Dem Rep. Yarmuth in June: ‘We Can Pay Off Our National Debt Tomorrow with the Key Stroke’

[Excerpt UNKNOWN Back to ░░░░░░░░ comments earlier about sort ░░░░░░░░ deficit spending it kind ░░░░░░░░ really does matter and ░░░░░░░░ mentioned that the United ░░░░░░░░ is one of ten ░░░░░░░░ countries that sort of ░░░░░░░░ away with this When ░░░░░░░░ we achieve that status ░░░░░░░░ I m assuming that ░░░░░░░░ not way back When ░░░░░░░░ we achieve that status ░░░░░░░░ it s still kind ░░░░░░░░ hard to believe that ░░░░░░░░ a thing exists And ░░░░░░░░ would ask the second ░░░░░░░░ of the question what ░░░░░░░░ the theory is wrong ░░░░░░░░ like the consequence of ░░░░░░░░ YARMUTH That s the ░░░░░░░░ question that s the ░░░░░░░░ and thank you for ░░░░░░░░ Well first of all ░░░░░░░░ happened when we went ░░░░░░░░ gold standard So when ░░░░░░░░ currency was no longer ░░░░░░░░ to the price of ░░░░░░░░ then we became UNKNOWN ░░░░░░░░ question YARMITH Yes we ░░░░░░░░ have done it We ░░░░░░░░ have done it at ░░░░░░░░ time So that s ░░░░░░░░ first question I asked ░░░░░░░░ the first time I ░░░░░░░░ about MNT I said ░░░░░░░░ sounds like a great ░░░░░░░░ that is very appealing ░░░░░░░░ it doesn t work ░░░░░░░░ so the question of ░░░░░░░░ it doesn t work ░░░░░░░░ have exhaustively discussed with ░░░░░░░░ Kelton and others and ░░░░░░░░ that point two things ░░░░░░░░ to happen Either essentially ░░░░░░░░ would have to have ░░░░░░░░ forced recession So either ░░░░░░░░ Fed would raise interest ░░░░░░░░ to discourage borrowing and ░░░░░░░░ activity or Congress would ░░░░░░░░ taxes to a very ░░░░░░░░ level pull money out ░░░░░░░░ the economy That s ░░░░░░░░ you would do if ░░░░░░░░ got to the point ░░░░░░░░ you had untamed inflation ░░░░░░░░ are the two exercises ░░░░░░░░ inaudible question YARMUTH Yes ░░░░░░░░ s the only downside ░░░░░░░░ I d ask this ░░░░░░░░ So does the accumulated ░░░░░░░░ have anything to do ░░░░░░░░ the propensity of a ░░░░░░░░ dollar being spent to ░░░░░░░░ inflation In other words ░░░░░░░░ your debt is 10 ░░░░░░░░ or 20 trillion dollars ░░░░░░░░ 50 trillion does that ░░░░░░░░ any difference in how ░░░░░░░░ the next dollar spent ░░░░░░░░ to cause inflation And ░░░░░░░░ answer is no We ░░░░░░░░ spent that UNKNOWN But ░░░░░░░░ other downside though is ░░░░░░░░ the next inaudible YARMUTH ░░░░░░░░ enough CBO the Congressional ░░░░░░░░ Office makes those inaudible ░░░░░░░░ forecasts so basically carrying ░░░░░░░░ of The National debt ░░░░░░░░ not going to increase ░░░░░░░░ over the next 10 ░░░░░░░░ because the interest rates ░░░░░░░░ so low Secondly we ░░░░░░░░ to pay interest on ░░░░░░░░ money that we borrow ░░░░░░░░ don t have to ░░░░░░░░ that In other words ░░░░░░░░ owns a trillion dollars ░░░░░░░░ of our debt We ░░░░░░░░ say to China tomorrow ░░░░░░░░ China you have a ░░░░░░░░ dollars here in an ░░░░░░░░ for you Do with ░░░░░░░░ what you want but ░░░░░░░░ re no longer going ░░░░░░░░ get one percent of ░░░░░░░░ on those treasures We ░░░░░░░░ the ability to do ░░░░░░░░ at any time so ░░░░░░░░ can pay off our ░░░░░░░░ debt tomorrow with a ░░░░░░░░ stroke because people would ░░░░░░░░ choose to trust the ░░░░░░░░ States government with their ░░░░░░░░ for safety reasons. “