Debt ceiling suspended 90 days – Maybe permanently in future
Currency historian Andrew Gause, author of The Secret World of Money and Uncle Sam Cooks the Books will discuss the recent “Hurricane Harvey relief bill” passed last week by Congress and signed into law by President Trump which gives $15.25 billion as an initial effort to help Texans recover from their devastating storm. The bill authorizes a 90 day suspension of the debt ceiling and a Continuing Resolution authorizing the Treasury to spend the funds necessary to keep the government running for the next three months.
Also announced was the fact that President Trump and Democratic leaders were in discussions about eliminating a statutory limit for government borrowing altogether.
“Many would argue that while the suspension of the debt ceiling is a major event, the elimination of the statutory borrowing limit for Congress would be the most significant monetary event since the Federal Reserve Bank was given the right to issue and control the nation’s money supply back in 1913,” says Gause.
POINTS FOR DISCUSSION
• Tell us about the Harvey Relief bill that was passed last week. Why has it caused such a stir?
• To keep the Government able to keep running, the statutory borrowing limit (debt ceiling) for Congress was not raised, rather it was suspended. What’s the difference between a raised limit and a suspended limit?
• The Office of Management and Budget (OMB) says that the government will need 500 billion dollars to keep running until the end of the year. Does the Treasury have the authority to borrow that much money without asking for Congressional approval?
• How high could the national debt rise over the next 90 days as a result of a suspended debt ceiling?
• Why was this relief bill considered a slap in the face to many Republicans?
• There was major news that followed the bill’s passage: Trump and his Treasury secretary, along with Democratic leaders Schumer and Polosi are discussing doing away with the debt ceiling altogether. Tell us why this idea is being pushed and what no more debt ceiling would mean to taxpayers and America’s overall economic health.
• With no limit on Congressional borrowing, how high could our national debt go?
• You’ve often spoken of the Federal Reserve notes that we carry in our wallets as “shares of stock”. What happens to the value of our shares when there is no longer a limit on the number of shares that can be issued?
• What’s the best way to protect our personal wealth from evaporating due to the unrestrained spending policies of the Treasury and our central bank?
ABOUT ANDREW GAUSE (WWW.ANDYGAUSE.COM)
Andrew Gause is one of America’s foremost experts on American monetary system and the history of US currency. He is the president of SDL Inc., and the author of The Secret World of Money Money and Uncle Sam Cooks the Books.