The Terrifying Danger of the Trillion Dollar Coin
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January 9, 2013 - 8:08pm
No One is Talking about the Bottom Line with the Platinum Coin
Written by John Lounsbury
The bottom line is that the Trillion Dollar Coin removes profit the financial system makes on the interest payments to holders of the Treasuries - this reduces the cost to government (and its citizens) for operations. It would be logical to think that the financial system oligarchy would oppose loss of this profit.
To be fair, I have to say almost no one is talking about the basic tenet of the seigniorage proposal. Warren Mosler mentioned it this week, but it probably went right over the head of all but the most serious students of the platinum coin idea and serious academics specializing in money and banking (if any have considered the idea). The basic tenet is a significant threat to the global financial system, as I will explain in detail.
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