that's true, but if you recall the big banks that composed the cartel and the FED originally supported the gold standard and were wary of Roosevelt, of 1933 devaluation, and of fiat money generally. They went along with that then when threats from far left and far right endangered their interests more than the danger posed by a strong central government with power to create money.
IMO, as long as the President isn't genuinely opposed to their interests, the banks will acquiesce in the gradual centralization of power in the executive, rather than let the children in congress embarrass the country with empty political threats against USG credit rating. '
The $T coin proposal is not just a practical proposal but is used to illustrate the reality that USG isn't constrained operationally by any borrowing, taxing or debt ceiling statutes, despite the institutional and legal arrangements that prevail.
The reality is that a fiat money regime spends money by crediting bank accounts, and taxing/borrowing are just ways of mopping up money they created and setting interest rates. As much as the Austrians are superior on capital theory and being politically realistic, and as naive as the MMT proponents often are about political reality, incentives and complexity of markets, they do have a more accurate understanding of how the banking system an monetary system function and relate to each other in our present monetary system.
Want DP delivered to your inbox daily? Subscribe here: