4 Responses to John Dean

  1. imhotep January 15, 2013 at 11:06 am #

    This was a very nice intellectual exercise on Dean’s part. But beyond that it’s meaningless. Except to point out to lots of lawyers another way to make lots of money. Ain’t the Capitalist shadows reflected on the wall grand?

  2. russ January 15, 2013 at 11:48 am #

    “…for such coins are “so cartoonish,” if not “desperate” and gimmicky that they might undermine faith in the nation’s ability to pay its debts…”

    Good grief. ‘Might undermine faith in the nation’s ability to pay its debts’.

    Of course we’re not going to pay our debts. Remember the Spanish-American War of 1898, and the little payment that kept showing up on your phone bill until 1970 or 1980 something – collected for the purpose of paying off that war? We didn’t pay it off until 80-90 years later.

    And it is not like this is simply a public or governmental problem. Look at the mountains of debt of bonds, notes, IOUs, etc., etc., that exist in the private sector.

    All these things depend on unlimited growth to ever have a ghost of a chance of being paid back – such debt is now in the quadrillions while all the world’s GDPs put together only add up in the trillions.

    It is farcial to think such debt is ever going to be repaid.

    Because of total corruption in the financial sector, markets can no longer discover the true value of anything.

    The whole system is a fraud.

    So, if we collapse over some “how many angels on the head of a pin” constitutional argument – and why on earth do we very soberly invoke very serious constitutional arguments related to debt when we shovel away basic liberties every day – isn’t that just a sign of the times?

    Relax and enjoy the collapse of all that is artificial.

  3. quixote January 15, 2013 at 1:21 pm #

    A quadrillion = 1000 trillion.

    Total current US Federal debt: around $16.5 trillion. So not really “quadrillions” territory.

    GDP is near $16 trillion per year. So this is roughly like a person who makes $100,000 per year owing on a $100,000 mortgage. With the added bonus that if the government has trouble making payments, it can raise taxes.

    That last is where the deficit hysteria really comes from. It’s the people with money thinking, “ZOMG, they might be raising my taxes. Quick. Make sure sick and old people pay for it instead.”

    And as for not paying debts, that’s defined as not having paid them in the past. If you pay the interest and refinance (ie float new bonds) in an orderly fashion, investors don’t care if it takes 90 years. That’s actually paying your debts, not defaulting.

    I agree with you that past performance may not be indicative of future results in this case. There’s a lot of assumed growth and ignored expensive climate change that’s not going to work out.

  4. lless January 15, 2013 at 8:09 pm #

    The law aside, the politics are prohibitive. Take a stalemate by which Social Security, Veteran’s benefits and Medicare go unpaid because the House Republicans want cuts, and make that the predicate for impeachment proceedings. Yeah right!

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