by Yglesias out with another idea today:New debt ceiling workaround just dropped — an idea for folks who find the platinum coin too silly. https://t.co/COhytbTHgv— Matthew Yglesias (@mattyglesias) January 11, 2023 I guess: With policy rate at 5%; they sell a 1 year 10 face value with a coupon of 95 then people would pay 100 and get redeemed for 10... they would make the 5%... iow they would pay 100, get coupon for 95 then get back 10 at redemption in 1 year... pay 100 and get back 105 within a year...USD savers would have their USD savings in the Treasury General Account at the Fed instead of in Treasury Securities accounts at the Fed… TGA account would probably maintain a VERY high balance…
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Yglesias out with another idea today:
New debt ceiling workaround just dropped — an idea for folks who find the platinum coin too silly. https://t.co/COhytbTHgv
— Matthew Yglesias (@mattyglesias) January 11, 2023
I guess: With policy rate at 5%; they sell a 1 year 10 face value with a coupon of 95 then people would pay 100 and get redeemed for 10... they would make the 5%... iow they would pay 100, get coupon for 95 then get back 10 at redemption in 1 year... pay 100 and get back 105 within a year...
USD savers would have their USD savings in the Treasury General Account at the Fed instead of in Treasury Securities accounts at the Fed… TGA account would probably maintain a VERY high balance…