Today, The Fiscal Times published my opinion piece on U.S. Treasury debt. Key ideas include:
– The debt situation is worse than commonly realized – when evaluated back to 1946.
– Fortunately, a few debt management policy tweaks can yield great benefit with limited costs.
– It’s our debt. It’s our problem. Let’s fix it.
To view the full article:
Yesterday staff on the House Financial Services Committee released a report critical of Treasury activities during the debt ceiling crisis. Treasury told Congress that the department was unable to prioritize debt payments to keep the government from violating its borrowing limit.
Of course, Treasury had the ability to prioritize payments. Emerging economies have done this for years!
The 322-page report includes documents received under subpoena highlighting table top exercises to precisely prioritize debt payments – http://financialservices.house.gov/uploadedfiles/debt_ceiling_report_final_01292015.pdf.
I am quoted in Bloomberg’s “Inside the Fed’s `D-Day’ War Games for Breach of U.S. Debt Limit” – http://www.bloomberg.com/news/articles/2016-02-01/inside-the-fed-s-d-day-war-games-for-breach-of-u-s-debt-limit.