PAY DOWN OUR NATIONAL DEBT !
Pursuant to Title 31 of The United States Code, Sec. 5112 (k)
Policy To Pay Down The National Debt
Pursuant to Title 31 of the United States Code,
section 5112 (k).
Members of Congress,
We can solve the debt-ceiling issue via Proof Platinum Coin Seigniorage by presenting the following as a new policy. Some supporters, instinctively claim, that Coin Seigniorage may or would be inflationary, even highly inflationary or hyperinflationary. This is not true!
Let?s begin by noting the most basic point in the proposal ,a platinum coin or coins would be minted and deposited in the US Mint?s Public Enterprise Fund at the Federal Reserve, where it would be credited for its full legal tender face value by the Federal Reserve. The Treasury would then ?sweep? the profits (the difference between the cost to the Mint of producing the coin (s) and face value of the coin(s)) into the Treasury General Account at the Federal Reserve. The face value of the coin(s) can be whatever the Mint chooses to stamp on it (them); there is no requirement that the coin(s) weight be related to the face value. So, the coin(s) could be One Trillion or more, or less if preferred.
Coin Seigniorage, using very large face value coins, is not inflationary. Here are the reasons:
The coin(s) would never circulate among the public. It (they) would always remain on the asset side of the Federal Reserve balance sheet, and would always rest in a vault at the Federal Reserve. Since the platinum coin(s) never circulate(s), minting and depositing the coins at the Federal Reserve cannot possibly be inflationary.
Depositing the coin into the Treasury?s account at the Federal Reserve will provide the Treasury with an account balance nearly equal to the stamped value of the coin(s), but this is not inflationary, either, for the following reasons.
Coin Seigniorage and Government Spending
1. The Treasury can never legally spend any more than what has been appropriated by Congress. Congress still retains the ?power of the purse,? actually the ?power of the purse strings.? So, the coin(s) will never add to the government?s spending beyond what has been passed by both houses and signed by the President. There will be no inflation resulting from additional spending, due to coin seigniorage itself, since there won?t be any spending on goods and services not appropriated by Congress. So, as long as Congress doesn?t appropriate spending great enough to be inflationary, there?s no inflation problem, regardless of whether we use coin seigniorage to make the debt ceiling irrelevant.
Coin Seigniorage to Retire Debt Held by the Federal Reserve
2. The balances in the Treasury?s account could simply be used to retire the debt owed to the Federal Reserve. Lets say the debt is $1.635 trillion. So, the Mint stamps a coin or coins worth $1.635 trillion, the profits (the difference between the cost of minting and the face value of the coin) end up in the Treasury?s account, and the Treasury then pays down the debt held by the Federal Re
Pursuant to Title 31 of the United States Code,
section 5112 (k).
Members of Congress,
We can solve the debt-ceiling issue via Proof Platinum Coin Seigniorage by presenting the following as a new policy. Some supporters, instinctively claim, that Coin Seigniorage may or would be inflationary, even highly inflationary or hyperinflationary. This is not true!
Let?s begin by noting the most basic point in the proposal ,a platinum coin or coins would be minted and deposited in the US Mint?s Public Enterprise Fund at the Federal Reserve, where it would be credited for its full legal tender face value by the Federal Reserve. The Treasury would then ?sweep? the profits (the difference between the cost to the Mint of producing the coin (s) and face value of the coin(s)) into the Treasury General Account at the Federal Reserve. The face value of the coin(s) can be whatever the Mint chooses to stamp on it (them); there is no requirement that the coin(s) weight be related to the face value. So, the coin(s) could be One Trillion or more, or less if preferred.
Coin Seigniorage, using very large face value coins, is not inflationary. Here are the reasons:
The coin(s) would never circulate among the public. It (they) would always remain on the asset side of the Federal Reserve balance sheet, and would always rest in a vault at the Federal Reserve. Since the platinum coin(s) never circulate(s), minting and depositing the coins at the Federal Reserve cannot possibly be inflationary.
Depositing the coin into the Treasury?s account at the Federal Reserve will provide the Treasury with an account balance nearly equal to the stamped value of the coin(s), but this is not inflationary, either, for the following reasons.
Coin Seigniorage and Government Spending
1. The Treasury can never legally spend any more than what has been appropriated by Congress. Congress still retains the ?power of the purse,? actually the ?power of the purse strings.? So, the coin(s) will never add to the government?s spending beyond what has been passed by both houses and signed by the President. There will be no inflation resulting from additional spending, due to coin seigniorage itself, since there won?t be any spending on goods and services not appropriated by Congress. So, as long as Congress doesn?t appropriate spending great enough to be inflationary, there?s no inflation problem, regardless of whether we use coin seigniorage to make the debt ceiling irrelevant.
Coin Seigniorage to Retire Debt Held by the Federal Reserve
2. The balances in the Treasury?s account could simply be used to retire the debt owed to the Federal Reserve. Lets say the debt is $1.635 trillion. So, the Mint stamps a coin or coins worth $1.635 trillion, the profits (the difference between the cost of minting and the face value of the coin) end up in the Treasury?s account, and the Treasury then pays down the debt held by the Federal Re
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