Thursday, July 28, 2011

Jack Balkin backs coin seigniorage, exploding options and the 14th Amendment

Knight Professor of Constitutional Law at Yale Law School Jack M. Balkin has an op/ed at CNN analyzing the effect of potenial default, the president's constitutional obligations, and three options for avoiding default, using coin seigniorage or exploding options, or invoking the 14th Amendment.

Congratulations Beowulf and Joe Firestone. This has now broken into the mainstream.

(h/t commentator TomatoBasil)


Anti said...

Mike Norman,

Sumner's done another post on MMT:

You understand conventional macro, so I wonder if you can answer the questions he poses.

Tom Hickey said...

Warren and JKH have already responded at Sumner's place.

why don’t you ask me first before making this silly post?
You are addressing two separate issues.
The first involves ramifications of altering the duration of govt. liabilities.
The second the effect of interest rates on the price level.
Your combination of the two would be one several policy options with regard to each.
Warren Mosler
MMT First Generation

mike norman said...

JKH and Warren Mosler responded to that post. I think they answered him.

Letsgetitdone said...

Thanks, Tom. It does look like we're making progress. At least we'll know that the White House knows about it. CNN is too visible to miss.

Adam2 said...

If they don't do these options can't the American people sue if they are not paid what they are due?

selise said...

good for jack balkin too. this almost makes up for the filibuster rule nonsense he was peddling when that was the distraction of the season.

studentee said...

yes congrats to beo and mr. firestone

Jim Baird said...


It seems to me that anyone who is not aid what they are owed by the Feds has standing to sue the President in court for redress, and could specifically cite the coin seignorage option in their case. In fact, I could see a sufficiently ballsey judge ordering him to do it!