Wow! Our mailbox was packed with lots of Paulistas coming to the defense of the Congressman over the misinterpretation of our recent post about the bill he introduced to cancel Treasury debt held by the Fed. In no way were we making a political statement for or against Rep. Paul and was not accusing him of being xenophobic. Pleeeeeeeazzzzeee!
In fact, we think Mr. Paul understands monetary policy and the causes of the current crisis better than anyone else in Congress. We agree with much of what he has to say, which seems right from Charles Kindleberger, one of our gurus and heroes.
What we meant is that we are in such bizarre times it wouldn’t surprise us to see some xenophobic Congressman introduce legislation to cancel the U.S. debt held by foreigners. Getting it passed is another thing. This happened many times during the LDC debt crisis in Latin America, by the way. Are we clear now?