Matthew Yglesias

@mattyglesias ↗

Deleted No

Hibernated No

Last Checked Jan. 15, 2023

Created

Wed Jan 11 11:48:19 +0000 2023

Likes

Retweets

Source

Twitter for iPhone

View Raw Data

JSON Data

View on Twitter

Likely Available

Matthew Yglesias @mattyglesias

Instead of saying “give us $100 for this $100 bond and we’ll pay you a modest interest rate?” go to auction and say “here’s a $10 bond with a very high interest rate, how much will you pay us for it?” Investors would pay more than $10 for that bond. https://t.co/COhytbUf63 — PolitiTweet.org

Posted Jan. 11, 2023

Preceded By

Matthew Yglesias @mattyglesias

Here’s how it works: The debt ceiling (which is unconstitutional and superseded by appropriations bills anyway) purports to limit the *face value* of federal debt not the interest, which means Treasury can simply shrink the face value on new issuances. https://t.co/COhytbUf63 — PolitiTweet.org

Posted Jan. 11, 2023

Followed By

Matthew Yglesias @mattyglesias

Thus you generate more than $10 for a $10 increase the face value of debt. And because debt is constantly rolling over, you can replace more than $10 of old face value with the new high-coupon bond — the face value of the debt magically shrinks. https://t.co/COhytbUf63 — PolitiTweet.org

Posted Jan. 11, 2023