Posted on 01/09/2013 8:37:01 AM PST by Qbert
Well, the trillion-dollar-coin thing — deal with the debt ceiling by exploiting a legal loophole to have the Treasury mint one or more large-denomination coins, deposit them at the Fed, and use the cash in the new account to pay bills — has really taken off. Last month I spoke with a senior Fed official who had never heard of the idea; these days it’s all over.
There seem to be two kinds of objections. One is that it would be undignified. Here’s how to think about that: we have a situation in which a terrorist may be about to walk into a crowded room and threaten to blow up a bomb he’s holding. It turns out, however, that the Secret Service has figured out a way to disarm this maniac — a way that for some reason will require that the Secretary of the Treasury briefly wear a clown suit. (My fictional plotting skills have let me down, but there has to be some way to work this in). And the response of the nervous Nellies is, “My god, we can’t dress the secretary up as a clown!” Even when it will make him a hero...
[Snip]
What the hysterics see is a terrible, outrageous attempt to pay the government’s bills out of thin air. This is utterly wrong, and in fact is wrong on two levels.
The first level is that in practice minting the coin would be nothing but an accounting fiction, enabling the government to continue doing exactly what it would have done if the debt limit were raised.
[Snip]
So minting the coin would be undignified, but so what? At the same time, it would be economically harmless — and would both avoid catastrophic economic developments and help head off government by blackmail.
(Excerpt) Read more at krugman.blogs.nytimes.com ...
A two-fer: an imaginary straw man that absolutely nobody in the world has offered.
Yes. And his desired “post-American world” is definitely something most of us (if we’re permitted to stay alive) will not find very attractive (or beneficial)
Sounds like a good idea!
MADelieine Albright said she was frightened by the possibility of a future where America was the lone superpower.
What is a Nobel Prize worth any more?
yes.
the odd thing is that Obama has sent American troops into 25 African countries (apparently, like his bombing of Libya and his deposing in Egypt) to bring the radical Islamicists into power...
so America as ruled by these antiAmerican people is far, far more aggressive sending military to disrupt or overthrow foreign countries..... than it ever was under JFK, RMN, RWR, or anybody else since.
It seems as if the antiAmerican crowd is fulfilling its own prophecy (fear that America as the only super-power will be a danger to the world...)
Because that would require a law. It is already legal to make platinum, legal tender coins, primarily for the mint to make collector's items, but unlike gold and silver Congress never put a limit on the value of the platinum coins allowed so a trillion dollar coin could get through that loophole. Big rocks aren't on the list.
And it wouldn't even be a "big chunk" of platinum - just something large enough to hold a one followed by a dozen zeroes. One ounce per coin should be more than enough.
Make a mockery of this idea by carrying it to its extreme logical conclusion.
Please sign and promote the White House Petition:
“Produce a Trillion Dollar Coin for Every U.S. Citizen for the Purpose of Paying Taxes
Activities and services pledged by the U.S. government exceed the ability to pay based on current tax revenue. The budget deficit is added to the national debt, and federal taxes are used in part to pay for the debt and interest.
“Trillion dollar” coins are being considered to pay the national debt, however, we petition the U.S. Government to mint an adequate quantity of “trillion dollar” coins to pay off the national debt, and enough additional coins to provide one for each citizen of the United States.
These coins can only be used to pay federal, state, and miscellaneous taxes for the lifetime of the recipient. Residual funds from each coin will be available to heirs of the recipients, and will be exempt from inheritance tax.”
Good point.
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