Why the U.S. is closing in on both a debt default and a government shutdown. Topics covered include:How a government shutdown differs from a debt ceiling crisisWhy hasn't Congress passed legislation to fund the government and raise the debt limitHow refusing to increase the debt ceiling could impact Social SecurityHow big is the national debt and who owns itWhy we never know how much federal debt is too much: Japan vs the U.S.How federal debt is used and how it has led to financial innovationWhy countries default on their debtWhat are some of the challenges with central banks pegging interest rates and monetizing the debtWhat could cause the U.S. dollar to crash and inflation to soarThanks to Alto CryptoIRA and LinkedIn for sponsoring the episode.For more information on this episode click here.Show NotesAmerica’s debt ceiling is a disaster, though fiscal rules can help—The EconomistTreasury Bulletin, September 2021—Bureau of the Fiscal ServiceMajor Foreign Holding of Treasury Securities—Department of the Treasury/Federal Reserve BoardFed official warns of ‘extreme’ market reaction unless debt ceiling raised by Lauren Fedor, Colby Smith and James Politi - The Financial TimesRepublicans Are Playing a Dangerous Game With Debt by Michael R. Strain—The New York TimesExplainer: What happens when the U.S. federal government shuts down? by Jason Lange—ReutersJanet Yellen Says Treasury Could Exhaust Cash Reserves by Oct. 18 if Debt Limit Isn’t Raised by Nick Timiraos and Kate Davidson—The Wall Street JournalJanet Yellen: Congress, Raise the Debt Limit by Janet Yellen—The Wall Street JournalDevin Carroll on YouTubeIn Defense of Public Debt by Barry Eichengreen, Asmaa El-Ganainy, Rui Esteves, and Kris James MitchenerDifferent Types of Central Bank Insolvency and the Central Role of Seignorage by R. ReisHow do central banks control inflation? A guide for the perplexed by Laura Castillo-Martinez and Ricardo Reis—London School of Economics and Political ScienceCan the Central Bank Alleviate Fiscal Burdens? by Ricardo Reis—London School of Economics and Political ScienceRelated Episodes295: Federal Reserve Insolvency and Monetizing the National Debt338: The National Debt, Inflation, and the U.S. Dollar—What Could Go Wrong?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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