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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: KTM rider
True.
And then ya die.
Better make plans for eternity now.
121
posted on
12/10/2012 4:38:03 AM PST
by
Elsie
(Heck is where people, who don't believe in Gosh, think they are not going...)
To: I want the USA back
122
posted on
12/10/2012 4:44:32 AM PST
by
TurboZamboni
(Looting the future to bribe the present)
To: SeekAndFind
Crazy.
But nothing surprises me anymore.
123
posted on
12/10/2012 5:19:40 AM PST
by
Lazamataz
(LAZ'S LAW: As an argument with liberals goes on, the probability of being called racist approaches 1)
To: ridesthemiles
We already have the dollar coins. They’re filling up sites like the end of “Raiders of the Lost Ark”. Nobody uses them, so there they sit. Another expensive .gov brainstorm.
To: Gay State Conservative
LOL. I bought a lot of those a few years back and gave them all out at the office. Folks were appreciative and amused.
If only I had known!
125
posted on
12/10/2012 5:32:38 AM PST
by
jboot
(This isn't your father's America. Stay safe and keep your powder dry.)
To: SeekAndFind
The only reason why Liberals don’t care about the debt is that they have every intent of having the US walk away from paying. They are just trying every trick in the book to increase the debt in the meantime.
126
posted on
12/10/2012 5:46:11 AM PST
by
Jonty30
(What Islam and secularism have in common is that they are both death cults.)
To: SeekAndFind
wampum gagnon style.
we are doomed.
t
127
posted on
12/10/2012 6:14:49 AM PST
by
teeman8r
(Armageddon won't be pretty, but it's not like it's the end of the world.)
To: xzins
Silly plebian! Don’t you know that Chairman Obama is above the law?
128
posted on
12/10/2012 6:16:31 AM PST
by
Cato in PA
(May America reap the putrid fruit of the demon seed it's sown.)
To: Cato in PA
Prior to Obama, which US president was the most imperial and authoritarian? (This is not a trick question. I’m truly interested.)
Lincoln and Jackson come to mind for me.
129
posted on
12/10/2012 6:48:31 AM PST
by
xzins
(Retired Army Chaplain and Proud of It! True supporters of our troops pray for their victory!)
To: hinckley buzzard
130
posted on
12/10/2012 7:15:28 AM PST
by
GrandJediMasterYoda
(Someday our schools we will teach the difference between "lose" and "loose")
To: arthurus
"...But when the big rich country engineers its own famine it will have to wait for the Rigellians to arrive with their UFO-loads of food..." Or, intentionally starve or murder a large proportion of their own citizens to fix the issue.
Or wait for war to do it for them.
131
posted on
12/10/2012 9:03:17 AM PST
by
rlmorel
(1793 French Jacobins and 2012 American Liberals have a lot in common.)
To: mikrofon
Why don’t we just make the ten dollar bill “go to eleven”?
132
posted on
12/10/2012 9:04:16 AM PST
by
rlmorel
(1793 French Jacobins and 2012 American Liberals have a lot in common.)
To: John S Mosby
The amount of platinum in the coin is irrelevant.
Congress (NOT the President, and NOT the Department of the Treasury, Bureau of the Mint) has the exclusive power "to coin money, and regulate the value thereof".
It would be perfectly constitutional for Congress to authorize by statute a 1 ounce platinum coin with a face value of one trillion dollars.
Of course, they would thereby create a few problems. But it's not illegal, it's not unconstitutional, and it would increase the money supply by however many coins were minted, without raising the debt ceiling.
133
posted on
12/10/2012 9:33:01 AM PST
by
Jim Noble
(Diseases desperate grown are by desperate appliance relieved or not at all.)
To: xzins
Otherwise, they are perpetrating fraudNot at all.
Congress has the power (and the duty) to "coin money, and regulate the value thereof".
Congress set the price of gold from 1792-1971 and set the price of silver from 1795-1964, and there was nothing fraudulent about THAT.
Congress has the power to mint platinum coins and set the value at USD one trillion/ounce. In fact, they have the power to pay off the national debt that way.
Since I presume they would not allow free coinage (i.e., they wouldn't pay YOU UDS one trillion/oz), it might be a hard sell to our foreign friends, but the notes we use to pay them now are essentially without value other than that decreed by Congress.
The "money question" is rising from the grave. Can YOU define "money"? Can you define "dollar"?
This could work.
134
posted on
12/10/2012 9:44:06 AM PST
by
Jim Noble
(Diseases desperate grown are by desperate appliance relieved or not at all.)
To: I want the USA back
Actually, from what I can tell, a lot of economists are really that insane.
They are the sort that say the national debt is no big deal because “we owe it ourselves” and that taxing the rich to redistribute to the poor is good because they’ll spend the money and “get the economy going.”
They are, to put it mildly, very detached from reality...
135
posted on
12/10/2012 9:50:25 AM PST
by
Little Ray
(Get back to work. Your urban masters need their EBTs refilled.)
To: SeekAndFind
That’s a great idea. We’ll just retool the soda machines to accept them and add a bunch of zeroes to our money and pay all our creditors back with an even trillion dollar coin. We could have the national debt payed off by the Fourth of July!
136
posted on
12/10/2012 9:52:54 AM PST
by
freedomfiter2
(Brutal acts of commission and yawning acts of omission both strengthen the hand of the devil.)
To: freedomfiter2
I hope they put Obama’s picture on it !
(sometimes you just got to laugh or you’d cry)
To: null and void
That coin might tear a hole in my trousers, unless we attach it to The Hitting Stick.
138
posted on
12/10/2012 11:27:14 AM PST
by
Lazamataz
(LAZ'S LAW: As an argument with liberals goes on, the probability of being called racist approaches 1)
To: SeekAndFind
How is it any different than what we are doing now?
Doesn’t the Federal reserve buy the bonds that the treasury is selling with money created out of thin air?
139
posted on
12/10/2012 11:31:11 AM PST
by
listenhillary
(Courts, law enforcement, roads and national defense should be the extent of government)
To: Jim Noble
No doubt, and perhaps you would say Congress has been doing that— but it has not. The Federal Reserves is “minting” or “coining” our “money” in electronic blips and at their all knowing whims.
The coin could be composed of ANYTHING. But they wouldn’t do it out of anything for the fact there is no value in say a wooden nickel. So instead some genius thinks, platinum, and would have to establish a value for the quantity of metal in it. Since the metal is a traded commodity, the “coinage” would be suitably meaningless. This is overall a foolish exercise, just as returning to a “gold standard” would be, because once again all the gold in the world that has been refined would fit in a cube 60 meters on a side.
The answer is to control the size of government— top to bottom audit— stringent thorough and complete. And then walk through each section of it— cutting away the vast waste that our govt. is.
140
posted on
12/10/2012 1:08:02 PM PST
by
John S Mosby
(Sic Semper Tyrannis)
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