Tuesday , June 18 2024
Home / EconoSpeak / Peter Pan to the rescue

Peter Pan to the rescue

Summary:
I'm more and more convinced that the simplest way out of the debt-ceiling morass would be to start issuing perpetual bonds or consols (sometimes dubbed "Peter-Pan" bonds, since they never mature or grow up )which simply offer a fixed payment every year, with no face value. This would seem to be immune to court challenges -- unlike the constitutional gambit or the platinum coin.  The Republicans in the House are manifestly crazy, so there's no hope there.One question is how much bigger the term premium would be to borrow longer term in this way.

Topics:
kevin quinn considers the following as important:

This could be interesting, too:

Lars Pålsson Syll writes Take you home

New Economics Foundation writes The politics of “welfare” has distorted public perceptions of social security

Joel Eissenberg writes The myth of lead and the Roman Empire

Michael Hudson writes Kleptocracy is Us

 I'm more and more convinced that the simplest way out of the debt-ceiling morass would be to start issuing perpetual bonds or consols (sometimes dubbed "Peter-Pan" bonds, since they never mature or grow up )which simply offer a fixed payment every year, with no face value. This would seem to be immune to court challenges -- unlike the constitutional gambit or the platinum coin.  The Republicans in the House are manifestly crazy, so there's no hope there.

One question is how much bigger the term premium would be to borrow longer term in this way.

Leave a Reply

Your email address will not be published. Required fields are marked *