The Recurring Saga of the Debt Ceiling with Rohan Grey
When you realize the national debt is little more than a bunch of interest-bearing savings accounts, you will have effectively neutered the politicians and pundits who wield it like a weapon to keep the people in line and tame the working class. Every year in the US, the debt ceiling alarm is rung right on schedule. Just like Halloween.
Interest-bearing Treasury bills are not available to most of us. (Do you have an account with the Federal Reserve? No? Exactly.) Rohan Grey is back to explain how these things work for the select elite. Not only do the rest of us handle money differently—we think about it differently. The words we use have different meanings.
“The average person might think money is the opposite of debt. Well, that's not how the financiers think. That's not how the bankers think. That's not how the hedge fund managers think. For them, cash is debt. Debt is cash. It just depends on what they're talking about.”
We’re supposed to believe the US is teetering on the edge of bankruptcy. Every time a Treasury bill comes due, we should hold our collective breath and pray the government has the funds to pay down another installment of the “debt.” Rohan takes us through the day-to-day buying and selling of Treasurys. The financiers, bankers, and hedge fund managers aren’t worried. At least not about US insolvency. We can exhale.
Steve and Rohan talk about the trillion-dollar platinum coin and the law that makes it a ridiculously simple solution. If only the ruling elite didn’t have a different agenda.
The Macro N Cheese official Rohan Grey cultural references spotter flagged The Rocky Horror Picture Show, a Beatles song (Taxman, of course), Better Call Saul, Seinfeld, and Kaleidoscope, Natasha Lyonne’s new Netflix series. Chuck E. Cheese and McDonald’s pop up as well.Chuck E. Cheese and McDonald’s show up as well.
Rohan Grey is an Assistant Professor of Law at Willamette University in Salem, Oregon, and the founder and president of the Modern Money Network. MintTheCoin.org
@rohangrey on Twitter
