Tag Archives: High Value Platinum Coin Seigniorage

A Plague on All Your Budgets

Posted on March 26, 2013 by Devin Smith | 47 comments

Domestic Private Balance + Domestic Government Balance + Foreign Balance = 0

is an accounting identity that provides a focus for macroeconomic analysis, explanation, and prediction by economists applying the Modern Money Theory (MMT) approach. It leads to a very critical line of thinking about the budget deficit projections produced for our consumption by the Congressional Progressive Caucus (CPC), Congressional Budget Office (CBO), the House, and the Senate. The US has recently had a sharp decline in its balance of trade deficit. It now stands at about 3% of GDP; which means that the rest of the world has a surplus, a balance of +3% of US GDP in its annual trade with the United States. Continue reading →

47 Comments

Posted in Joe Firestone

Tagged #PCS, 2013 budgets, CBO, CPC, Fiscal Policy, High Value Platinum Coin Seigniorage, House budget, MMT, paul ryan, Senate budget, Trillion Dollar Coin

Is It Really About “Dysfunctional” Partisanship?

Posted on March 9, 2013 by Devin Smith | 24 comments

By Joe Firestone

The popular narrative in Washington, DC these days among the MSM pundits is that the Congress is “dysfunctional” in the sense that it is very difficult for it to pass a budget and rise above periodic “fiscal” “debt” and “deficit” crises. This difficulty is attributed to the failure of our representatives to rise above their party interests and to accept compromises proposed by “adults” such as the President, which would, it’s claimed, resolve our long term “fiscal sustainability”/”fiscal responsibility” problem through a “balanced” long-term $4 Trillion deficit reduction plan.

Continue reading →

24 Comments

Posted in Joe Firestone

Tagged #PCS, debt ceiling, filibuster, Fiscal Policy, High Value Platinum Coin Seigniorage, HVPCS, MMT, partisanship, Trillion Dollar Coin

Framing Platinum Coin Seigniorage: A Working Document

Posted on February 5, 2013 by Devin Smith | 9 comments

By Joe Firestone

Jack Foster proposed a framing document for High Value Platinum Coin Seigniorage, in a recent comment he made on one of my posts. In response, I posted a six-part blog series to accommodate readers who prefer the blog format.

Continue reading →

9 Comments

Posted in Joe Firestone

Tagged #PCS, #TDC, $60 T coin, austerity, debt ceiling, Fiscal Policy, game-changing PCS, High Value Platinum Coin Seigniorage, HVPCS, MMT, modern money theory, platinum coin seigniorage, Trillion Dollar Coin

Framing Platinum Coin Seigniorage: Part Six, More Political/Economic Objections

Posted on February 4, 2013 by Devin Smith | 11 comments

By Joe Firestone

This series provides a framing document for Platinum Coin Seigniorage (PCS). In the five 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. Continue reading →

11 Comments

Posted in Joe Firestone

Tagged #PCS, #TDC, $60 T coin, beowulf, debt ceiling, Fiscal Policy, High Value Platinum Coin Seigniorage, HVPCS, MMT, platinum coin seigniorage, Trillion Dollar Coin

Framing Platinum Coin Seigniorage: Part Five, Institutional Objections

Posted on February 3, 2013 by Devin Smith | 8 comments

By Joe Firestone

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.

Continue reading →

8 Comments

Posted in Joe Firestone

Tagged #PCS, #TDC, $60 T coin, beowulf, debt ceiling, Ezra Klein, Fiscal Policy, High Value Platinum Coin Seigniorage, HVPCS, John Lounsbury, MMT, platinum coin seigniorage, Trillion Dollar Coin, warren mosler

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

Posted on February 2, 2013 by Devin Smith | 13 comments

By Joe Firestone

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.

Continue reading →

13 Comments

Posted in Joe Firestone

Tagged #PCS, #TDC, $60 T coin, beowulf, Black Swans, debt ceiling, Fiscal Policy, High Value Platinum Coin Seigniorage, HVPCS, MMT, modern money theory, Nassim Nicholas Taleb, platinum coin seigniorage, Trillion Dollar Coin

Framing Platinum Coin Seigniorage: Part Three, Political Objections

Posted on February 1, 2013 by Devin Smith | 5 comments

By Joe Firestone

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. 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.

Continue reading →

5 Comments

Posted in Joe Firestone

Tagged #PCS, #TDC, $60 T coin, beowulf, debt ceiling, Ezra kelin, Fiscal Policy, High Value Platinum Coin Seigniorage, HVPCS, MMT, modern money theory, platinum coin seigniorage, Trillion Dollar Coin

Framing Platinum Coin Seigniorage: Part Two, Legal Objections

Posted on February 1, 2013 by Devin Smith | 8 comments

By Joe Firestone

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.

Continue reading →

8 Comments

Posted in Joe Firestone

Tagged #PCS, #TDC, $60 T coin, beowulf, debt ceiling, Dorf On Law, Fiscal Policy, High Value Platinum Coin Seigniorage, HVPCS, MMT, modern money theory, Philip Diehl, platinum coin seigniorage, Trillion Dollar Coin

Framing Platinum Coin Seigniorage: Part One, Basics

Posted on January 31, 2013 by Devin Smith | 58 comments

By Joe Firestone

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? The short answer is that Congress in 1913, constrained the Executive Branch from creating currency or bank reserves, delegated its power to do that to the Federal Reserve System, and never looked back when we went off the gold standard in 1971, even though this removed the danger of money-creation outrunning gold reserves, and also created a new monetary system based on fiat currency.

Continue reading →