months Congress must deal with the debt ceiling and sequestration spending cuts. Capitol Hill's lawmakers may be babies, as depicted on the most recent Bloomberg BusinessWeek cover, but we want to know if we are going to be the ones left crying. We talk to Edward Harrison about the likely fallout from what he dubs the “fiscal cliff-let.”
Also, alternative ideas to address the US’s current debt woes, including minting trillion-dollar platinum coins, are gaining traction. Joseph Gagnon, a Senior Fellow of the Peterson Institute for International Economics, recently told the Washington Post that he likes the idea of the Treasury minting trillion-dollar coins to pay down the national debt, saying, “There’s nothing that’s obviously economically problematic about it.” We talk to Edward Harrison, founder of Credit Writedowns, about the plausibility of exploiting this Treasury loophole.
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