Debt is not imaginary and never goes away unless actually paid off. So what happens when states’ debt is “paid for” with fiat money?
“Debt is not imaginary and never goes away unless actually paid off. So what happens when states’ debt is “paid for” with fiat money?”
Debt can also go away when there is a default on the obligation. It may be we are about to be treated to a spectacle where Obama, the Democrats, and the media unite to demand the US Treasury partially bail out Puerto Rico. If the GOP doesn’t agree it is because they are prejudiced against brown people and the poor. If the GOP caves and supports a Puerto Rico bailout from the US treasury, a precedent has been set. When Illinois, California, New Jersey, Michigan, Massachusetts or another liberal f
I no longer have any confidence the Republicans will hang tough on a Puerto Rico bailout, particularly with election year politics underway. Rove will tell Boehner and McConnell to capitulate and get it out of the news.