Janet Yellin is the Secretary of the Treasury. Some people have suggested that Biden issue a single $Trillion bill to finesse the GQP’s attack on business as usual because it’s Democrats in charge. Such a bill would have “fiscal reality” even though it has no intrinsic value.
Scanning left to right, top to bottom…
Crypto, which is a form of NFT, is “mined” by doing a lot of heavy duty encryption calculations, which RIGHT NOW are using a significant fraction of ALL the world’s computational resources. And generating a humongous amount of waste heat in the process.
But wait, why not just issue a stone $T token. Because that would be just as real as a bill.
… or a coupon: equally real.
“Fiat” is latin for “Let it be done”. In a monetary context, it says that a big organization my simply create “money” by saying that whatever they create is money. “Fiat pecunia”.
So, indeed, money and monetary debt IS a product of an agreement among us all to treat money as though it were real, even though it’s not. However I disagree with this cartoon Yellin’s penultimate pronouncement. Regardless of how we measure it, if you owe someone, the fact that money’s a societal dream or delusion doesn’t change the nature of debt.
Thanks for your time.