{"id":59059,"date":"2021-09-09T09:31:14","date_gmt":"2021-09-09T08:31:14","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=59059"},"modified":"2021-09-09T09:31:14","modified_gmt":"2021-09-09T08:31:14","slug":"the-us-cant-run-out-of-dollars-unless-some-deeply-misguided-politicians-decide-that-it-should","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2021\/09\/09\/the-us-cant-run-out-of-dollars-unless-some-deeply-misguided-politicians-decide-that-it-should\/","title":{"rendered":"The US can\u2019t run out of dollars, unless some deeply misguided politicians decide that it should"},"content":{"rendered":"<p>The <a href=\"https:\/\/www.ft.com\/content\/4433d8ef-7d18-4c07-ba08-7f05fcbdb0b8\" target=\"_blank\" rel=\"noopener noreferrer\">FT includes this comment <\/a>this morning:<\/p>\n<blockquote><p>Janet Yellen has warned the US Treasury risks running out of cash next month unless Congress increases its borrowing limit, as Joe Biden\u2019s administration grows increasingly worried about a possible debt default.<\/p>\n<p>In a letter to congressional leaders on Wednesday, the Treasury secretary said she could not offer \u201ca specific estimate\u201d of when it would run out of cash, but the \u201cmost likely outcome\u201d was that its coffers would be \u201cexhausted\u201d during October.<\/p><\/blockquote>\n<p>The comment is, of course, misleading. There is no chance of the US running out of cash, or defaulting, unless that is what the Republicans choose that it should. The US can in reality create as much money as it wants, subject (if it is prudent) to inflation constraints and, of course, politics.<\/p>\n<p>The \u00a0Republicans could try to crash the dollar. But let\u2019s be quite clear, that is not necessary. And the impression given that the US is running out of money is false. It can\u2019t do that unless some deeply misguided politicians choose otherwise.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The FT includes this comment this morning: Janet Yellen has warned the US Treasury risks running out of cash next month unless Congress increases its<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2021\/09\/09\/the-us-cant-run-out-of-dollars-unless-some-deeply-misguided-politicians-decide-that-it-should\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35,174,106],"tags":[],"class_list":["post-59059","post","type-post","status-publish","format-standard","hentry","category-economics","category-modern-monetary-theory","category-politics"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/59059","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=59059"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/59059\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=59059"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=59059"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=59059"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}