Brian Romanchuk — The U.S. Debt Limit (Preliminary Primer)

Summary:
The debt limit in the United States is currently not an object of worry, but it represents one possible avenue to default. From the perspective of a non-American, it is rather difficult to understand how such a strange custom could arise. This article outlines very briefly the history of the debt limit, and then moves to discuss the risks associated with it. This issue underlines the argument that default risk in floating currency sovereigns is political risk, not financial.... Bond Economics The U.S. Debt Limit (Preliminary Primer)Brian Romanchuk

Topics:
Mike Norman considers the following as important: currency sovereignty, debt phobia, deficit hysteria, floating exchange rate, political restraints, sovereign default, US debt limit, US Politics

This could be interesting, too:

Mike Norman writes We Are All MMTers Now — John Furlan

Mike Norman writes Biden’s Foreign Policy Teams Hints at War with China, Conflict with Russia — Alan Macleod

Mike Norman writes Trump Budget Seeks Deep Non-Defense Appropriations Cuts, in Break With Bipartisan Agreement — David Reich & Jennifer Beltrán

Mike Norman writes Pete Buttigieg and the Myth of Deficit Responsibility — Luke Darby