Over the debt limit?

Via the Freeman online:

“A closer look at the nation’s balance sheet shows that the United States already is billions of dollars over the current debt limit — a debt that includes bonds that date back to the administration of George Washington. The federal debt ceiling is $14.294 trillion, set to be reached by Aug. 2 if Congress and the president don’t reach a deal to extend it. As of the most recent accounting, however, the United States has $14.343 trillion in debt — $48.9 billion more than the debt limit. That’s because Congress, over the years, has exempted certain kinds of debt from the ceiling.”

There are just all kinds of creative ways to deal with the debt ceiling!

Media takes Ron Paul seriously: world ends, etc.

When The New Republic has an article viewing Ron Paul in a positive light, you know politics as we know it is forever changed. Well, maybe not forever. But at least we get an interesting conversation out of it. Here's the scoop:

Representative Ron Paul has hit upon a remarkably creative way to deal with the impasse over the debt ceiling: have the Federal Reserve Board destroy the $1.6 trillion in government bonds it now holds. While at first blush this idea may seem crazy, on more careful thought it is actually a very reasonable way to deal with the crisis. Furthermore, it provides a way to have lasting savings to the budget.

Tyler Cowen has an analysis here. Unfortunately, I'm not an expert in economics, and I can't readily make a sophisticated assessment. I just find the politics pretty fascinating.