Will the US issue debt via Special-Purpose Entities in 2023?
6
32
110
resolved Jan 1
Resolved
NO

The US is facing a debt ceiling crisis, and one workaround the US government could take to circumvent the debt ceiling is to issue debt via "Special-Purpose Entities":

Steven Schwarcz, a professor at Duke Law and expert on capital markets, has proposed getting around the debt ceiling by having the Treasury Department create a “special-purpose entity” to issue new securities, distinct from traditional Treasury bonds, that can pay for government expenditures. Because they’re not Treasury bonds, these securities would not be subject to the debt limit.

This may seem bizarre, but Schwarcz got the idea from state and municipal finance in the US; many states raise most of their debt with special-purpose entities, rather than by directly issuing bonds, often so they can get around their own state debt limits.

https://www.vox.com/policy-and-politics/22684328/us-debt-ceiling-government-shutdown-biden-democrats

Resolves YES if in 2023, the US federal government issues debt via Special-Purpose Entities, otherwise NO.

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