left right politics showbiz tech invest good life gossip fun hot
Mother Jones Hot Air Huffpo Variety Engadget Seeking Alpha Lifehacker TheSuperficial Daily Beast reddit
Daily Kos Michelle Malkin Politico Billboard Boing Boing TheBigPicture Luxuo TMZ.com Fark BuzzFeed
ThinkProgress Breitbart First Read CNN Showbiz Gizmodo FT Alphaville Joystiq Perez Hilton 4chan memorandum
Crooks+Liars Power Line CNN ticker E! Online Techcrunch Josh Brown Kotaku gamer Bastardly Post Secret Techmeme
TalkngPtsMemo Ameri..Thinker Swampland TV Guide Ars Technica 24/7 Wall St. TreeHugger Egotastic hascheezburgr Drudge
The Raw Story NewsBusters NYT-politics Ent. News Mashable yahoo-fin Consumerist PinkIsTheNew dooce digg
Wonkette Wizbang 538 popsugar Google blog DealBook lifehack.org CelebrityBaby Someth'nAwful trends
Atrios Taki Magazine WashWhisprs DeadlnHllywd Read/Write Jeff Matthews 43folders GoFugYourself Neatorama PSFK
Firedoglake Epoch Times The Fix MSN Ent. OReilly Radar PhilsStockWorld Autoblog Page Six Cool Hunter BBC
Young Turks IMAO Capital Gains Rot'nTomatoes GigaOM Daily Rec'ng Deadspin BestWeekEver stereogum NYT-trending
Americablog AceOfSpades Open Secrets Ringer-movies ProBlogger Zero Hedge DownloadSqd Dlisted CuteOverload media eye
Politicususa Redstate WikiLeaks law Cool Tools Bespoke MediaZone PopSugar Dilbert blog TVNewser
CounterPunch RightWingNews econ law.alltop M. Brownlee BtwTheHedges Deviant ArtHollyw'dTuna gapingvoid BuzzMachine
TalkLeft Patterico EconLog Volokh Consp. Apple Blog Minyanville Gothamist x17online DailyGrail MediaGazer
Feministing Townhall.com Freakonomics Legal Insurrec.. Valleywag Fast Money Curbed DailyBlabber Prof. Hex Steve Rubel
PolitAnimal OutsideBeltwy CrookedTimbr Conglomerate mozillaZine RealClearMkts FabSugar Gawker OvrheardinNY MediaBlgNRO
Truthdig Moonbattery MarginalRevo SportsLawBlog Smashing W$J Mktbeat Gridskipper Radar Last.fm Threat Level
Alternet RealClearPoli crime W$J Law BlogTechdirt AbnormalRtrns Material Defamer kottke.org Seth's blog
Media Matters Instapundit CrimeblogsBalkinizationMAKE RandomRoger Sartorialist Jossip PumpkinChuck mediamatters
The Nation Hugh Hewitt All Crime Credit Slips SrchEngLand Stock Advisors DrinknMadeEz Just Jared Maps Mania Newshounds
Maddow Blog PJ Media Smoking Gun FindLaw VentureBeat Slope of Hope Mark Cuban Celebitchy CollegeHumor FAIR

Saturday, December 15, 2012

Neutering Option for Ben Bernanke and the Federal Reserve

Thinking Big: Give the US Government a $60 Trillion Blank Check

Joe Firestone writing at New Economic Perspectives wants the MMT's (Modern Monetary Theorists) and their brethren to think bigger. He is thinking outside of the penny jar that is currently U.S. monetary policy.

He asks, why go for a measly $5 or $6 trillion using Platinum Coin Seigniorage (PCS). Why not create a massive $60 trillion purse for the US Government that will totally rewrite the rules of monetary policy in this country. This plan will neuter the Federal Reserve.

Anything that will take Ben Bernanke off his high and mighty throne will get one's attention. However, turning the power to create money over to Congress and the President sounds very scary. But, let's explore the idea.

First, some background, TJN reviewed the history of the Platinum Coin Seigniorage option, in a post last July entitled, "Debt Watch / Coin Trick: the Trillion Dollar Coin."

Ellen Brown first suggested the idea in her book back in 2007.

