It is a bet. The bet is that we can extract long term capital by a bit of reorganization having short term costs.
Hence capital, government can provide it when government is has excess wobble. It comes in the form of a renewal of some longer term contract. The Law mandates this renewal, or bet. We have, over the founding, been better and better at smoothing over this bet.
Examples. Revenue sharing has been tried, entitlements rebalanced, and times of central bank independence and balanced budget. The bet is simple. We can take our share of these and government will agree to look again after some long series of coin tosses. And agree to a longer term contract on the Right to Coin, say 15 years. That is more Fed independence and more frequent expectation of government losses.
From the investor standpoint it is a currency tax, but bounded, and semi independent from Fed actions due to longer contract period. So it has a big 'but' attached to it. Namely what kind of 15 year period of independence will the Senate agree to. The best kind are congestion priced interest swaps, otherwise Congress is on its own, not even any hearings. There is likely a Due Process rule, similar to free entry and exit. It means the congestion pricing is anonymous.
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