That's the question asked over at the Ouside the Beltway blog. There's interesting constitutional argument made that they are not, but there are examples given in the comments that say they are. In any case, as the issuance of them goes on and as they are now being traded in the financial markets, it's leading me to ask this: Why fix the budget problem if you can pay off in IOUs indefinitely?
After a while, as the blog post linked above suggests, don't these become a unique currency?
Sort of like Confederate dollars? I suppose they become legal when California declares independence from the rest of the US.
ReplyDeleteOne could also ask why are green backs legal since they aren't backed by something tangible like gold.
I suppose they remain valuable as long as the rest of the market believes they have value.
"the Ouside the Beltway blog. There's interesting consitutional argument"
ReplyDeleteVanna, I'd like a "t". Make it a double, please.
:-)
(scess -- Vanna, some more please, quickly!)
Corrected!
ReplyDelete