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"Certainly when presented with a Trillion Dollar Coin from a clearly fiscally constrained Treasury, the Federal Reserve may wish to consider a substantial haircut to manage its risk."
Question, what's the risk to the Fed? The fed wouldn't offload the coin, that's the whole point isn't it? The Treasury mints a coin, deposits it at the fed and the fed credits the Treasury's acct. The Fed's assets go up $1T and their liabilities goes up $1T, both sides balance and as Mosler has said, the lights can be turned off and the bankers can hit the links.
The entire thing is a giant charade anyways, since a coin and a 0% interest treasury bond are indistinguishable other than the label we apply to it, the whole point is it's a game of labels.
And why platinum? Why not stamp it out of recycled beer cans to really drive the point home?
"Certainly when presented with a Trillion Dollar Coin from a clearly fiscally constrained Treasury, the Federal Reserve may wish to consider a substantial haircut to manage its risk."
ReplyDeleteQuestion, what's the risk to the Fed? The fed wouldn't offload the coin, that's the whole point isn't it? The Treasury mints a coin, deposits it at the fed and the fed credits the Treasury's acct. The Fed's assets go up $1T and their liabilities goes up $1T, both sides balance and as Mosler has said, the lights can be turned off and the bankers can hit the links.
The entire thing is a giant charade anyways, since a coin and a 0% interest treasury bond are indistinguishable other than the label we apply to it, the whole point is it's a game of labels.
And why platinum? Why not stamp it out of recycled beer cans to really drive the point home?