Sunday, February 14, 2010
President Obama Signs Law Raising Public Debt Limit from $12.4 Trillion to $14.3 Trillion
The bill also establishes a statutory Pay-As-You-Go procedure requiring that new non-emergency legislation affecting tax revenue or mandatory spending not increase the Federal deficit – in other words, that any new spending or tax cuts be paid for with new taxes or spending cuts.
That's it...imposing a fixed quantity of money in an economy that is suffering from a massive lack of aggregate demand and high unemployment. Quasi gold standard. Welcome to "the new normal."