5 votes

Minting a new trillion dollar coin?

With President Obama having kicked off debt ceiling negotiations by vowing not to negotiate over the debt ceiling, a new option for paying off the nation's considerable tab is gaining momentum with cheeky fiscal and monetary wonks.

http://news.yahoo.com/trillion-dollar-coins-ultimate-debt-ce...

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Minting such a coin and using it to settle debts...

...is no different than printing a trillion federal reserve notes and using them to settle debts: i.e. massively inflationary. This proposal has been around for a long time, and it's usually promoted by the greenbackers. What is the greenbacker, you ask? A greenbacker is someone who hates the Fed as much as we do, and wants to abolish it, but only so that the power to print can be given directly to Congress. Dennis Kucinich is an example of a greenbacker. The people who made the "Money Masters" documentary are greenbackers. They don't understand basic economics.

Anyway, the solution to the debt problem is not to create money (whether coins or notes) to pay off the debt. The solution is to cut spending enough to not only balance the budget, but have a surplus, with which to start paying down the principle OR (best option) to default on the debt altogether.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

A face to adorn.

"At that point, the American people must decide whose face will adorn the trillion dollar trinket."

obama's, of course! Then it truly WILL be a trillion dollar trinket!

"What if the American people learn the truth" - Ron Paul

Not a bad idea

I would love to have the US Mint make a platinum coin of one ounce, put a denomination of $16 trillion dollars on it and give it to Bernanke and tell him "thanks for the loan, this ought to make us even, now take your piece of crap scumbag bankers and get the hell out of our country!"

________________________________________

but make it out of something other than actual platinum

I don't think bernakes coin should contain ANY precious metal at all. I think they should mint him a PAPER COIN that is made out of trillions of shreds of FRNs

http://shelfsufficient.com - My site on getting my little family prepped for whatever might come our way.

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How about depleted uranium?

...the DoD tells us it's perfectly safe.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

:)

Got to give this a bump.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Can anyone say inflation?

It's probably some idiotic idea like this that will launch the U.S. into hyperinflation and bring about the economic apocalypse. But this is what passes for clever thinking these days. Most people will read this article, and say "Brilliant!"

I must not understand

the ins and outs of inflation... If the coin is platinum how would it cause inflation? I thought we were experiencing inflation because there were too many FRNs in circulation. What am I missing?

Another term for preventive war is aggressive war- starting wars because someday somebody might do something to us. That is not part of the American tradition.
-Ron Paul

Whether the coin is made of platinum or tin it doesn't matter.

What matters is the arbitrary value being given to the coin, not the market value. For simplicity sake, The market value of 1 ounce of platinum is approximately $2,000. So a platinum coin that was really worth 1 trillion would have to weigh 500,000,000 ounces. The coins they are talking about minting would of course weigh significantly less then this, probably only 1 or 2 ounces. So you see even though the coin is made of platinum, it is still fiat money. I.E. the coin doesn't derive its value from the market but from the ruler, in this case the President, assigning it an arbitrary value.

Wow a Yahoo article with some

Wow a Yahoo article with some truth in it that isn't aimed at morons.
Loved the joke at the end about who to put on the coin.

Southern Agrarian