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Richard Smith's avatar

Joel, My understanding is a town (or city) can have its own currency as legal tender. So if each town has its own currency to trade for goods and services in its town, than we pay the taxes with it and Washington D.C. and state capitol politicians or the I.R.S.has to come to our town, and buy our goods and services and than sell those to cash it out in dollars elsewhere. Finally the politicians would have a purpose, instead of sitting around complaining about each other.

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Don Hrehirchek's avatar

Certainly a different perspective. If it is so why has it not been done?

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andy's avatar

The line is a leash with a noose knot on the other end. These faithful executioners be gettin' spoils-rich.

https://www.goodreads.com/book/show/15793575-the-faithful-executioner

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Mackinac's avatar

The Fed's overrun on renovation costs feels like the same old story, so old even commenting on it seems absurd. I can't imagine anything the government is on or below budget.

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Dart Driver's avatar

Gordon - what would be the effect of suspending interest payments on debt held by the Fed? If they can buy with dollars create from thin air, why not have those interest payment released back into thin air?

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Clem Devine's avatar

If the Treasury defaulted on its debt the Fed would go broke, who would then purchase the Treasuries debt?

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Dart Driver's avatar

The Fed can't go broke by definition. In this case, they simply would not be get any fiat from the Treasury. If they sold the debt to someone else , the interest payments to the new owner would resume. Just no extra juice for the Federal Reserve's slush fund to behave as a legitimate organization.

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