(03-14-2017, 06:24 PM)Kinser79 Wrote: Or perhaps, and this may sound crazy but it's been done before....since the treasury can issue notes bearing interest then surely they can also issue non-interest bearing notes of non-debt.
https://en.wikipedia.org/wiki/United_States_Note
While potentially radical and possibly subject to abuse it would solve the bill paying problem.
I don't think so. What private party would buy non-interest-bearing paper in a world of still positive inflation? The Fed is barred by law, I believe, from doing this.
The last time we had one of these it was non-event that the market completely ignored. Looks like they are ignoring this one too. I will point out that the market also ignored Y2K, which led me to believe it was going to be a non-event, which it was.