Daily Archives: January 21, 2013

Good Luck Stopping Austerity With Incremental Platinum Coin Seigniorage!

Posted on January 21, 2013 by Devin Smith | 144 comments

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 Matt O’Brien of the Atlantic, by proposing “smaller ball” PCS than the clearly inadequate Trillion Dollar Coin (TDC) itself. This post will focus on J. D. Alt’s interesting post which makes five points about the TDC debate as it was addressed on a recent Chris Hayes show.

Continue reading →

144 Comments

Posted in Joe Firestone

Tagged $60 T coin, austerity, Fiscal Policy, HVPCS, incrementalism, MMT, Modern Monetary Theory, platinum coin seigniorage, Trillion Dollar Coin

Our Leaders Are Mistaking the Modern Money System for a Fistful of Dollars – Part 2

Posted on January 21, 2013 by Devin Smith | 26 comments

By Michael Hoexter

An Adjustable Liquidity Source and Liquidity Sink

While it may seem obvious and a tautology to treat money as a “liquidity source”, sometimes, especially in an area of life where there are many unexamined assumptions, it makes sense to rehearse the obvious. “High-powered” state-issued money is treated within accounting as an individual’s or a businesses “most liquid” asset but anything that functions as money confers “liquidity” on any individual who possesses that instrument or thing. Liquidity means that that object or instrument can be readily traded for wished-for goods and services. This liquidity can extend to “money-objects” other than state issued currency but the latter is in most contexts the most liquid money technology that we have.

Continue reading →