You have to put it in a legislated account

Mnuchin Plans to Put $455 Billion Beyond Yellen’s Easy Reach

Mr.Munchkin, you can do nothing except leave it to drift back into reserve balances. 

You have no legislative authority, thus no place to hide it until you get a budget.  We are not making budgets with you anymore.  This guy is bonehead. The opposition will create a virtual account with 455 billion, called the 'Munchkin is an idiot account'. Perfectly legal, and it owns all of those tiny little miniscule accounts pumped by the Munchkin without legal authority.  

This is how the Munchkin made money, trading on some government induced hedge and using insider information.  None of these Trump boneheads are on the side of Due Process banking.

A Treasury spokesperson confirmed a Bloomberg report saying that the reclaimed money will be put into the Treasury's General Fund, but denied that moving it out of the Exchange Stabilization Fund would put the funds off limits.

The funds are tied to expiring Fed lending programs for mid-size businesses, municipal bond issuers and other borrowers, the spokesperson said, adding that any new use, including renewing the facilities, would require congressional approval.

Yellen will give it back to the lending program where it will, again, sit on reserve balances, then it expires, and is returned to reserve balances.

There is now debt backing up that money, so by putting that money in reserve balances, that money avoids taxing itself to pay its own debt costs, a perfect tax dodge, except we don't tax Treasury. One solution is take that money and buy back some debt. Then the money self cancels, get deleted from the chain.

Munchkin is an idiot, and here is a rule:

Money in a treasury account that cannot be allocated by legislation is money that stays in the treasury account. There is no authority, nowhere, in double entry accounting,that can move it from the Treasury account except our friends in the chambers. 

The part of the sequence in which we have huge tax battles

Rich Americans Scrambling To Buy 'Golden Passports' To Second Country

The global economy is a snake of super wealthy avoiding taxes. They wind around, moving themselves and capital to minimize unexpected tax jolts.

They and the tax agents have started the cat and mouse, and it goes on for at least a quarter. maybe two. It is a higher energy level events because it requires coordination with California, which has opposite spin in the Pauli sense.  Last time it all boiled down to an income tax referendum in California, followed by last hour tax deal in the Swamp.  We have to do that, at a minimum, but it is now complicated by union battles and Swift banker rebellion. Made worse by the loss of so many tax hikes this election.

Local politicians want those taxes

 

Via ZH.

But local users and suppliers are notorious tax dodgers. 

However, it is a nice export market for California. And fairly harmless. Fresno grows good stuff.

Why not Assange, Snowden, Stone, and any I may have forgotten.

 Trump tells allies he plans to pardon Michael Flynn: report

The same group that elected a beauty queen is now dying of covid

 

Almost as dumb as Texans.

Faking it with Janet

 

 

This is Selgin's chart trying t make out Janet's rate decisions.

My chart for this period. I have many other charts for each period back to 1980 and the result is always the same. The Fed follows the one year.

This is the chart Janet worries. That peak in remits came in 2015, and she wanted that to drop, not rise.  This is Selgin's claim, normalization. Her only choice to normalize was to raise the target to match the one year, that is always the only choice, there has never been another choice.

Almost everything else we hear is some obscure chart to match some obscure theory and we miss forest for trees.

Then he will love the Hunter dossier

 Biden NSA Pick Called Steele Dossier 'Perfectly Appropriate'

Coming to a news room near you.

Cops lose that union battle

Seattle City Council cuts police department budget nearly 17 percent

A win for social workers in this case.

A split in the Swift block chain

 OCC fights de-banking. Fed moves to climate.

The OCC in favor of Due Process banking, the Fed want monetary fiscal union. The Due Process bankers want connected into sandbox. Very few of the pros are really clued into the process. 

This may be a first, a real bona fide bankers strike by the Due Process bankers. I would expect these rebel bankers to open virtual offices in tax havens where they can operate in sandbox.

We need  name for monetary/fiscal Godotism. I suggest montefisco banking.

Fellow deflationist

Inflation: A Misguided Fear

Dave Beckworth's main claim is the Fed expanding its S/L facilities to other central banks, short cutting the Swift network. Thus the more liquid banking creates more demand for US dominated reserve assets. And that leads to a seigniorage, tax increase. Boils down to congestion pricing.

But the dollar index is now down to pre-covid levels. The international rush to safety has collapsed and the seigniorge tax remains high.  The rush to safety is apparent in deleveraging consumers who want to buildup deposits in response to the second consecutive crash. But they too will find other tax free investments over time. But the seigniorage tax remains.

We are still deflationary, the cause is still the siegniorge tax. That tax remains for 15 years, the time needed for the Swamp to rollover its past debt, now costing over 2% per year. The siegniorage tax should peak at about 1.5% of the economy. 

The question is, how long will we tolerate a 1.5% banking tax. Dodging taxes is a major law of economics. This is what worries Powell and Yellen. The Swift banks have to sit out half their market for 15 years, and will not survive the sandbox taking all that Swift share.

On the political side, it is soon that Yglesias and Drum discover this regressive flat tax is not on the talking points. And this is a 15 year, non legislated,  flat tax generated by an unelected group. At some point even the Alt-Right could get  clue. Then we have internal party differences with the centers of both parties liking the idea of a tax they do not need to vote on. In between is the Swift bankers union.