The three pillars of the monetary base

 I like my new theory, for a while, it sounds fundamental.

The three pillars being, sanctity, coinage and taxation. No two of these paired can eliminate the third, they have to balance.

Fundamental because we can see the float problem. The Fed, with market distortion, will stress coinage power and legislation still wants taxing power.  This is out of balance and the Fed is building up float over the recession cycles looking to distribute this over the three. It is a closed system in that there is no other monetary base for the tax dollar.  Now the market that guarantees sanctity is stressed by coinage power.  We see another conflict, distorting bond markets reduces velocity and makes tax collection difficult

There is room for the three. The key is to know the coinage tax has been blow 2% for a long time, and puts a limit on sudden defaults. We are too smart to go through that period of  pricing chaos. There is a coinage overall tax we can live with, clearly below 2% some hope. But we can avoid that Nixon turbulence.