How should the US handle its debt?

[The Artist formerly known as Sappho]

Hmm - Wile E hasn't come back. Guess he doesn't have any answers.

I'm busy during the week. Also, I'm waiting for Monk to respond to our good will pact.

[Jovial Monk]

The “goodwill pact” where you tell me what to do?

We are waiting for some indication of what you meant about pegging the currency to the unskilled wage. Whatever reading I have done, Billbo and Galbraith junior etc non make that statement. A susbsidiary question I guess is: why not peg to the level of skilled labor, because Jobs Guarantee type schemes include training and meaningful work, not manual ditch digging.

[Rainbow Moonlight]

http://english.aljazeera.net/news/ameri ... 34273.html

Moody's talking about downgrading US's credit rating. Also an article about how Reaganomics is influencing Obama on same site.

[Rainbow Moonlight]

If US does default on its debt, what do you think the consequences would be?

[Jovial Monk]

They won’t default. Greece it seems largely is expected to default—but Greece doesn’t issue its own currency, the US does!

[Rainbow Moonlight]

But if the US congress doesn't approve it they won't be able to print the money?

[Jovial Monk]

Congress can stop them borrowing money but the US govt doesn’t necessarily need to borrow to fund its spending.

Apart from which the Repugs are very nicely panicking, splitting and blaming each other—the Repugs do NOT want to have ownership of the kerfuffle that would arise if the govt had to stop spending so the debt ceiling will be lifted and finally the ridiculous Bush tax cuts will be reversed.

[Rainbow Moonlight]

This article talks about fears of US defaulting.

http://www.abc.net.au/news/2011-07-15/c ... es/2795640

[Jovial Monk]

Even conservatives are beginning to acknowledge their approach could backfire on them politically.

From ele’s link.

Repugs will cave. And split.

[The Artist formerly known as Sappho]

The “goodwill pact” where you tell me what to do?

We are waiting for some indication of what you meant about pegging the currency to the unskilled wage. Whatever reading I have done, Billbo and Galbraith junior etc non make that statement. A susbsidiary question I guess is: why not peg to the level of skilled labor, because Jobs Guarantee type schemes include training and meaningful work, not manual ditch digging.

Oh I see; There is no good will on your part and no interest in this discussion beyond surface catch cries. Well, in answer to your question, the meaning behind the pegging of the currency to unskilled wages can be found in the links you provided in this thread Monk. So why don't you go and read your links about MMT and FFT instead of demanding the world from someone who is merely the messenger.

It won't be too hard to find. I'll give you a clue. It says most directly that pegging the currency to skill labour costs is a direct consequence of MMT. In future, you would do well to read the links that you are providing as discussion points. It would allow you to keep up with the discussion and not look like such a stupid dick.