Washington Post on “In Debt” vs. “Insolvent”

Wednesday, October 24, 2012
Posted in category Economics

This is one from the “Yes, someone really wrote this” files. The Washington Post “fact checker,” Josh Hicks, has put it in writing that the United States government, in spite of its trillions of debt, is not insolvent because insolvency implies an inability to pay debt, and the US can pay its debt because it “has little trouble” borrowing or printing money.

Young Josh calls himself a “government/watchdog” journalist. If that is a watchdog bark, I can’t wait to hear from the poodle in the pantry. Upon further viewing of Josh’s monochrome writing and his mini-biography, how in the heck do these people get jobs as journalists at the major house organs without possessing basic thinking skills?

Forget I asked that.

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4 Responses to Washington Post on “In Debt” vs. “Insolvent”

  1. Bill says:

    October 24th, 2012 at 9:11 am

    This is similar to the argument that because there are a bunch of IOU’s in the Social Security Trust Fund, it means that system is solvent. It’s another way our politicians are stealing from us, and this is even more odious than direct taxation, because it puts a distinct and certain burden on future taxpayers, most of whom have no clue.

  2. M. Terry says:

    October 24th, 2012 at 7:35 pm

    Well, if a Washington “Fact Checker” said it, it must be true.


    Of course, everyone, everywhere, will continue to honor those bucket-loads of printed lucre, won’t they?

  3. Wade says:

    October 25th, 2012 at 3:11 pm

    That’s just another example of sophistry from TPTB. Here’s another one regarding Germany’s gold that is held outside of Germany:

    “In reality, it does not matter one bit whether the Federal Reserve Bank of New York actually has the German central bank’s gold, or whether the gold is pure.

    As long as the Fed says it is there, it is as good as there for all practical purposes to which it might be put. It can be sold, leased out, used as collateral, employed to extinguish liabilities and counted as bank capital just the same whether it exists or not.”

    John Carney, CNBC, The Germans Are Coming For Their Gold

    “‘When I use a word,’ Humpty Dumpty said, in rather a scornful tone, `it means just what I choose it to mean — neither more nor less.’

    `The question is,’ said Alice, `whether you can make words mean so many different things.’

    `The question is,’ said Humpty Dumpty, `to be master — that’s all.’”

    Lewis Carroll, Through the Looking Glass


  4. M. Terry says:

    October 25th, 2012 at 4:26 pm

    Incidentally, money now DOES grow on trees…

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