At current interest rates, the Fed’s operating losses will impact the federal budget for years, requiring new tax revenues to offset the continuing loss of billions of dollars in the Fed’s former remittances to the US Treasury.
The difference between the trillion-dollar coin and the usual debt mechanism is simply the manner in which the taxpayers are exploited to pay for more government spending.
Remember Lady Justice, who wears a blindfold and holds the scales? She is a state creation, too, and when it comes to state wrongdoing, her thumb holds the scales down.
