Thursday, January 19, 2017

Mnuchin wants Debt Ceiling to be Raised


Some good news out from today's hearing at least on the surface.

Good question here from a Democrat Senator:

Senator Michael Bennet expressed concern about how Steven Mnuchin would advise Trump if he is confirmed as treasury secretary. He listed the impacts from the 2011 government shutdown: a ratings agency downgraded the nation's deficit for the first time in history, and the stock market fell and did not recover for almost a year. 
“It was completely a self-inflicted wound on the American economy. It hurt retirement savings and dealt a blow to job growth and job creation,” Bennet said during Mnuchin’s confirmation hearing. 
He then asked Mnuchin if he agreed with Trump’s view that the president can renegotiate the country’s debt and avoid a default because the Treasury Department can print more money.



5 comments:

Penguin pop said...

Okay, now these guys are talking. I didn't know Mnuchin the spoiled whiner had it in him. Trump's views on debt from a business perspective have rubbed onto him.

AXEC / E.K-H said...

Comment on ‘Mnuchin wants Debt Ceiling to be Raised’

This tweet is framed by Matt Franko as ‘some good news’ which is nothing but the usual shallow econ opinion blather. The correct policy assessment presupposes the correct economic theory. For details see

Rethinking deficit spending
http://axecorg.blogspot.de/2016/12/rethinking-deficit-spending.html

Keynesianism as ultimate profit machine
http://axecorg.blogspot.de/2015/07/keynesianism-as-ultimate-profit-machine.html

Egmont Kakarot-Handtke

Matt Franko said...

SP 500 firms earn about $1T but only retain about $150B so I don't know what you are talking about with all of your economic gobbledegook....

Under current beliefs, govt policy makers require freedom to adjust leading fiscal flows to whatever rate they deem necessary in response to real events... reguardless of how the non-govt is led to save USDs... to not raise this ceiling under current paradigm would lead directly to chaos....

Get in the real world....

AXEC / E.K-H said...

Matt Franko

You say: “I don’t know what you are talking about with all of your economic gobbledegook ....”

There is no need to emphasize that you do not understand economics. This is pretty obvious from your posts. What you do not seem to realize is that this an economics blog (see header).

You say “Under current beliefs, govt policy makers require freedom to adjust leading fiscal flows ...”.

Do you really think that the incoming administration needs the unqualified opinion or the propaganda support of a brain-dead blogger to sell the already agreed upon deficit spending?

Stop abusing this blog and get out of economics!

Egmont Kakarot-Handtke

Matt Franko said...

I've never been in it... you guys are like bacteria in a Petri dish to me...