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Insane: Liberals Contemplate $1 Trillion Platinum Coin to "Solve" Debt Limit Issue
Townhall ^
| 12/08/2012
| Guy Benson
Posted on 12/08/2012 10:32:31 AM PST by SeekAndFind
Welcome to Zimbabwe. This is not a parody -- it is an actual report from the Washington Post:
Some economists and legal scholars have suggested that the “platinum coin option” is one way to defuse a crisis if Congress can’t or won’t lift the debt ceiling soon. At least in theory. The U.S. government is, after all, facing a real problem. The Treasury Department will hit its $16.4 trillion borrowing limit by next February at the latest. Unless Congress reaches an agreement to raise that borrowing limit, the government will no longer be able to borrow enough money to pay all its bills. Last year, Republicans in Congress resisted lifting the debt ceiling until the last minute — and then only in exchange for spending cuts. Panic ensued. So what happens if there’s another showdown this year? Enter the platinum coins. Thanks to an odd loophole in current law, the U.S. Treasury is technically allowed to mint as many coins made of platinum as it wants and can assign them whatever value it pleases. Under this scenario, the U.S. Mint would produce (say) a pair of trillion-dollar platinum coins. The president orders the coins to be deposited at the Federal Reserve. The Fed then moves this money into Treasury’s accounts. And just like that, Treasury suddenly has an extra $2 trillion to pay off its obligations for the next two years — without needing to issue new debt. The ceiling is no longer an issue.
“I like it,” says Joseph Gagnon of the Peterson Institute for International Economics. “There’s nothing that’s obviously economically problematic about it.” In theory, this is much like having the central bank print money. But, says Gagnon, the U.S. government would simply be using the money to keep spending at existing levels, so it wouldn’t create any extra inflation. And if it did cause problems, the Fed could always counteract the effects by winding down some of its other programs to inject money into the economy. Is the platinum coin option really legal? Apparently so. It was discussed* during the 2011 debt-ceiling crisis by Jack Balkin, a law professor at Yale Law School. Under law, he noted, there’s a limit to how much paper money the United States can circulate at any one time, and there are rules that limit how many gold, silver and copper coins the Treasury can mint. But there’s no such limit when it comes to platinum coins.
I'm at a loss for words. I mean, you'd think that there's no way on earth the White House would even float anything like this, if only because of the massive political risk and insane optics. But I guess you never know; Obama did just ask Congress to relinquish all of its debt limit-related powers to him, after all. It's difficult to identify the most mind-blowing element of this article, but economist Joseph Gagnon's quote might take the cake. There's "nothing that's obviously economically problematic" about this absurd scheme? Printing, or rather minting, $2 trillion in magic money, overnight, to artificially "pay for" existing federal obligations isn't "economically problematic"? In that case, we should print $87 Trillion in special coins and retire all of our accrued debts and obligations in one fell swoop. I'm sure the massive devaluation of the dollar, inflationary spikes, and total loss of confidence among our creditors would work themselves out somehow. Thank goodness for experts.
TOPICS: Breaking News; Editorial
KEYWORDS: 1trillion; coin; cookedthebooks; cultureofcorruption; currency; debtlimit; democrats; inflation; obama; obamascandals; platinum; platinumcoin; platinumcon
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To: SeekAndFind
Why do you need platinum to do this? You could take one of Obama’s turds, stamp it with the words “$1 trillion” and place it in a deposit box at the Fed. Same effect.
101
posted on
12/09/2012 9:46:41 AM PST
by
fhayek
To: SeekAndFind
Considering that there are two places in the world we get platinum— Siberia, and South Africa— me thinks the russkies and their leftie pals are behind this scheme. No rational “economist” of any real pedigree would support it.
There is only a little less than a 25ft(to the3rd power) or 15,625 cubic feet of the metal ever mined if it could ever be collected in one place (according to Monex web site). The closing price on platinum Friday was 1,606/oz.
