{"id":60032,"date":"2021-10-22T07:13:44","date_gmt":"2021-10-22T12:13:44","guid":{"rendered":"https:\/\/olduvai.ca\/?p=60032"},"modified":"2021-10-22T07:13:44","modified_gmt":"2021-10-22T12:13:44","slug":"why-do-central-banks-want-higher-inflation","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=60032","title":{"rendered":"Why Do Central Banks Want Higher Inflation?"},"content":{"rendered":"
\n

Why Do Central Banks Want Higher Inflation?<\/a><\/h3>\n<\/header>\n
\n
\"Why<\/a><\/figure>\n

The debt ceiling debate in U.S. Congress and related political nonsense brings even more to light the exponential growth in US federal government debt. US government debt has doubled in the 10 years since the last major debacle Congress created over raising the debt ceiling back 2011. The debate and Congress\u2019s unwillingness to increase the limit back in August 2011 resulted in declining equity markets. It also resulted in Standard and Poor\u2019s downgrading U.S. debt to AA+ from AAA!<\/p>\n

The Political Standoff<\/strong><\/p>\n

The political standoff over raising this arbitrary restriction of how much debt the US can issue has become just another political lever in the dysfunctional Congress. As Secretary Yellen points out\u2026<\/p>\n

Raising the debt ceiling doesn\u2019t authorize additional spending of taxpayer dollars. Instead, when we raise the debt ceiling, we\u2019re effectively agreeing to raise the country\u2019s credit card balance, and in this case, 97% of that balance was incurred by past congresses and presidential administrations. Even if the Biden administration hadn\u2019t authorized any spending, we would still need to address the debt ceiling now. Raising the debt limit was a regular occurrence \u2013 congress has either permanently or temporarily raised the debt limit 80 times since 1960. And before 2011, this was done generally with little debate as raising the debt ceiling does not approve new or additional spending but allows the government to borrow in order to pay already approved spending.<\/em><\/p>\n

Janet Ye<\/a>llen WSJ Op-Ed 19 September 2021<\/a><\/cite><\/p><\/blockquote>\n

That\u2019s right it doesn\u2019t authorize new spending it only allows for the U.S. Treasury to borrow enough to carry out the mandates of Congress for spending that has already been authorised. At least for now Congress approved enough of an increase to keep the U.S. government solvent until December 3.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Why Do Central Banks Want Higher Inflation? The debt ceiling debate in U.S. Congress and related political nonsense brings even more to light the exponential growth in US federal government debt. US government debt has doubled in the 10 years since the last major debacle Congress created over raising the debt ceiling back 2011. The […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,195,8689,380,426],"class_list":["post-60032","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-debt","tag-goldcore-com","tag-government-debt","tag-inflation"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60032","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=60032"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60032\/revisions"}],"predecessor-version":[{"id":60033,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60032\/revisions\/60033"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=60032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=60032"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=60032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}