openourminds-deactivated2013022 asked: trillion dollar coin: pay banks back: reinstate sovereign monetary system; banks stop loaning to state, state loans to banks now. problem beginning to be solved.
I don’t think THE Coin is to become a loaning agent from State to Bank. It’s the opposite, actually. THE Coin becomes an asset which we (The Federal Government) will use to leverage with the Bank (The Federal Reserve) so that the Bank will loan us more money so that we can continue to spend.
This is the exact opposite of what we should be doing. In fact, not only are we now creating money out of thin air, we would also start creating assets out of thin air.
You see, if THE Coin isn’t actually made of a trillion dollars in platinum, it is just a fiat currency, but we aren’t using it as such. instead, we are using it as collateral or leverage to obtain another fiat currency, US Dollars, from the Federal Reserve.
Anyway, I haven’t yet looked into THE Coin with much detail because I’ve been dismissive of both the idea and the possibility that our government is that stupid or irresponsible. Minting THE Coin would be a public admittance that our currency and our system are completely arbitrary and our money is valueless and our system is imaginary.
Maybe I should look into the idea more because you never know just how crazy politicians are, but as far as I’ve read, we’d mint THE Coin and send it to the Fed as a deposit for more federal liquidity.
I may be completely wrong on this but as far as I know, that’s how it would work out.