Like the gold standard pre Nixon, and suddenly we exited the gold market. Left a bunch of paper on the table. That was a one night hit to the commodities market, winners held physical gold and physical mining products, like oil. OK, I grant that one, that does indeed get us off zero bound.
But it took a meeting of the elders, implied consent in the senate, and a willingness for banks to get the new contract. That is a tough trade to put into a provable protocol. It still holds true, 'Whatever it takes', means double spending by Treasury. We should just ask,'On what terms is the double spending?'.This is like running a few plays, then kicking the can.
Here is a peg then run:
Buy a shitload of bitcoin, two trillion dollars of them. Then like holders of gold, the holders of Btc get all the yachts and islands. The Fed gets a checksum, is about all. Pretty asymmetric?
The point is, the 'whatever it takes', can be integer dollars rolled out, by law. But we need Treasury and the Senate agree without sending the House off to the Supremes. One and a half point inflation tax? OK, that sounds reasonable to me. The banks are in the contract with a quarter or sixth point fee. We are pegging to a double spend rate, then cutting out until contract renewal in ten to fifteen years. That is a peg then run that I can sign off on.
It is, by the way, a simple contract, easily verified by the Eth chain. The inflation in an input to the contract, and government carries the key around along with those nuclear buttons. But that authorization has a timeout, after which the contract inflates at the rate with market variation. So, the Eth miners control Treasury, if they can't find anything o do with the tax, its is handed out to 300 million Swift accounts. It will take all three House, Senate and Treasury to shut the thing off. Otherwise it runs to contract renewal.
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