Hopefully final thoughts on this legal bit surrounding debt limit:

It is prudent cash management for Treasury to hold $750bn in cash on hand (or whatever they need to pay 5 days worth of payments) generally and on the day that the debt limit is reinstated. The TGA drain…

🚨NEW ANALYSIS🚨- Donald Trump's proposed 60% tariff on Chinese imports would massively raise tax rates but might generate 𝐧𝐨 𝐧𝐞𝐰 𝐫𝐞𝐯𝐞𝐧𝐮𝐞.

These tax increases will mostly or entirely 𝑢𝑛𝑝𝑎𝑦 𝑓𝑜𝑟 𝑡ℎ𝑒𝑚𝑠𝑒𝑙𝑣𝑒𝑠!

via CRFB.org
crfb.org/blogs/donald-t…

Bottom line: In 2021, Treasury sought legal opinion to redefine precedent, allowing them to hold cash around $450bn rather than draw down to $134bn given concerns about lower cash figure. In 2025, expect the same policy, meaning $750bn in TGA. More in 🧵
twitter.com/DonFSchneider/…

Perhaps this thread shook something loose? Thanks to reporting from Krawzak & Cohn at Roll Call, apparently the DOJ quietly published a legal memo on Friday explaining the 2021 episode. Very unusual. Stay tuned as I break it down
justice.gov/olc/media/1346…
twitter.com/DonFSchneider/…

You can tell how indefensible a policy is by looking at how far it has to be spun to make it sound acceptable to the people who aren’t paying attention.

Very much disagree. This proposal is akin to taxing capital for the sake of taking capital except in the most distortionary way possible (raising the rate). Nothing wrong with capital being owned by foreigners or in 401k. Better way at capital is reforming corp tax base

House Speaker Mike Johnson deserves credit for plowing ahead on U.S. support to Ukraine and Israel over the loud objections of his right flank. Few if any votes in the 118th Congress will be as consequential.
on.wsj.com/4aGj4em

Pretty incredible stat from Zachary Liscow's recent paper!

An estimated 90% of details in environmental reviews are included to ward off potential litigation.

More evidence that litigation is the root problem with NEPA reviews.

Seems like a very worthwhile & uniting issue for Congress. Whether it is energy infrastructure, chips, defense industrial base and ships, housing, we need to make it easier to build.