A 10 oz bar of .999 pure platinum ($16060) is (by Monex description in mm converted to inches) 2 23/64 x 1 25/64 x 19/64 in inches or .97404 cubic inches. Doing a little more number crunching, converting cubic inches to cubic feet and how many cubic feet it would take, and assuming the Friday market closing price-— for a trillion dollar coin to be made would take more cubic feet of platinum than ever mined. Assuming that amount of platinum could be collected.
That would be some size coin and impossibleUNLESS, at the same time they devalued platinum dramatically to reach the desired valuation. And, by so doing destroy our currency from that substitute standard. So it would have to be a “fake” coin— and worth— just that.
Pure utter lunacy. Or, the design of marxists to destroy a countrys currency in one move out of crisis of debt intervention without any reduction in government expense. This must be the Laura DAndrea Tyson award winner the champion of Ceaucescu Romania.
102
posted on
12/09/2012 9:58:51 AM PST
by
John S Mosby
(Sic Semper Tyrannis)
To: SeekAndFind
Bingo— the “Peterson Institute for International Economics” has among many other left wing whackos:
Lawrence H. Summers—former Treas. under obamao— nightmare.
Laura D’Andrea Tyson—champion of Ceaucescu’s Romania model!!
Ernesto Zedillo, former pres. of Mexico (via Salinas):- who engineered for Salinas the crash of the peso. Clinton’s Treas. Sec. Robert Rubin (he, of Goldman Sachs) floated 50 billion to Mexico to make it up— and made a tidy sum for the sack of Sachs).
103
posted on
12/09/2012 10:11:52 AM PST
by
John S Mosby
(Sic Semper Tyrannis)
To: SeekAndFind
The 100 year charter of the Federal Reserve Bank EXPIRES on Christmas Eve 2013. Re-approval of another X years? Now THERE is something to be advocated against. Take back our Constitutional Powers of the Congress.
Obamao is NOT Andrew Jackson-— he is a TOOL of the Federal Reserve.
Think about it folks. Greenback dollars-— OUR money— not Federal Reserve “Notes”.
It CAN be done.
104
posted on
12/09/2012 10:23:27 AM PST
by
John S Mosby
(Sic Semper Tyrannis)
To: ichabod1
Lenin and Stalin showed the way. In Russia the peasants were the least reliable politically and were starved. Here the larger farmers are already pretty firmly attached to the government teat. The target “class” would be the small businessmen and the private sector managerial class who would be sort of analagous to the Ukrainian Kulaks. These are the independent minded folks who balk at government control. The Wealthy, whom we might assume to be allergic to the communists are the easiest group to deal with. Some will join the Revolution willingly and the group is small enough that the unreliables can simply be killed or put to directed labor quickly and easily. The President already has a legal right to sequester and/or kill anyone he chooses without any sort of judicial proceedings thanks to the current version of the Homeland Security law which our 2010 Tea Party reps eagerly passed.
105
posted on
12/09/2012 10:40:45 AM PST
by
arthurus
(Read Hazlitt's Economics In One Lesson ONLINE www.fee.org/library/books/economics-in-one-lesson)
To: SeekAndFind
Correction- there was never a 99 year (or 100 year) charter for the 12 Federal Reserve Banks. It was for 20 years, and then after the 1927 McFaddin Pepper Act it read:
” To have succession after February 25, 1927, until dissolved by Act of Congress or until forfeiture of franchise for violation of law.”
So, alter what I posted. Let’s move to forfeit their franchise for major violations of law- like influencing a moron like Geithner who neither paid his taxes nor thinks there should be a limit to our national debt. Criminal influence on our govt. by the ultimate private bank.
Anyone know if the charter is EVER reviewed? Or is this something no typical politician will ever touch?
106
posted on
12/09/2012 10:45:33 AM PST
by
John S Mosby
(Sic Semper Tyrannis)
To: SeekAndFind; All
I placed my first order for silver bullion bars last night.
For once in my life, my timing looks to be impeccable!
