|This series provides a framing document for Platinum Coin Seigniorage (PCS). In the three previous parts of the series, I pointed out that there are three classes of opponents of High Value Platinum Coin Seigniorage (HVPCS, $30 T and above). The first and largest group opposes all Platinum Coin Seigniorage (PCS) of whatever type. The second, opposes HVPCS, but favors using the Trillion Dollar Coin (TDC) for the limited purpose of avoiding the debt ceiling. The third, opposes HVPCS, and doesn't really favor using the TDC either, except, perhaps, as a last resort to avoid the debt ceiling. It favors an incremental approach to PCS beginning perhaps in the millions or billions in face value, and over a long period of time, after giving people years to adjust to Treasury using platinum coins with unusual, and unprecedented, face values, eventually building up to a TDC.
Parts two, and three, this post (Part Four), and the two remaining posts in this series consider still more objections brought forward by people in one or more of these categories, and my replies to them. As you're seeing, if you're following the series, the opponents of HVPCS are throwing everything but the proverbial kitchen sink at it. In this post, I'll consider some political/economic objections to PCS.
An HVPCS coin is a less acceptable option than a TDC or HVCS coin
Less acceptable to who? Certainly, HVPCS would be less acceptable to the FIRE sector than other PCS options. But the truth is that all PCS options would be unacceptable to them. They will scream hysterically if any PCS option is used; and then will raise huge amounts of money, and work as hard as they can to repeal PCS legislation. So, what's the difference whether an HVPCS, TDC, or HVCS approach to PCS is used? Why do we care about how they will react?
The important question is how most people will react; not how special interests will. And people will react much more favorably to PCS, if enough money is minted to fill the public purse, change the game, and solve their perceived debt/deficit problem, than will react if only enough is minted to avoid the debt ceiling, or to fund specific programs with relatively small amounts of seigniorage. That's why HVPCS is actually a much more acceptable option than either of the other two.
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