Dimon's War Room

[Jolly]

Biden refuses to negotiate. Trump has given Congress political cover.

If I was Jamie, I'd give The Resident a call...

https://finance.yahoo.com/news/jamie-dimon-reveals-jpmorgan-war-085029322.html

[Mik]

He’s not keeping quiet. I think his message is right.

[jon-nyc]

This is a common but flawed analysis:

Congress sets a ceiling on how much debt the U.S. Treasury can incur, and can pass legislation that increases the borrowing cap by a given amount. If the ceiling is reached, the Treasury is barred from borrowing more money to cover the spending obligations of the U.S. government. That would force the Treasury to stop paying for things the U.S. government has already committed to pay, leading to a default.

“Paying for things the US government has already committed to pay” is an obligation of the Executive branch based on a law passed by Congress and signed by a President.

“Not borrowing money “if the ceiling is reached” is an obligation of the Executive branch based on a law passed by Congress and signed by a President.

The presumption that the second overrides the first is just false. They are both obligations of the executive. There is no inherent priority among the two obligations. They both are straight-up obligations of the Executive.

There is no non-gimmicky way for the Executive branch to act once we reach the debt ceiling that is constitutional.

The only options are the gimmicks - trillion dollar coins or premium bonds. Those are the only ways I know of to satisfy both requirements of the executive branch.

[xenon]

I don't understand how it's acceptable for these guys to play political chicken with the livelihood of citizens.

[Jolly]

@xenon said in Dimon's War Room:

I don't understand how it's acceptable for these guys to play political chicken with the livelihood of citizens.

Ok, what's the right answer?

Cut spending?

Borrow into default?

Cut a deal?

[Axtremus]

@Jolly said in Dimon's War Room:

@xenon said in Dimon's War Room:

I don't understand how it's acceptable for these guys to play political chicken with the livelihood of citizens.

Ok, what's the right answer?

Cut spending?

Borrow into default?

Cut a deal?

Cut military spending.
Borrow to avoid default.
Cut a deal to raise taxes.

[xenon]

@Jolly said in Dimon's War Room:

@xenon said in Dimon's War Room:

I don't understand how it's acceptable for these guys to play political chicken with the livelihood of citizens.

Ok, what's the right answer?

Cut spending?

Borrow into default?

Cut a deal?

Fund what has already been legislated, spent and billed.

It’s like threatening to not pay the credit card bill when you’re fighting with your spouse about spending too much money.

You already spent the money - you’re just shooting yourself in the foot.

[Jolly]

It's not nearly that simple.