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Framing Platinum Coin Seigniorage: Part Five, Institutional Objections

This series provides a framing document for Platinum Coin Seigniorage (PCS). In the four previous parts of the series, I pointed out that there are three classes of opponents of High Value Platinum Coin Seigniorage (HVPCS, $30 T and above). The first and largest group opposes all Platinum Coin Seigniorage (PCS) of whatever type. The second, opposes HVPCS, but favors using the Trillion Dollar Coin (TDC) for the limited purpose of avoiding the debt ceiling. The third, opposes HVPCS, and doesn't really favor using the TDC either, except, perhaps, as a last resort to avoid the debt ceiling. It favors an incremental approach to PCS beginning perhaps in the millions or billions in face value, and over a long period of time, after giving people years to adjust to Treasury using platinum coins with unusual, and unprecedented, face values, eventually building up to a TDC.

Parts two, three, and four, and this post (Part Five), and the remaining post in this series considers further objections to HVPCS brought forward by people in one or more of these categories, and my replies to them. As you're seeing, if you're following the series, the opponents of HVPCS are throwing everything but the proverbial kitchen sink at it. In this post, I'll consider some objections to PCS and HVPCS based on their predicted institutional impact. Read below the fold...

letsgetitdone's picture

Framing Platinum Coin Seigniorage: Part Four, Political/Economic Objections

This series provides a framing document for Platinum Coin Seigniorage (PCS). In the three previous parts of the series, I pointed out that there are three classes of opponents of High Value Platinum Coin Seigniorage (HVPCS, $30 T and above). The first and largest group opposes all Platinum Coin Seigniorage (PCS) of whatever type. The second, opposes HVPCS, but favors using the Trillion Dollar Coin (TDC) for the limited purpose of avoiding the debt ceiling. The third, opposes HVPCS, and doesn't really favor using the TDC either, except, perhaps, as a last resort to avoid the debt ceiling. It favors an incremental approach to PCS beginning perhaps in the millions or billions in face value, and over a long period of time, after giving people years to adjust to Treasury using platinum coins with unusual, and unprecedented, face values, eventually building up to a TDC.

Parts two, and three, this post (Part Four), and the two remaining posts in this series consider still more objections brought forward by people in one or more of these categories, and my replies to them. As you're seeing, if you're following the series, the opponents of HVPCS are throwing everything but the proverbial kitchen sink at it. In this post, I'll consider some political/economic objections to PCS. Read below the fold...

letsgetitdone's picture

Framing Platinum Coin Seigniorage: Part Three, Political Objections

As I pointed out in Part Two of this series, there are three classes of opponents of High Value Platinum Coin Seigniorage (HVPCS, $30 T and above). The first and largest group opposes all Platinum Coin Seigniorage (PCS) of whatever type. The second, opposes HVPCS, but favors using the Trillion Dollar Coin (TDC) for the limited purpose of avoiding the debt ceiling. Read below the fold...

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Framing Platinum Coin Seigniorage: Part Two, Legal Objections

There are three classes of opponents of High Value Platinum Coin Seigniorage (HVPCS, $30 T and above). The first and largest group opposes all PCS of whatever type. The second, opposes HVPCS, but favors using the Trillion Dollar Coin (TDC) for the limited purpose of avoiding the debt ceiling. The third, opposes HVPCS, and doesn't really favor using the TDC either, except, perhaps, as a last resort.

It favors an incremental approach to PCS beginning perhaps in the millions or billions in face value, and over a long period of time eventually building up to a TDC. The remaining posts in this series consider the many objections brought forward by people in one or more of these categories, and my replies to them. As you will see, the opponents of HVPCS have already thrown everything but the proverbial kitchen sink at it. In this post, I'll consider some legal objections. Read below the fold...

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Framing Platinum Coin Seigniorage: Part One, Basics

How many times have you heard that the Government can only spend money after it raises revenue by either taxing or borrowing? Nearly every time someone talks or writes about the US's public deficit/debt problem? How come nobody asks why, since Congress has the unlimited authority to create coins and currency, it doesn't just create money when it deficit spends? Read below the fold...

