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 away the high ground in a fight; to climb in the water to fight the shark is just irrational when you can stay in a boat and throw sticks of dynamite. It reminded me of General MacArthur dooming American troops to being starved out of Bataan by the Japanese Army by him neglecting to secure his food depots.
“One depot alone, at Cabanatuan on the central Luzon plain, held fifty million bushels of rice—enough to feed U.S. and Filipino troops for over four years.”
American Caesar: Douglas MacArthur 1880 – 1964
UPDATE: Tsy blaming the Fed for not issuing the TDC is weak, like blaming your dog for you not going out for a walk this evening. The Federal Reserve Act’s dispute resolution procedure could have been designed by a Saudi marriage counselor.
“Wherever any power vested by this chapter in the Board of Governors of the Federal Reserve System or the Federal reserve agent appears to conflict with the powers of the Secretary of the Treasury, such powers shall be exercised subject to the supervision and control of the Secretary.”