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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
Beyond belief! The ONLY fix to get our economy back into recovery is a reduction of “freebies” and hand-outs of ridiculous grants for unnecessary studies, and to cut the wages and staffs of overly populated government offices and eliminate duplicate and worthless programs.
141
posted on
12/10/2012 1:24:21 PM PST
by
CitizenM
(Obama - The architect of the decline of the U.S.)
To: Lazamataz
No good. It would get all scratched up dragging in the dirt.
142
posted on
12/10/2012 1:29:41 PM PST
by
null and void
(Going Galt: The won't of the people)
To: null and void
Then I will simply have to elevate the Hitting Stick.
Think: 10 ton 3 story crane.
143
posted on
12/10/2012 1:32:07 PM PST
by
Lazamataz
(LAZ'S LAW: As an argument with liberals goes on, the probability of being called racist approaches 1)
To: Gilbo_3
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...
Simple. Just declare 2013 a Jubilee Year.
Any Messiah should be able to do that...
144
posted on
12/10/2012 1:35:21 PM PST
by
null and void
(Going Galt: The won't of the people)
To: Lazamataz
145
posted on
12/10/2012 1:38:47 PM PST
by
null and void
(Going Galt: The won't of the people)
To: null and void; sickoflibs; stephenjohnbanker; NFHale
Just declare 2013 a Jubilee Year. Any Messiah should be able to do that...
dang null and void...i respectfully bow to your masterful sarc...schooled me good with that one... 8^}
146
posted on
12/10/2012 1:55:23 PM PST
by
Gilbo_3
(Gov is not reason; not eloquent; its force.Like fire,a dangerous servant & master. George Washington)
To: John S Mosby
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.Well said, sir!
Surely you do not believe that such a result can be achieved by universal franchise voting combined with free television "news" and infotainment - do you?
147
posted on
12/10/2012 2:05:44 PM PST
by
Jim Noble
(Diseases desperate grown are by desperate appliance relieved or not at all.)
To: Gilbo_3
Ummmm... Sarcasm?
It was meant as a serious suggestion.
A full reset every 49 years would jam the 50 year Kondratiev wave...
148
posted on
12/10/2012 2:07:14 PM PST
by
null and void
(Going Galt: The won't of the people)
To: SeekAndFind
How about a giant rubber coin? It seems weirdly appropriate -- and Douglas Adams seems weirdly prophetic.
149
posted on
12/10/2012 3:38:30 PM PST
by
Sooth2222
("Suppose you were an idiot. And suppose you were a member of congress. But I repeat myself." M.Twain)
To: SeekAndFind
While we are at it we can change the name of our country to Argentina.
150
posted on
12/10/2012 5:47:56 PM PST
by
ElkGroveDan
(My tagline is in the shop.)
To: SeekAndFind
Why don’t we give each person a billion dollars, so we could all be billionaires? What’s economically wrong with that? /s
To: jz638
>"Whats next, suggesting Joe Biden design his own perfect car to save GM?"Uh... Volt.
Mat Groening runs our govt.
152
posted on
12/10/2012 6:03:13 PM PST
by
rawcatslyentist
("Behold, I am against you, O arrogant one," Jeremiah 50:31)
To: GeronL
-— Are we insane? -—
E. Michael Jones, in “Degenerate Moderns,” and Paul Johnson, in “Intellectuals,” proved to me that the price of licensiousness is rationality. IOW, modern philosophy is one long justification of vice. Keynes was a prime example.
To: Bi-ped Carbon Unit
oh i figgered out the answer to why nobody uses them just have the federal mandate that all vending machines have to be retrofitted to take the coins or else
154
posted on
12/10/2012 7:00:21 PM PST
by
ichabod1
(Spriiingtime for islam, and tyranny. Winter for US and frieeends. . .)
To: xzins
zero combines the unconstitutional, ends-justify-the-means tactics of Lincoln with the manners and social graces of Jackson.
155
posted on
12/10/2012 7:03:03 PM PST
by
ichabod1
(Spriiingtime for islam, and tyranny. Winter for US and frieeends. . .)
To: SeekAndFind
Accepting for the moment that Congress authorized the issue of platinum coins at whatever value the Treasury puts on them, the act would be unconstitutional as it would abrogate the Congress’ power to coin money and regulate the value thereof. I suspect that there is legislative history in which the Congress provided some parameters to what the Treasury could do with platinum coins.
To: Redmen4ever
I have now read the code.
The section [section (k)] could be better worded.
It says the Secretary [of the Treasury] can issue platinum BULLION coins and PROOF platinum coins of whatever design and denomination he chooses.
It can be argued that the use of the word “bullion coins” means coins that are acquired as a store of value, not as a medium of exchange, whether or not they possess a legal tender value, and that sell for the cost of metal plus a modest premium so as to cover minting and distribution costs and possibly also a reasonable profit.
http://en.wikipedia.org/wiki/Bullion_coin
It can also be argued that the use of the word “proof coins” means coins that are very highly polished so as to be of interest to collectors, and not as a store of value nor a medium of exchange; and commanding a larger premium over cost than a bullion coin.
http://en.wikipedia.org/wiki/Proof_coinage
The obvious meanings of these two terms COMBINED WITH the presumption that Congress would and should jealously guard its powers under the Constitution, would mean that the argument of the socialist progressives that their would be dictator has found away our system of checks and balances, should be summarily rejected by the courts.
To: SeekAndFind
Just create “The Infinity Coin”, and then, live happily ever after.
158
posted on
12/10/2012 10:29:58 PM PST
by
johnthebaptistmoore
(The world continues to be stuck in a "all leftist, all of the time" funk. BUNK THE FUNK!)
To: SeekAndFind
The platinum coins are just part of a gigantic fiscal shell game--a distraction for the eye of the gullible public.
The instant the 2 Trillion is deposited in the Treasury, the mammoth printing presses will roar into life and pour out hundreds of tons of paper 24/7.
Children playing with blocks of currency in Weimar Germany (1920's)
159
posted on
12/10/2012 11:44:53 PM PST
by
henbane
To: Jim Noble
Only if the “infotainment” would be like that which helped cause say, the East German (East Berliners receiving W. Berlin TV with ads for goods, opportunity society vs. the slave State) to create desire for independence. That element of society I think is lost to the self-sufficiency citizens.
If we have gone past the tipping point, and Everyone is on the govt. teat at the “voting” level (not talking about the upper middle layers like biz subsidies which obamao has also been buying off for the machine)-— if that is now true, then this will have to be done off the grid.
Start with the Founding principles, the need for morality as a basic tenet for our Constitution to work, and also the basis for self-sufficiency— not reliant on the expanded “common good”. How many people are left who think and FEEL this way— emotionally and intellectually. There may be more than we think— and I pray that is true. But there must be a plan.
Deo Vindice.
160
posted on
12/11/2012 9:27:37 AM PST
by
John S Mosby
(Sic Semper Tyrannis)
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