This was posted on Naked Capitalism. I view the poster, Jack Hepler as a guy like me looking at the situation like Darwin trying, struggling with determination to make sense out of what he sees. See his post and all the various comments it elicited for some interesting reading displaying a variety of viewpoints and ideas.
I posted this comment:
Public debt can’t be wiped out by making more (debt) money. Public
Debt and private savings are in equal balance. Minus amount equal to
plus amount. There is another way to balance: Plus equals Plus. A
single $16 trillion platinum coin on the government public side = the
sum of all the individual single dollars on the private savings side. It
is a balance just like $16 debt eqauls $16 asset. $16 coin = $16
single dollars. The whole = the sum of its parts. Let it be and it is.
But wait, the $16 trillion coin also equals all the dollars due to
the holders of the National Debt. But the holders of the ND are due
that money over time, plus the interest I guess. In any event over
time. Meanwhile the $16 trillion coin equals the present private asset
savings upon implementation establishment. Even if done today there
would be no change impact on the private asset revolving fund savings
side?
The National Debt is a revolving debt fund. We must pay it off as
due over time. If no new debt must be issued because todays private
savings (also a revolving fund) has been balanced by the $16 trillion
coin then we do not have to sell more debt to replace old debt as it is
retired over time. It becomes a self liquidating revolving fund.
Where does the money come from to retire the existing National Debt revolving debt fund over time if not from selling more debt?
(insert answer here)
The paid off ND investors can put their money anywhere they want.
Sounds like a boost to free private enterprise investment to me. Would
it drive scams or better, safer investments? China (as well as everyone
else holding the ND) has to do something with its $1 trillion but only
as that trillion is paid off over how many years? They will find
another (safe?) place paying something in return? The market maybe?
The common public good in some way if it benefits them?
Any validity to these ideas about the coin?
The coin: Something about E pluribus unum appeals to me. It sound
American. Like many from one or one from many. Quibble about semantics
but the idea is the same. The many combine to one. One serves the
many. Did we invent that idea or just apply it?
$16 trillion digital dollars private savings from (but equal to) one
$16 trillion public coin. E pluribus unum used to be the defacto motto
of the USA until the official one “In God We Trust” was established by
law in 1956. The coin has two sides, one for each motto or choice of
core value statement by either political party. Or two advertising
spaces to the highest bidder.
If people must cling to the idea that debt must be a part of money
then put the word “Debt” on one side of the coin and “Asset” on the
other. One day when the National Debt is gone through retirement
without replacement then a change can be made on the “Debt” side of the
coin.
Like: “Paid in Full” or: “Its All Our Money Now” Funny thing: It is
all ours now. That is why we can make the $16 trillion coin. It is our
soveriegn right. Maybe all we need is the will of the people, or some
kind of government to express that will.
We could have a “National Debt Countdown Clock” and in some future
year celebrate two “New Years”. Two new beginnings with a clean slate
and hope for a better future in the same year.
There could be a futures market in when that day and time would be.
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