Sound Banking

Friday, April 14th, 2017

The level and growth of a nation’s private debt, more than public debt, predicts the worst recessions.

Tuesday, April 11th, 2017

The Bipartisan Budget Act of 2015 suspended the debt ceiling through mid-March of this year. On March 16, the debt ceiling was raised to the current level. When the debt ceiling is reached, the Treasury will not be able to issue more debt to borrow new funds from the public. Instead, the Treasury must take extraordinary measures to raise cash. Extraordinary measures are policies that temporarily lower the national debt by reducing the Treasury securities held by government agencies—known as intragovernmental debt.

Thursday, March 30th, 2017

Ongoing federal budget deficits have required the U.S. Treasury to issue substantial amounts of debt to finance government spending. The Treasury has been able to easily issue debt since the federal government enjoys the highest credit rating, which lowers the interest rate that creditors demand. Historically low interest rates in general have further helped limit interest expense.

Friday, February 17th, 2017

Throughout its history, AIER has pointed out the dangers of excessive amounts of both private and public debt.

Tuesday, May 26th, 2015

Facing the Facts

How the federal government collects and spends money has changed substantially over the years. Policy decisions made many years ago influence federal outlays today in important ways. Because of changes in the structure of the budget, the annual appropriations process is constrained, and therefore, is a less powerful tool for addressing fiscal challenges than it used to be. 

Wednesday, February 26th, 2014
by Allan H. Meltzer, Carnegie Mellon University and Hoover Institution
Tuesday, January 29th, 2013
by Adrian Ash AMID the brouhaha over Germany's gold reserves at the Bundesbank, there's another central bank using gold actively to bolster its currency and financial stability.
Wednesday, December 26th, 2012
by Frank Shostak On Wednesday December 12, 2012 Fed policy makers announced that they will boost their main stimulus tool by adding $45 billion of monthly Treasury purchases to an existing program to buy $40 billion of mortgage debt a month.
Monday, November 26th, 2012
By Chris Dillow Stock markets rise and fall with US inflation expectations