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BBC World Business Report Interview on the Debt Ceiling Crisis

Tonight, I discussed the US Debt Ceiling Crisis on the BBC’s World Business Report.

I suggested that the Republicans in Congress are pursuing the wrong policy and the wrong approach by refusing to lift the debt ceiling. Their policy is renewed Austerity that can only lead to more years of economic stagnation. Their approach is holding the country hostage by threatening to force the government to default on its debt, a type of fiscal terrorism that could cause the stock market to crash and the economy to spiral into Depression. CLICK HERE to watch this interview now.

Yesterday, Macro Watch discussed the Debt Ceiling Crisis in detail in a 15-minute video. To watch that video (and all the videos in the Macro Watch archives) CLICK HERE TO SUBSCRIBE TO MACRO WATCH. For a 50% discount, use the discount coupon code: Ceiling.

One comment

  1. Richard, You are correct that the Congress should raise the debt ceiling. However, I don’t agree with your analogy about the Reagan administration. I know that under the current international monetary system, increasing the debt level of the US is necessary to provide liquidity to the international trade/markets. However, it is inappropriate for the government to just continue to spend, often recklessly. They should look at what is a reasonable budget, balanced between investment and consumption/transfers. We have for too many years spent excessively on the military. Those expenditures have advanced technology, but they have also financed war after war. Investments could advance technology without investing so heavily in the military, else one day there may not be a livable world left for mankind. And back to the budget and debt ceiling, it doesn’t matter what Japan’s debt to GDP ratio is. Look at Japan. Their economy is not the envy of the world. You seemed to be worried about a “new depression”, but bringing the US spending back to a reasonable level would be good, though it should be done more slowly than simply failing to raise the debt ceiling. Much of what has been approved for spending by Congress was approved by the Democratic led Congress, not all of which was supported by the Republicans at the time of the budget. Something I think you failed to point out in your interview.

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