With notable exceptions, coverage of the debt ceiling debacle has been incomplete (at best) and dishonest (at worst). 1/

2023/05/27 4:49

https://twitter.com/stephaniekelton/status/1662184215620796416?s=61

With notable exceptions, coverage of the debt ceiling debacle has been incomplete (at best) and dishonest (at worst). 1/

Let's start with the basics. The executive branch is bound--under the Constitution--to spend when Congress says spend. The law requires the president/Treasury to honor its spending obligations. The president and Treasury Secretary have taken an oath to uphold the Constitution. 2/

The debt ceiling statute applies to a *specific set of instruments*. Let's call them "brown pebbles." 3/

If Congress chooses not to raise the debt limit, it is NOT choosing to default. It is telling Treasury "don't issue any more brown pebbles to facilitate the spending we have ordered." 4/

As @rohangrey explains in this interview, there are at least three different instruments that could be issued to facilitate the spending *without violating the debt ceiling limit.* 5/

Ep. 2 Pt. 2 - Debt Ceiling & Mint The Coin with Rohan Grey

https://youtu.be/iQWWeoEMTnc

One option is for the Treasury to issue perpetual bonds (think of consols), which have no face value (hence don't count against the debt ceiling) but pay a bit of interest in perpetuity. Let's call these instruments "green pebbles." 6/

Alternatively, Treasury could issue premium bonds, which would have a very low face value and a high rate of interest. Let's call them "red pebbles." 7/

The Treasury Secretary could also mint some silver pebbles in the form of a trillion-dollar platinum coin, which would allow it to meet all of its spending obligations *without any additional 'borrowing'* at all! 8/

https://twitter.com/stephaniekelton/status/1662184228862214175?s=61

Now, it may be too late to late--technically/logistically--to ramp up auctions for green and red pebbles, given the X-date. You can listen to that discussion here. 9/

https://omny.fm/shows/odd-lots/on-the-debt-ceiling-the-white-house-is-doing-what

But silver pebbles, according to former Mint Director @PhilipNDiehl, could be manufactured in a few short days. 10/

#MintTheCoin! - Interview with Former Mint Director Philip N. Diehl

https://youtu.be/vKyF67lELGM

So the counter to republicans saying, "No more brown pebbles!" is for the executive branch to say, "OK. We will choose a different color." 11/

Unfortunately, the WH/Treasury appear to have unilaterally disarmed by swearing off any of these alternatives, including, apparently, the 14th Amendment. 12/

https://www.politico.com/news/2023/05/26/biden-14th-amendment-debt-ceiling-00098977

This is frustrating not just to the progressive left but to people like @BruceBartlett and @paulkrugman who wrote, "I hope someone inside the Treasury is quietly preparing to do whatever it takes. If not, God help us all." 13/

krugman

https://www.nytimes.com/2023/05/25/opinion/debt-us-biden.html

ステファニー・ケルトン

@ステファニーケルトン

顕著な例外を除けば、債務上限問題に関する報道は（よく言っても）不完全で、（悪くても）不誠実だ。1/

2023/05/27 4:49

https://twitter.com/stephaniekelton/status/1662184215620796416?s=61

顕著な例外を除けば、債務上限問題に関する報道は（よく言っても）不完全で、（悪くても）不誠実だ。1/

基本から始めましょう。行政府は憲法に基づき、議会が支出を指示した場合には支出する義務がある。法律は大統領/財務省に対し支出義務を履行することを義務付けている。大統領と財務長官は憲法を守ることを宣誓した。2/

債務上限法は *特定の商品セット* に適用されます。それらを「茶色の小石」と呼びましょう。3/

議会が債務上限を引き上げないことを選択した場合、それは債務不履行を選択したわけではありません。政府は財務省に対し、「我々が命じた支出を促進するためにこれ以上茶色い小石を発行しないでください」と伝えている。4/

@rohangrey がこのインタビューで説明しているように、*債務上限に違反することなく支出を促進するために発行できる可能性のある手段は少なくとも 3 つあります。5/