Mint the Coin
Combining the Treasury and the Federal Reserve seems to be popular. Congresswoman Rashida Tlaib wants the US Mint to mint platinum coins with a face value of $1 trillion and deposit them at the Federal Reserve and Janet Yellen is having a hearing to be Treasury Secretary today (1-19-2021).
Congresswoman Rashida Tlaib wants the $1 trillion coins to be deposited at the Federal Reserve so that they can then lend the money to poor people. It is known as the ABC Act and there is a website for it. It will result in hyperinflation.
The “About” portion of her website states,[1]
"1. Congress passes the Automatic BOOST to Communities Act (#ABCAct);
2. The Treasury Secretary directs the Mint to issue as many $1 trillion platinum coins as necessary to cover the initial and ongoing funding requirements of the emergency relief program established by the #ABCAct;
3. The Mint deposits the coins at the Federal Reserve, which credits the Mint's account at the Federal Reserve for their full face value;
4. The Treasury Secretary directs the Mint to transfer the newly acquired funds to the Treasury's general operating account at the Federal Reserve, at which point they become available to spend on the emergency relief program.”
Creating money lowers interest rates (credit expansion) and results in artificial booms (bubbles) that burst when the money creation stops.
“The wavelike movement affecting the economic system, the recurrence of periods of boom which are followed by periods of depression, is the unavoidable outcome of the attempts, repeated again and again, to lower the gross market rate of interest by means of credit expansion. There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” -Ludwig von Mises, Human Action (1949), page 570
In a Deutsche Bank survey published today, 90% of participants thought that there were numerous bubbles.[2]
“Nearly 90% of respondents in Deutsche Bank’s monthly investor survey said financial markets now had a number of price bubbles, with cryptocurrency Bitcoin and U.S. tech stocks top of the list.“
Once enough people make the connection between printing money and creating bubbles, they will lose confidence in the money.
“But then finally the masses wake up. They become suddenly aware of the fact that inflation is a deliberate policy and will go on endlessly. A breakdown occurs. The crack-up boom appears. Everybody is anxious to swap his money against ‘real’ goods, no matter whether he needs them or not, no matter how much money he has to pay for them. Within a very short time, within a few weeks or even days, the things which were used as money are no longer used as media of exchange. They become scrap paper. Nobody wants to give away anything against them.” -Ludwig von Mises, Human Action (1949), page 428.
The author is confident that combining the Federal Reserve and the Treasury will result in more inflation. Why else would former Federal Reserve Chairwoman Janet Yellen (2014-2018) be having her confirmation hearing today to be Biden’s Treasury Secretary?[3]
[1]https://mintthecoin.org/about/
[4]https://www.cnbc.com/video/2021/01/19/the-fed-and-treasury-are-giving-us-modern-monetary-theory-on-steroids-says-ed-yardeni.html The Ed Yardeni quote in the excerpt is at minute mark 1:15