One More Reason Bed Bugs More Popular Than Congress

Thread: 

If you happen to catch Bill Moyers’ show this week with his guest Rep. Peter Welch of Vermont or read “Foul Play in the Senate” published at common dreams by Moyers and co-writer Michael Winship, you will discover one more example of how Congressional crony capitalism has reached obscene levels.

Apparently if NYT team Eric Lipton and Kevin Sack hadn’t published their exemplary investigative report most of Congress, let alone the citizenry, would not have even known about a colossal half a billion dollar sweetheart arrangement slipped into a covert clause of the recent “fiscal cliff bill.”

The THREE SENATE PERPETRATORS, long-time enmeshed with a pharmaceutical giant called Amgen, are Republican Minority Leader Mitch McConnell, Democratic Senator Max Baucus, chair of the Senate Finance Committee, and "that powerful committee’s ranking Republican", Orrin Hatch.

The loophole “tucked” into the bill was that Amgen, not mentioned by name, would have two more years of relief from Medicare cost controls for certain drugs used by patients who are on kidney dialysis, including a pill called Sensipar. This gift (to the corporation but not the taxpayers who must foot it) amounts to a whopping half a billion dollars. Read below the fold...

Dr. Margaret Flowers Helps Clear the ‘Fog of Greed’

Thread: 

In a 1/24/13 article in Aljazeera entitled “Top CEOs plan to loot US social programmes”, Dr. Margaret Flowers powerfully calls out the motives of a mendacious “Fix the Debt” campaign launched by 80 CEOs who are determined to cut their corporate taxes even further by decimating social programs beneficial to us, the lower whopping 99% of the American citizenry.

Flowers writes: Read below the fold...

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Can the Federal Reserve Really Refuse To Accept and To Credit A Platinum Coin Deposited By the US Mint?

The issue of whether the Fed can really refuse to accept and credit a deposit of a platinum coin with its face value, is being raised frequently on blog posts about Platinum Coin Seigniorage (PCS) and the Trillion Dollar Coin (TDC). In the past, I've argued that the Fed cannot; and the final decision on taking the TDC off the table was actually made by the President, and not by Chairman Bernanke.

Ellen Brown, the well-known author of The Web of Debt, and also of this recent post on fiat money, direct financing of federal spending, and using platinum coin seigniorage made this comment in a discussion thread at Monetary Realism: Read below the fold...

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Downsides to the Platinum Coin; or Just Defense of the Status Quo?

As part of a wonderful discussion thread on the legal basis for using Platinum Coin Seigniorage (PCS), following a post by beowulf (Carlos Mucha), the first to propose the Trillion Dollar Coin (TDC). Read below the fold...

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Beowulf and Diehl Embrace Trillion Dollar Coin Incrementalism!

A wonderful discussion thread has been going on at Monetary Realism (MR) after a very good new post by beowulf (Carlos Mucha), who first brought forward the proposal for the Executive Branch to use the authority provided in the 1996 Platinum Coin Seigniorage (PCS) legislation to fill the public purse, on whether the Fed had a legal basis for turning down PCS in the form of the Trillion Dollar Coin (TDC). Read below the fold...

Glen Ford/Jill Stein: Obama Unmasked/Un-'Matrixed'

Thread: 

In his 2000 work “Escaping the Matrix: Are You Ready for the Red Pill?” Richard Moore begins: Read below the fold...

‘War on Terror’ Fig Leaf Now Being Used to Destroy Africa

Thread: 

Bill Van Auken of wsws writes:

The escalating war in Africa is neither about terror nor Al Qaeda. Time magazine succinctly outlined the real motives in Mali: “The dangers expand elsewhere, with huge oil reserves attracting Western companies to set up production across the vast Sahel. South of Algeria and Mali sits Niger, a dirt-poor desert country with the world’s fourth largest output of uranium, which supplies France’s crucial network of nuclear-power stations. East of Algeria is Libya, where a number of Western companies exploit some of Africa’s biggest oil reserves.”