Ellen Brown:
WebofDebt.com: The Market Has Spoken: Austerity Is Bad for Business [Aug 7, 2011] --

Another alternative was suggested in my book Web of Debt in 2007: the government could simply mint some trillion dollar coins. Congress has the Constitutional power to “coin money,” and no limit is put on the value of the coins it creates, as was pointed out by a chairman of the House Coinage Subcommittee in the 1980s..
Joe Firestone writing yesterday updates the status of the Platinum Coin Seigniorage (PCS) discussion and then goes into his expansive view of implementing it.

Joe Firestone / New Economic Perspectives:
New MSM Trillion Dollar Coin Wave: Here’s The Big Story --
The one thing that jumps out at you when reading the mainstream posts of the past week-and-a-half bringing Platinum Coin Seigniorage (PCS) into the forefront of attention again, for the first time since last year’s debt ceiling crisis, is that every mainstream blogger or commentator is telling a story about minting a Trillion Dollar Coin (TDC), or a few trillion dollar coins as an option the President can either use or not to get around the debt ceiling. But no one is telling us the much bigger story of the enormously increased authority to cause the creation of fiat money, delegated to the Executive Branch by the Congress in the 1996 legislation enabling PCS. And no one is telling us what the possible implications of this change are for our political and economic systems.

I’ve reviewed these posts, as well as a cable segment,  in the four earlier installments of this series. The installments, beginning with this one, are here. The posts and the cable segment are by: PethokoukisWiesenthal, Carney, Drum, Yglesias,  Yglesias, Harry BradfordBrad Plumer and Chris Hayes...

CS Creates a Great Crack in Gold Standard Constraints and Austerity Justifications
The big story about Platinum Coin Seigniorage is not the Trillion Dollar Coin and its possible implications for solving the debt ceiling crisis, as the mainstream has been telling us. Instead it is the great crack it creates in the wall of gold standard-based constraints still hanging over our politics and economics, and the increased fiscal and policy space this gives us to use to solve our various national problems. It is the authority the Executive Branch of Government now has to break through these constraints, and begin to unify the financial functions of government behind the public purpose...

The mainstream bloggers and commentators told the PCS story solely in terms of the theoretical availability of coins with face values in the low trillions and their potential impact on the debt ceiling conflict. But they never considered or examined a more aggressive use of PCS to change the US financial system substantially, by freeing the Treasury from its gold standard chains and the political system from fiscal policy alternatives focused first  and last on their fiscal impact on deficits, debts, and misplaced solvency fears, rather than on full employment, price stability, and other public purposes. They never considered a range of PCS options and their possible wide range of impacts on economics, politics, and the federal financial system, as well as on the debt ceiling conflict...

As I’ve said in another place, a $60 T solution would allow Treasury to harness the authority of the Fed to fill the TGA (the public purse), so that Treasury need never issue debt again for the next 15 – 20 years, ample time to reconsider the unwise and damaging decision made by Congress in gold standard days to make the Fed independent of the Executive Branch and unaccountable to the public. That solution would also make the debt ceiling issue a dead letter, to the point where that legislation could easily be repealed over the next few years, since no one would expect to use it again...
Joe says the plan will not be inflationary. That is the nub of the whole issue.
I’ll consider the inflation objection at length in my next post.

However it’s also already been considered and evaluated in past writings by myself, and also by Scott Fullwiler. The bottom line, however, is that debt repayment won’t be inflationary; and that deficit spending using seigniorage, also won’t be inflationary in itself.
A President would have to have Rooseveltian cojones to implement this platinum coin option. Does Obama? Let the discussion continue..

Here is Joe Firestone's explanation on why using Platinum Coin Seigniorage to mint trillions of dollars to break the back of the Federal Reserve will not be inflationary:

New Economic Perspectives:
Platinum Coin Seigniorage, Issuing Debt, Keystroking Deficit Spending, and Inflation

Thursday, December 13, 2012


45 years ago - Otis Redding's final performance on ABC affiliate WEWS, December 9, 1967. The next day, he died in a plane crash. via AlyssaNewcomb

Wednesday, December 5, 2012

Stocking Suffer

Dear Santa:

Here is a good one for this year's X-Mas list, a nice little flat screen for the backyard.

The C'Seed 201 TV has a 201-inch (5.11m) 16:9 LED screen. It only costs around $650,000 (€500,000) and it was designed by Porsche Design Studio

The 201-inch screen folds up into seven sections that form a slim, black obelisk perched on top of a rotating plinth. This pillar lurks underground in a concrete silo, emerging at the press of a button and unfolding like a butterfly on the first day of spring. The C'Seed can rotate 270-degrees and it can also sense if is too windy and duck back into its underground burrow.