Wednesday, January 9, 2013
The Economist — Platinomics
Must-read. The cat is out of the bag. TPC has done its job. The explanation is now in the mainstream. No economist or financial professional can read this and not get it. This is a really succinct and clever account that cuts to the chase. The last mile is really closing fast.
The Economist | Free Exchange
Platinomics
G. I. | Washington
(h/t y in the comments)
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11 comments:
" So instead, the Fed could simply keep the coins in a vault with their owners’ names affixed. When one owner wants to settle payments with another, the Fed could simply switch labels. In the meantime, Treasury gets the equivalent of an interest-free loan from the public and a reprieve from the debt ceiling. Not quite a free lunch, but close enough. "
Isnt that the mathematical equivalent of a direct issued zero interest Treasury Security?
LOL....
Still in the blogosphere, though a more "mainstream venue"
Tom,
Tribe says its legal:
http://www.washingtonmonthly.com/ten-miles-square/2013/01/harvard_law_school_professor_l042276.php
ht Joe F.
rsp,
Isnt that the mathematical equivalent of a direct issued zero interest Treasury Security?
Exactly. "No bonds." Gives bankers heart failure.
As Warren says, tsys are effectively interest paying savings accts at the cb. With the coins, the savings accts remain and the interest is eliminated.
Also the Economist article is a desperate try to cling to status quo. As Joe Weisenthal says, the PCO if understood by the masses, will upend the apple cart. The political consequences are what the PTB fear!
Joe Firestone's latest articles are a very important sequel to Joe W's article
Still in the blogosphere, though a more "mainstream venue"
I don't count NYT, Economist or FT blogs as in the blogosphere. This is a really a different venue, which before the blogosphere would be called op-ed or letters to the editor. These things get read by the profession and circulated in it much more reliably than "the blogosphere." Appearing on these venues gives exposure and imparts caché, and the venues know it, so they are choosy.
C,
" the PCO if understood by the masses, will upend the apple cart."
As we speak, all time high amounts of human mathematical abstraction taking place across western civilization?
Wheels turning?
"Abstraction in mathematics is the process of extracting the underlying essence of a mathematical concept, removing any dependence on real world objects with which it might originally have been connected, and generalizing it so that it has wider applications or matching among other abstract descriptions of equivalent phenomena."
This has to happen for folks to understand these issues...
rsp
This is happening as we enter the digital age. Kids are learning programming from an early age and that means they are learning to think in terms of systems, logic, and symbols. Math is just a set special cases. Used to have to get it through math. That is no longer the case.
Sell to public. Getting crazy now. How about selling pieces of the national parks and just putting name tags on the land? When one owner wants to settle with another just switch the titles. Allow overdrafts at the Fed. Banks have that arrangement.
Allow overdrafts at the Fed. Banks have that arrangement.
There is a reason that the first commandment of central banking is that cb is not permitted to lend to the Treasury. It separates the cb and Treasury functions, making the cb "politically independent," which amounts to putting a command system run by the financial sector at the top of the economy.
If the cb can lend directly to the Treasury or but the Treasury's liabilities directly, who needs the cb? Why not just have the Treasury issue, since in effect that's what happens when the cb funds the Treasury directly.
This is why the cb and Treasury functions need to be consolidated to get rid of the command system run by finance capital.
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