A foolproof plan to balance the budget and stimulate the economy
As you may know, one of the ideas tossed around for dealing with the debt limit was to have the Treasury mint a trillion $ coin and then have the Fed "buy" it from them.
It is not well known, but totally true that Congress has already put the Fed on such a path since 2005 with an extra economic stimulus twist.
The Fed is mandated to buy new "presidential" dollar coins every year from the Treasury. It costs $0.30 to make them so Treasury is making bank. Plus, no one wants to use them so the Fed has to find/build storage facilities to house the unwanted coins.
Currently the Fed is holding over a billion of these coins in 28 different storage facilities.
People, all we need to do in these troubled times is double down on this excellent starter program. Make the Fed buy, say a trillion of these coins every year and store them.
That's $700 billion a year in new revenue and lots of construction jobs building new storage facilities. Plus those facilities will need managers, forklift operators, maintenance workers, security guards...
Hey, maybe the Treasury could make the coins even bigger!
I really don't see what could go wrong here.
Hat tip to 7im.