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$US1 trillion coin debt solution gains currency

So QE has failed and we go to the next phase of fiscal silliness. It is suggested that to mint a $1 trillion coin would do no economic harm. How is this any different to printing $1 trillion iextra n $100 bills and using it to pay the government's bills.

International markets would react by decreasing the value of US currency. If that is what the US government wants then it has mechanisms to do this

I already raised that silliness days ago.

Really, didn't see it, must have been lost amid the other silliness. Seriously, is this a prank

Nadler thinks this is the Weimar Republic

Well it is beginning to look that way, tell you what, corner the market on wheelbarrows, there will be a big demand for carrying your money around

Paul Krugman is on board.

That would be the same 'economist' who claimed we could fix the economy by preparing for an invasion from ET .

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Originally Posted by tomder55

That would be the same 'economist' who claimed we could fix the economy by preparing for an invasion from ET .

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That's the one, the guy who turned down the Treasury job even though he wasn't offered the position.

I guess aluminum foil coins are out of the question.

Hello:

I don't know what you're complaining about.. Although it's bit slower, we're doing the EXACT the same thing with our paper money.

excon

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Originally Posted by excon

Hello:

I dunno what you're complaining about.. Although it's bit slower, we're doing the EXACT the same thing with our paper money.

excon

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Who isn't complaining about it? Oh I know, the poorest who don't have a clue that all this "quantitative easing" hurts them disproportionately and who just may think that taxing the rich is going to make things all better, even though the rich are going to pass those costs on to them making their cost of living even higher. Maybe they can get some government tortillas to help out if there's anything left of the corn crop after wasting it on ethanol.

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Originally Posted by tomder55

I guess aluminum foil coins are out of the question.

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The first innovative idea, I knew you had it in you Tom

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Originally Posted by paraclete

The first innovative idea, I knew you had it in you Tom

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And they double as hats.

Here's my version of your new trillion dollar coin...

Make your own here.

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Originally Posted by speechlesstx

And they double as hats.

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Yes that's why Tom had the idea

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Originally Posted by paraclete

Yes that's why Tom had the idea

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I know.

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Originally Posted by speechlesstx

I know.

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Here are some newly minted coins

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Perhaps in 10 years time a wheelbarrow of them will buy a loaf of bread

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Originally Posted by Tuttyd

Perhaps in 10 years time a wheelbarrow of them will buy a loaf of bread

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Do you think we will have to wait that long

I've been thinking about this coin thing and the government wants to raise cash, right, after all it bled $260 Billion in the last month. The traditional way is to sell Bonds but with low yield they are not attractive, and a $1 trillion coin is, well, passee, no individual could own it. However, what if it were to mint a million $1 million coins and sell them. There are many who could afford a $1 million coin and for the superrich perhaps a $100 million or even a $1 billion coin on application, There may even be an international market for it

Devaluing the currency is a stupid idea . It has led to the current economy.

But Tom it is going to happen whether you like it or not. The result of QE is devaluation of your currency. Every time you put more money in circulation you devalue the currency, basic economics. What you need is rampant inflation so you can afford your debt. If you want to be competitive internationally you need your currency to be at a lower value so your goods are cheaper. It might mean you pay more for imports, but much of that is cheap, not because your curency is strong, but because their currency is under valued. We survived our currency being 50% of the value it is today, and that was just a few years ago

You have to face the facts, these are different days, made different by rampant corporate greed, and your place in the world has changed

We need to take a haircut. Sequestration would be a good start. But we have an idiot in the White House who just selected water carrier for Treasury . By the way ;you would need a platinum coin the size of New Jersey to make it a trillion dollars . QE is criminally irresponsible ;but even Argentina would not have concocted such a hair brain scheme as a trillion dollar coin ;or handing out IOUs ,or any other scheme that Harry Reid and Schmuck Schumer can concoct.

