This is Alice in Wonderland looking through the looking glass at debt management
—Rep. Greg Walden (R., Ore.), quoted in WSJ
Walden fears the trillion dollar coin solution to Republican obstruction. Mint a coin with a trillion-dollar denomination, deposit it at the treasury, and use it to buy back treasuries. No more debt-ceiling crisis. If anyone has passed through the looking glass, though, Walden and his GOP peers have led the way.
Despite having run up a terrible tab for the many programs he and his colleagues voted through. Despite having voted Nay for the Pay as You Go rule, which would have blocked any tax cuts without any off-setting tax increases or spending cuts. Walden and his peers in the Republican-led House have decided that the nation’s debt-payment should be optional.
Walden and his peers have combined a commitment to spending with a insidious refusal to pay the bills. It’s a world set in reverse, out of kilter with our expectations: where text reads backwards, chess-pieces come to life, and the White Queen can remember events before they have happened. It’s the world through the looking glass.
A trillion-dollar coin may sound far-fetched, but we didn’t arrive at it by accident.
So, Alice, what will it be?