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The Treasury could simply mint some trillion dollar coins, that is actually something they are authorized by law to do.
by voxic11 4y ago
The Treasury could simply mint some trillion dollar coins, that is actually something they are authorized by law to do.
- neilwilson 4y agoIt can mint coins with 1tn on the front. Whether the Fed has to give them $1tn of bank deposits for that coin is a different matter. Once you have an unbalanced budget of this type, then Treasury dollars become like Canadian dollars. They stop having a 1-to-1 relationship with Fed dollars. Banks have the power of discount, and maintaining a discount between the Fed and the Treasury is how monetary policy is alleged to work.