The Federal reserve doesn’t have 37,000,000,000,000 though. The Fed creates new money to buy treasuries and other assets, or in this hypothetical, a 37T coin. So that 37T is a liability, one that would destroy Fed credibility and cripple the USD fiat system. The liability wouldnt be on the M2 chart but it would still be new liquidity and would have extreme consequences for the system.
Discussion
Federal reserve notes are the liability of the Fed. The $37T coin is the asset.
Totally agree this destroys credibility. Hence why it makes more sense to puff up asset prices instead.
They’ve been pumping asset prices for 54 years and liabilities have outgrown tax receipts by a substantial amount. The same will continue.
The fiat system is essentially a controlled demolition. The only question is how long can they keep the scam going.
I think they can continue until revolution. Our standard of living is already far off the 1850-1950 trend. When standard of living reverts to pre-1950, people will start again with government.
I think they can continue until they blow up their scam and there is a viable alternative. Complete currency collapse has happened many times in the past and it’ll happen again. Well on the way (to collapse and to having a viable global alternative) already.
