Jerome Powell will not accept your stupid platinum coin
Tiana Lowe
Two of the leading theorists behind the dumbest economic fantasy since
Magical
Modern Monetary Theory described to the Washington Post just how the Treasury could mint a trillion-dollar coin to bypass congressional gridlock over the nation’s borrowing limit. Willamette University law professor Rohan Grey told the Washington Post that in the likely case that the Supreme Court strikes down the Treasury Department’s ability to mint a platinum coin worth $1 trillion, the coin conspiracy theorists would simply “ignore SCOTUS.”
“I know that sounds extreme but if they side with [Rep. Matt Gaetz (R-FL)] et al then the choice is to ignore them or default,” Grey said. “Demand fed accept coin. Send troops to the fed.”
HOW DID BIDEN HIDE THE DOCUMENT DEBACLE FOR 68 DAYS?
Monetary morons have always hidden behind other people’s money to conceal their ultimate goal: inflate away the value of your savings to fund the state’s usurpation of free markets. At least now, the coin crew is finally admitting out loud that every part of its plan requires an assault on legal norms.
Luckily for the republic, Federal Reserve Chairman Jerome Powell will never accept a trillion-dollar coin, and Treasury Secretary Janet Yellen knows this. Over the weekend, Yellen said that her successor at the Federal Reserve would never accept such seigniorage and that, legally, “there’s no requirement on the part of the Fed” to do so.
For months now, Powell has been warning Congress that the Fed will no longer finance our highest debt-to-GDP ratio since World War II. Despite markets deluding themselves otherwise, Powell is unlikely to pivot away from interest rates north of 5% this year, and even in the long run, the Fed anticipates that interest rates will remain well above any point from the Great Recession until 2021. The coin chimera is just another way for Congress to believe that the Fed can or will save democracy from itself.
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