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View Diary: The Small Ball Trillion Dollar Coin Seigniorage Exception (13 comments)

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  •  Thanks for this, and your effort in general. (2+ / 0-)
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    pdx kirk, Calgacus

    This was very clear.

    I'd really really like to see this done, if for no other reason than to get us off the Bond/Debt-servicing treadmill to bankruptcy. And I don't see how issuing our own currency could possibly be more inflationary that Bonds plus interest, in any case.

    Small point: I wonder how to reconcile what I've always heard -- the Fed turns its profits over to the Treasury at the end of the year -- with this:

    6.4 Trillion in debt subject to the limit was owed by the Treasury to other agencies and to the Fed itself.
    From whence comes our debt to the Fed? It must be Bonds they bought, right?

    The one reason I was sold on the Platinum Coin comes from being able to cut out the need for Bonds entirely, if this amateur understands it correctly. Issuing bonds means we have to come up with both the principle and the interest when they're due. Which means a built-in tendency to a deficit. 2012's deficit was $1.1TR, and $360B of that was interest, about a third of the deficit.

    In effect, we've been issuing interest-paying Bonds to pay off the interest on previous Bonds. I think Tony Soprano would be thrilled to get someone to sign up for that kind of deal.

    (Let's never forget, of course, that the end of our Suicidal Permanent War Against Every Conceivable Threat Everywhere Ever would be a great budget-balancing aid.

    Again, thanks for a clear presentation.


    The Internet is just the tail of the Corporate Media dog.

    by Jim P on Tue Jan 08, 2013 at 01:48:00 PM PST

    •  That's right! (2+ / 0-)
      Recommended by:
      Jim P, Calgacus

      It is bonds previously bought by the Fed still awaiting maturity. Not all bond require repaying principal. There are also securities called consols that don't require repayment, but do pay interest in perpetuity! Those would not count against the debt ceiling, so they are also an alternative to PCS. From my point of debt is important because of its political uses by austerians. That's why I want to pay it off, and that's part of the reason why I propose the $60 T coin.

      •  There'd be a clean feeling, a burden lifted (1+ / 0-)
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        Calgacus

        and palpably felt by the Body Politic if we just resolved the debt issue quickly. So the PCS could be Change which enlivens Hope!


        The Internet is just the tail of the Corporate Media dog.

        by Jim P on Tue Jan 08, 2013 at 10:49:12 PM PST

        [ Parent ]

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