Timmy elsewhere

At Anorak, about the trillion $ coin.

2 thoughts on “Timmy elsewhere”

  1. Erm, point missed I think.

    The $1trn coin is a solution to the specific problem the US faces right now, where a lackwit Congress is seriously considering forcing a default based on levels of sovereign debt that the US has no problem servicing, and that aren’t even a particularly high share of GDP by historical standards.

    It’s not a way of saying “this will end the US’s debt problem”, it’s a way of saying “this will end the utterly ridiculous and artificial, but potentially very serious, debt ceiling problem”.

  2. At some point in the future the QE company (can’t remember its name) will be wrapped up and the government debt forgiven. (OK, maybe George gives Mervyn a cheque which he then hands to the treasury secretary who tears it up.)

    So buying bonds is exactly the same as printing money and giving to the government.

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