We analyze the worrisome national debt situation in the U.S., UK, and Japan and consider what will determine the likelihood of default Topics covered include: Show Notes Debt to the Penny—U.S. Treasury Fiscal Data Federal Debt and the Debt Limit in 2022—Congressional Research Service Can the Central Bank Alleviate Fiscal Burdens? by Ricardo Reis—London School of Economics and Political Science UK government debt and deficit: June 2022—Office for National … [Read more...]
403: The Pandemic Might Be “Over,” but Not Its Repercussions
How risk perceptions and actions have changed over several years of the pandemic. How the pandemic's impacts continue to affect politics, the economy, financial markets, how we invest, and our personal lives. Topics covered include: Is the pandemic really over? Based on what criteriaWhat percentage of people continue to isolate at homeHow behaviors such as eating out and visiting friends have changed throughout the pandemic.How work has changed with the pandemicHas pandemic stimulus … [Read more...]
360: Will the U.S. Default? Debt Ceilings, Government Shutdowns, and the National Debt
Why the U.S. is closing in on both a debt default and a government shutdown. Topics covered include: Show Notes America’s debt ceiling is a disaster, though fiscal rules can help—The Economist Treasury Bulletin, September 2021—Bureau of the Fiscal Service Major Foreign Holding of Treasury Securities—Department of the Treasury/Federal Reserve Board Fed official warns of ‘extreme’ market reaction unless debt ceiling raised by Lauren Fedor, Colby Smith and James … [Read more...]
338: The National Debt, Inflation, and the U.S. Dollar—What Could Go Wrong?
With a ballooning U.S. federal budget deficit, a growing national debt, and double digit increases in the money supply, is it time to bet against the dollar? Topics covered include: Show Notes Where Did Americans Move in 2020? by Janelle Cammenga—Tax Foundation Velocity of M2 Money Stock (M2V) Chart—Federal Reserve Bank of St. Louis Federal Surplus or Deficit [-] as Percent of Gross Domestic Product (FYFSGDA188S) Chart—Federal Reserve Bank of St. Louis How the CPI … [Read more...]
295: Federal Reserve Insolvency and Monetizing the National Debt
How central banks can become insolvent and why it can lead to hyperinflation. What are four ways the Federal Reserve and the U.S. Treasury could monetize the national debt. Topics covered include: Show Notes Credit and Liquidity Programs and the Balance Sheet: Federal Reserve liabilities—Board of Governors of the Federal Reserve System As of and for the Years Ended December 31, 2019 and 2018 and Independent Auditors’ Report—The United States Federal Reserve System Different … [Read more...]
200: The Great National Debt Debate
Joshua Sheats from the Radical Personal Finance podcast and I discuss our different views regarding the national debt and the severity of the U.S. government fiscal situation. Over the past four years, David has created 200 episodes of Money For the Rest of Us. On this 200th episode, he talks with Joshua Sheats, creator of the Radical Personal Finance podcast. They discuss the national debt debate, why local communities are often the driving force behind the national economy and … [Read more...]
169: The Debt Ceiling—What Happens If the U.S. Defaults
What could happen if the U.S. Congress doesn't raise the debt ceiling and defaults on U.S. financial obligations. In this episode you’ll learn: Show Notes The Debt Limit: History and Recent Increases - D. Andrew Austin - Congressional Research Service U.S. Department of Treasury debt limit documents Debt Limit: Myth vs. Fact - U.S. Department of Treasury Here's What Happened the Last Time the U.S. Defaulted on Its Debt - Matthew O'Brien - The Atlantic The … [Read more...]
157: The Most Important Economic Question of Our Time
Why the likelihood of a future fiscal crisis sparked by the national debt depends on whether there is a limited or an unlimited supply of money. Is it possible the federal government's endless borrowing could crowd out the private sector and harm the economy? In this episode you’ll learn: Show Notes Congressional Budget Office 2017 Long-term Budget Outlook Going for Broke: Deficits, Debt, and the Entitlement Crisis - Michael D. Tanner Bernanke’s Paradox: Can He Reconcile … [Read more...]
126: Where Federal Money Flows
Why cutting federal spending and trying to lower the national debt reduces household income and spending, potentially causing a recession. In this episode you'll learn: What does the U.S. federal government spend money on.How big is the U.S. national debt and who owns it.How most people receive more Social Security benefits than they paid into the system.What happens when interest costs becomes a larger portion of the federal budget.What are the levels of national debt and … [Read more...]
MNY107 Plus: Timing Smart Beta, Lending Club Woes and the National Debt Size
This week on Money For the Rest of Us Plus we review a new academic paper on whether it is possible to time exposure to smart beta factors. I also discuss the departure of Lending Club's CEO and whether that should change our opinions on peer-to-peer lending. Finally, we look at different measures of U.S. national debt size and look at Brazilian economy to see why it is experiencing inflation and high interest rates even though it controls its own currency and is in a recession. The … [Read more...]
