U.S. Debt Ceiling Default

 Ref: Amber Phillips,  “Still no debt ceiling deal”,  May 25, 2023

Subject: U.S. Hold Off Default

The U.S. does not have to default on its debts. It can hold off indefinitely by paying no more than it receives from the states.
Looking at the Rockefeller Institute of Government Balance of Payments report, March 2023 (p. 17), we can see that the 50 states receive different amounts from the federal government compared to how much they send to Washington on a per capita basis.
Connecticut receives the smallest return from the U.S., getting $1.05 for each dollar sent to the U.S.
Kentucky receives the most from the U.S., $3.41 for every dollar they send.
Pres. Biden should immediately issue an Executive Order that each state will only receive, on a per capita basis, in ratio to what it has sent.
Connecticut will receive $.95 of each dollar they should receive.
Kentucky will receive $.29 of each dollar they would normally receive.
This will continue until the debt ceiling issue is resolved.

Sent to Washington Post, May 25, 2023

 

Resolving the 2023 Debt Ceiling impasse

The argument about the Federal Debt Ceiling is that the United States will go bankrupt if the debt ceiling is not raised.
There is an easy way around this.
Pres. Biden should issue an Executive Order that the Federal dollars sent to any State should not exceed the number of dollars the Federal Government receives from that State.
The Federal Government would decide which recipients and how much they receive within that State.
A few states, including California, would only be marginally inconvenienced because they do not have a large Balance of Payments difference.
But many states, mostly ‘red’ in politics, would be greatly inconvenienced.
For instance, in the last reporting period*, Kentucky received $3.41 for every dollar sent to the U.S. on a per capita basis.
The people and the states should be informed that full payments will be restored once the Debt Ceiling is raised.

Sent to Mercury News     ca. 05/18/23
Sent to NY Times            05/21/23

*Rockefeller Institute of Government, Balance of Payments report, March 2023, p. 17