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Kevin McCarthy To Get Unseriously Serious About US Debt Standoff
It's tax week in the US, and Kevin McCarthy is apparently poised to detail House Republicans' demands for a deal to avert a catastrophic US debt default.
That should make for a fun juxtaposition. Tax receipts will refine expectations for the so-called "X-date," the threshold beyond which Janet Yellen would have to conjure other, even more "extraordinary" means by which to forestall the paroxysm that'd accompany a voluntary abrogation of the nation's financial obligations.
Apparently, McCarthy
Insanity is doing the same thing over and over again, but expecting different results. Voodoo economics, an idea that just won’t die.
Real compromise would modestly raise taxes on the 95% and raise taxes much more on the top 5%, corporations, index capital gains and then tax the same as regular income, get rid of carried interest etc. It will never happen. Spending increases could be limited to nominal growth+ population growth. It will never happen.
Raising taxes would also be a help for reigning in inflation. It seems Republicans point is to make the poor people poorer.
When the small, not for profit organization on whose finance committee I serve on moved its demand deposit balances into Treasury bills, going from zero % yields to over 4.5%, I told the Board:
I do NOT expect the US Treasury to default. But if it did, I don’t think the impact on Treasury bills or Government money market funds would be materially worse than for demand deposit accounts. That is because banks hold a substantial portion of their assets in Treasury securities, so many would become insolvent. And the FDIC and SIPC balance sheets are predominantly invested in Treasury securities, so their ability to bail out depositors would also be compromised.
Does this sound reasonable to Heisenberg readers?
Kevin McCarthy is an idiot, right up there with Rick Perry.