Tag Archives: national debt

Washington’s recession-fighting toolbox is nearly empty as US economy braces for possible coronavirus outbreak

Investors, policymakers, businesses and the general public are increasingly concerned the coronavirus’ rapid spread will lead to a recession. While this outcome is hard for economists like me to predict, we do know one thing: The U.S. is not prepared to fight a deep recession.

Policymakers basically have two methods for reversing a downturn: monetary stimulus, primarily through reduced borrowing costs; and fiscal stimulus, when the government spends more or cuts taxes.

Unfortunately, the U.S. currently has dim prospects for success with either option. Continue reading →

Debt Relief—Japanese-style—Could Work Here

Japan has found a way to write off its national debt without creating inflation. Why can’t we do that?

By Ellen Brown. Published 7-3-2017 by YES! Magazine

Minatomirai 21, newly developed bayside district in Yokohama, Japan. Photo: Gleam [CC-BY-SA 3.0] via Wikimedia Commons

Let’s face it. The U.S. government is never going to pay back a $20 trillion federal debt. The taxpayers will just continue to pay interest on it, year after year.

A lot of interest.

If the Federal Reserve raises the Federal Funds Rate, which is the interest major banks charge each other for overnight loans, to 3.5 percent and sells its federal securities into the market, as it is proposing to do, the projected tab will be $830 billion annually by 2026. That’s nearly $1 trillion owed by the taxpayers every year, and that just covers interest. Continue reading →

Occupy World Writes

The Movement Continues – Globally

Tag Archives: national debt

Washington’s recession-fighting toolbox is nearly empty as US economy braces for possible coronavirus outbreak

Debt Relief—Japanese-style—Could Work Here

Japan has found a way to write off its national debt without creating inflation. Why can’t we do that?