The scheme that proposes the issuing of a trillion-dollar coin to be sold for digital money from the Federal Reserve System is dead. The Treasury won’t go along with it.
That’s really a shame. I was a big fan of the scheme.
It would have been legal.
It would have short-circuited the debate over the debt ceiling.
It would have forced the Federal Reserve to put a $1,500 coin on its books at $1 trillion. That would have made as much sense as keeping Fannie Mae and Freddie Mac IOUs at face value.
It would have let the public know that the Federal Reserve is sitting on a completely fictitious portfolio of fraudulent IOUs.
It would have informed voters that the Federal Reserve is an economically irrational institution that creates money out of nothing in order to buy assets that no one else wants at artificially high prices.
It would have reminded voters that the debate over the debt ceiling is a Punch and Judy show, that Congress always capitulates anyway.
It would have informed voters that the Federal Reserve is a legalized gang of counterfeiters.
It would have been seen as making no economic sense from the point of view of the national interest, which in fact accurately describes the Federal Reserve.
All in all, it was a noble suggestion that should have been taken seriously by everyone who accepts the theory of central banking. These people clearly do not have the courage of their convictions.