Friday, December 4, 2020

The dynamics of revenue sharing and double spending

 Legislature would want to capture most of that double spending in revenue sharing.  If Treasury uses its near term quota on a government blunder, then the double spending goes down for a few quarters.

Getting a big revenue sharing budget and having large government blunders makes high interest charges because we we have liberated the fiats.  The priority of the legislature is to tax and revenue share with fewer government blunders.  

Remember, the greatest effect of a government blunder is a skew in gain across the senate and house. So that revenue sharing amount gets modified by the sharing ratio. The double spending amount is a positive, prenegotiated over a 15 year period. If it is not spent for blunders or revenue sharing then it automatically pays off debt.

The total net of all this is a fairly large productivity gain in total government. The markets are placed squarely where the congestion point happen. The sample points allow agents to adjust long term bets appropriately.

Ask the pros: Yellen, Powell, Friedman.  Ask the finance, ask the bankers.  This plan makes a lot of sense. We can mandate inflation, by Law, it is a contractual obligation. But the gain from revenue sharing and liberating Swift more than covers it. A great tool to hand back to Treasury, they have the power, need, and utility for the double spending. This is good, a sensible trade and makes for a very robust dollar banking system, generating a fixed, and fair, monopoly fee.

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