The coin has a deposit problem. There is nothing that says the Fed has to create deposits 1-for-1. If you have an unbalanced budget then Treasury dollars deposi

The coin has a deposit problem. There is nothing that says the Fed has to create deposits 1-for-1. If you have an unbalanced budget then Treasury dollars deposited at the Fed become like Canadian dollars deposited at the Fed. They start to attract a discount. Since that's how monetary policy is alleged to work (Treasury has to offer the world a discount to get them to part with their 'scarce' money), an antagonistic Fed (or Supreme Court) could easily go down that road. The other alternative interpretation is that Congress has ordered the Fed to pay out a certain amount from the TGA, ordered the IRS to collect a certain amount into the TGA and ordered the Treasury to drain reserves into the TGA to a set amount. Those orders don't add up, therefore the result will be a carried forward balancing item at the Fed. In other words any ability the Fed has to say 'no' to a Treasury payment order either doesn't exist in law, or has been repealed under the doctrine of implied repeal. It also avoids the discount argument, and the issued argument. That concept blows the mind of those who still think money is about shiny coins in bags, rather than a function of accounting entries in a banking system.