The minimum interest charge we see is .15, shows up a lot, I call it the price of getting a trader out of bed. If a monopoly started taking excess the market would drop a rank and the monopolist should collect an additional .15%. The monopolist splits with the trader.
This is what the fiaters need to pay for their freedom. The smaller this number the larger the inflation tax, I am sure. But the greater the inflation tax the more trader risk. The fiaters would do well to boost this to a quarter point.
What about emergencies? Use the inflation tax for interest payment and borrow. Same as before. Won't we go boprke again? Yes, in about 15 yeas and we renegotiate. It is more then likely that the second time around people will see that a lower inflation tax yields better results.
There is an optimum inflation tax because the fiscal system is closed on taxes (Except for a few land fees). That tax must be bound to a market variance within the Swamp as it has been around since Hamilton. But it is dependent on the technology in the government value chain.
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