107
posted on
12/09/2012 12:37:07 PM PST
by
Red in Blue PA
(Read SCOTUS Castle Rock vs Gonzales before dialing 911!)
To: SeekAndFind
And X amount of Food would suddenly cost 2 trillion more to buy. Idiots.
108
posted on
12/09/2012 12:38:42 PM PST
by
Revel
To: SeekAndFind
109
posted on
12/09/2012 1:21:25 PM PST
by
Lucky9teen
(Peace is that brief glorious moment in history when everybody stands around reloading.~Thomas Jeffer)
To: John S Mosby
“..... for a trillion dollar coin to be made would take more cubic feet of platinum than ever mined. Assuming that amount of platinum could be collected.’.....”
********************************************************************
I think you missed the point. The trillion dollar coins could be the size of a silver dollar or a US quarter; there’s nothing that says the coins themselves would have to have any intrinsic value besides the value of whatever amount of platinum they contain. The point would be to allow the US government to print more money and negate the need for Obama to borrow more. This is a theoretical possibility only and likely would lead to Obama’s impeachment—but only after 2014 when a new crop of Senators would come in and the damage would already have been done to the US economy and the dollar.
To: sickoflibs
wouldnt it be easier, and the same difference to just *decree* to our creditors that theyve been paid in full...
maybe just send em all a *reset* button or sumthing...
the bambam could then just double down and buy all our votes for a *rebate* [stimulus] check as well ???...just put 6-7 zeros on the number and have lemmings for life...
111
posted on
12/09/2012 3:11:38 PM PST
by
Gilbo_3
(Gov is not reason; not eloquent; its force.Like fire,a dangerous servant & master. George Washington)
To: ridesthemiles
Can we use them in a vending machine when we’re thirsty?
112
posted on
12/09/2012 3:22:02 PM PST
by
driftdiver
(I could eat it raw, but why do that when I have a fire.)
To: PIF
“One Toony made of platinum to be worth 100 trillion would likely consist of the entire worlds supply of that metal ...”
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
Yeah but once the real Zimbabwe inflation hits there will be 100 trillion dollars worth of platinum in the catalytic convertor from a Mini Cooper.
113
posted on
12/09/2012 5:24:03 PM PST
by
RipSawyer
(I was born on Earth, what planet is this?)
Comment #114 Removed by Moderator
To: Elsie
Best part: “...and can assign them whatever value it pleases.”
Yeah-No.
115
posted on
12/09/2012 7:26:37 PM PST
by
4Liberty
(Some on our "Roads & Bridges" head to the beach. Others head to their offices, farms, libraries....)
To: Stosh
It’s an indictment of the times we live in that the people in charge apply all their brain power to come up with the cleverest methods they can to *avoid* solving serious problems. What makes you think that isn't the policy, of whoever is telling George Soros and the Boys Downtown and the Fed what must happen/must not happen? Social Security, U.S. national savings (we're too comfortable), older Americans, and nationad debt must all go away. "A *thing* happened. Live with it, it's just a trend -- toward no savings, no medicines, no government, no money, and rationed food/water. It's your fault. Nothing to be done. No medz for you!! Try Soylent Green, it's nutritious."
To: fhayek
117
posted on
12/09/2012 7:29:05 PM PST
by
4Liberty
(Some on our "Roads & Bridges" head to the beach. Others head to their offices, farms, libraries....)
To: hinckley buzzard
. . . a total waste of good platinum . . .
118
posted on
12/09/2012 11:02:20 PM PST
by
Phil V.
To: lentulusgracchus
this is what happens to all civilizations eventually . Good time to stock up on ammo and sharpen up on survival skills .
119
posted on
12/10/2012 12:02:25 AM PST
by
KTM rider
( , you'd be lucky to get= $7....LOL !)
To: SeekAndFind
I’ve got an old pair of penny loafers in my closet. Why not just deposit them in the bank, say each is worth a trillion, and .... Ya know, whatever.
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