This from Seamus Milne:

You'd think the war on terror had been a huge success, the way the western powers keep at it, Groundhog Day-style. In reality, it has been a disastrous failure, even in its own terms – which is why the Obama administration felt it had to change its name to "overseas contingency operations", until US defence secretary Leon Panetta revived the old title this week.

Instead of fighting terror, it has fuelled it everywhere it's been unleashed: from Afghanistan to Pakistan, from Iraq to Yemen, spreading it from Osama bin Laden's Afghan lairs eastwards to central Asia and westwards to North Africa – as US, British and other western forces have invaded, bombed, tortured and kidnapped their way across the Arab and Muslim world for over a decade.

So a violent jihadist movement that grew out of western intervention, occupation and support for dictatorship was countered with more of the same. And the law of unintended consequences has meanwhile been played out in spectacular fashion: from the original incubation of al-Qaida in the mujahideen war against the Soviet Union, to the spread of terror from western-occupied Afghanistan to Pakistan, to the strategic boost to Iran delivered by the US-British invasion of Iraq.

Once again there will be thousands and thousands of innocent human beings killed or their lives permanently shattered by the ruthless U.S. and its craven fellow bullying country cronies diabolically using the “War on Terror” as the “fig leaf” excuse to ramp up further violent corporate-driven profiteering imperialist invasions. Thousands and thousands of people in other countries will die along with our own betrayed troops being used as cannon fodder for corporate profits. Read below the fold...

letsgetitdone's picture

Good Luck Stopping Austerity With Incremental Platinum Coin Seigniorage!

Some have responded to the recent boomlet for using Platinum Coin Seigniorage (PCS) as a solution to the debt ceiling problem, by reacting to the ridicule visited upon PCS advocates by know-nothings like Heidi Moore of the Guardian and Read below the fold...

letsgetitdone's picture

The Great Austerity Swindle!

Our Congresspeople, corporate CEOs, tea partiers, most economists, Pete Peterson's minions, and even our President, tell us that we're running out of money; and that we can't keep running huge deficits, and increasing our national debt forever, because eventually, our creditors will just cease lending us our dollars back.

They also tell us that the Government can only raise money by either taxing or borrowing, and that when it comes to taxing, we can't tax “the job creators” very much or they'll go on strike and won't create any jobs because we'll have killed their incentive. So, here we are, we have to reduce our borrowing, and we can have hardly any tax increases on “the job creators,” so what's a fiscally responsible nation to do?

Well, they say, clearly “we” have to lower taxes on “the job creators” even more, raise them on the “unproductive” 47% or is it the 99%? And also, cut spending substantially on programs that provide benefits for the poor, the middle class, and even the 99%, so we can “. . . live within our means,” and remove the burden of excessive public debt on our grandchildren.

But, what if we say to these people, well, “the job creators” aren't making any jobs? That's a fact! They give all kinds of excuses, but the truth is that they have no sales, so they have no incentive to create any more jobs.

On the other hand, the more we lower their taxes, the more money they have sitting idle, and the more they have an incentive to use that money to invest in financial manipulation schemes rather than jobs. So, why not tax them at extremely high rates on net profits and provide them an incentive to lower their net profits by spending more of their gross profits on tax-deductible business expenses like employees and business expansion? Why won't high taxes on them do more to create jobs than lower taxes? Didn't we have far lower unemployment rates when marginal tax rates were sky-high, than we have now when they are a pittance on the wealthy? Read below the fold...

letsgetitdone's picture

Disconnect: High Value Platinum Coin Vs. Austerity!

A little disconnect: what President Obama, through Treasury and the Federal Reserve, really said last Saturday:

"We're running out of money because the Republican House may not allow us to float any more debt; so I took the Platinum Coin off the table just to ensure that we would!

Read below the fold...

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