That's it Tom, do an Argentina and repudiate the national debt, turn yourself into a banana republic. As one banana repulic to another, welcome to the club. We also do a nice line in mangos

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Neither Treasury nor Federal Reserve believes its legal to use platinum coins to avoid debt-limit increase, Treasury spokesman says

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Treasury nixes $1 trillion platinum coin - CSMonitor.com
Duhh... unless someone can show me where in the Constitution the President has the power to mint currency. ( see Art 1 Sec 8... the enumerated powers of CONGRESS )

Hello again, Mr. Constitution, tom:

So, you LOVE the Constitution when it says that Obama can't print money... But, it's FINE with you that the Republicans are threatening an UNCONSTITUTIONAL default on our debt.

Makes NO sense to me.

excon

They are not threatening to default. There is plenty of revenue to do debt service. Don't give me the canard about the 14th amendment. Section 4 was about Union debt and the purpose was to separate it from any debt the Confederacy had incurred; or the possibility that new Southern Senators and Congressmen would try to block the payment of that debt. What that clause really means for today is that a failure to raise the debt ceiling does not and cannot put America's current creditors at risk. So long as this government exists, those creditors must be paid.

Further ;sec 5 makes it clear that the Executive has no role in the enforcement of ANY of the provisions in the amendment... how often has that clause been violated over the years ?

Hello tom:

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Don't give me the canard about the 14th amendment.

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The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.

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You cal it a canard. I call it law.

Excon

No one is questioning the debt... and not extending the debt limit doesn't mean that the debt can't be paid. Treasury has to pay the creditors 1st and then any other expenses with what's left. Like I said ,there is plenty of revenue(as the Dems like to call taxes ) collected to easily pay off the debt... What you libs worry about is funding your precious discretionary expenses.

Ball's in your court . I already said I'm comfortable with shut down, sequestion or the recommendations of Simpson-Bowles... the bipartisan recommendations from the PRESIDENT'S own COMMISSION on budget balancing . Why Emperor Zero didn't pick Democrat Erskine Bowles for Treasury instead of the pea brain Jack Lew is beyond me.

Hello again, tom:

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I'm comfortable with shut down,

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We SHUT it down because we can't PAY what we OWE to keep it operating. That's a DEFAULT. You can call it a rose, but it's a DEFAULT.

Why ANYONE would want the country to default and cost the nation BILLIONS, is BEYOND me.. The only people who would do that love their party MORE than their country.

Excon

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We SHUT it down because we can't PAY what we OWE to keep it operating. That's a DEFAULT. You can call it a rose, but it's a DEFAULT.

Why ANYONE would want the country to default and cost the nation BILLIONS, is BEYOND me.. The only people who would do that love their party MORE than their country.

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Nonsense . There were shutdowns in both Reagan and Clintoon's terms and not once did we have a sovereign default .

Edit... Go HAWKS !

So you are happy to have a Greece on both sides of the Atlantic and I thought the US was too big to fail.

I'm sick and tired of socialist Keynesian solutions that don't work.

We are all tired of solutions that don't work Tom, but reality would have it rabid capitalism doesn't work either. Look at what it produced; slavery, depression, business failure, unemployment, inflation

Slavery was not a product of capitalism .The rest your critique is part of the business cycle and poor government intervention (inflation) .

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Originally Posted by paraclete

We are all tired of solutions that don't work Tom, but reality would have it rabid capitalism doesn't work either. look at what it produced; slavery, depression, business failure, unemployment, inflation

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Capitalism produced slavery? I think slavery predated capitalism by at least a couple of millennia.

Hello again,

Wait. WHAT?? You're not saying that slave holders weren't capitalists, are you?? That they didn't buy and sell slaves for PROFIT?? I think you are!

WOWSER!

excon

Actually as Steve says slavery predates most modern economic models. European slave trade was the product of merchantilism . Capitalism actually pays workers... or did you forget that it was the capitalist North that whipped the slave South ?

Hello again, tom:

Man, oh man... Obfuscate as much as you can, but you DON'T fool me... Capitalism is as OLD as MY people.

Besides, capitalism doesn't pay or NOT pay workers.. Capitalism is NOT business. You seem to DENY that factory owners, who MAY be capitalistic, are FINE with slave labor, and slave wages. But, you don't fool me.

excon

YOUR people had slaves.