If we free the fiat banks, velocity rises and those are opportunities for fair taxes down the government chain. That guarantees the government debt.
If Congress wants a revision, say to raise the monopoly fiat tax, the fiat board is prepared to argue the threat to debt. That fee should be smaller than the Treasury inflation tax, by at least half, more like a third. Fiaters can almost prove that, and Congress is mostly stuck in a trinity and has to use the power of taxation.
But, between the House and Senate, that Treasury tax is limited in variation, as that is risk to the state capitals. The House generally wants is limited in mean as it is a nuisance tax for small states. The fiat board, during negotiations need to insist that Treasury tax is positive definite and three times large than the monopoly fee. The fiat board does not want to manage wobble hedges. A trinity, like any other. Always has been except now using spectral matching in markets we expose the trinity risks.
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