Understanding The Modern Monetary System...
Joe Firestone writes a piece over at Correntewire to report that strange doings are afoot at the Circle K House of Representatives. On May 9, 2013, The Republican House passed H.R. 807 the Full Faith and Credit Act. The Bill says in part: (a) In General- In the event that the debt of the United [...]
A few days ago, I complained that Matt Yglesias seemed to be ripping off Monetary Realism posts, or at least riffing on them. selise pointed out perhaps “great minds think alike” and well, I guess it is in the air. I then said he would start writing about automating fiscal policy because we were writing [...]
We are trying to change the debate a bit over here at MR through a variety of methods, and so I was very happy to see Matt Yglesias rip off ideas from yet another MR comments thread – giving piles of money to the middle class is a good idea right now: “But doing this [...]
In the Mass Psychology thread, we were discussing a floating payroll tax and I suggested it be called a full employment tax system since the payroll taxes would only be paid at their standard rates at full employment; otherwise the further north of FE, the more FICA rates would be automatically reduced. Tom Hickey made [...]
Paul Krugman and Simon Wren-Lewis make a good point – the reason capital-A Austerity seems to come back to us over and over has to do with the psychology of humans, and not as much with the underlying economics. Here’s Wren-Lewis: “when the market starts to punish fiscal profligacy, it is as if a parent [...]
12 USC § 246 – Powers of Secretary of the Treasury as affected by chapter Nothing in this chapter contained shall be construed as taking away any powers heretofore vested by law in the Secretary of the Treasury which relate to the supervision, management, and control of the Treasury Department and bureaus under such department, [...]
Carlos Mucha of Monetary Realism discusses the Trillion Dollar Coin for the New York Times: “Under the Constitution, Congress is given the authority to create money. Congress has delegated this power to create money to two agencies: the Federal Reserve and the U.S. Mint. For decades, the Fed has issued paper money and assisted the [...]
I wanted to come out of retirement (started studying military history and may blog on it some day) long enough to make a point about today’s Tsy announcement that neither Tsy nor the Fed was interested in the trillion dollar coin. Treasury: We won’t mint a platinum coin to sidestep the debt ceiling To throw [...]
We’ve had some discussions within the MR team on the costs of minting a coin vs. the costs of borrowing. It turns out it’s more expensive for the U.S. government to mint a coin than it is for the the government to borrow money. It sounds crazy, but it’s true. If the U.S. mints a [...]
The current debate about the coin is really a debate about the power of government to create money out of thin air at any time it wishes. Out government has outsourced the creation of money to the private banking system, through the specific laws we’ve put in place over the last 100 years or so. [...]
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