One Trillion Dollar Coin!

I just read this on CNN its a good read to me at least! Check it out!

http://economy.money.cnn.com/2013/01/04/platinum-coin-debt-deiling/?hpt=hp_t2

 

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Ha ha!

"Creating money out of thin air is hardly a solution."

What is it that the author think the US Mint does if not "create money out of thin air"?

As for the actual column, the author is simply showing his ignorance.

The debt ceiling is a fictional line as the Federal Reserve Bank ( a private bank with only one customer ) would be more than happy to lend the United States of America another 16 trillion dollars if Congress would approve it. And therein lies the problem. All those Congress People running around like lost children trying to save their careers but hesitating on raising the debt ceiling which would allow congress to borrow more money.

EVERY asset the USA has, is the result of borrowing money from the Federal Reserve Bank as there is no Gold Standard, nor Silver Standard nor ANYTHING that backs the Federal Reserve notes we use on a daily basis. Nara! Nothing!

Should the government decide to be a bunch of smart alecs and mint up a 16 or so "trillion dollar" platinum coins and then attempt to pay off its debt to the Federal Reserve Bank with them, the Federal Reserve Bank would simply raise interest rates and call in its obligations which in effect would bankrupt the country on the World Market.

efferson was against borrowing money to run the country as have been many, many presidents in the past. Unfortunately, our people have been so "dumbed down" to reality that even the current flock of Congress people just don't have a clue as to where our money really comes from.

The result is that we are so far into debt, we'll never get out of debt regardless of who does what.

 

Yeah I heard about this Trillion Dollar coin earlier today. It's not any different than QE3, they're already creating money out of thin air. Somebody is messing up and we need to throw the bums out of office.

 

Unfortunately, that won't work.

 

It is an absolute ridiculous idea. I just can't wait until some meth head gets a hold of one of them and tries to pawn one off for a couple hundred bucks.

 

Well said. Thank you for saving me the virtual breath.

 

I think they should mint 2 of them and sell them to Al Gore at face value!

 

They should put Wimpy on the obverse:

"I will gladly pay you half of a hamburger
on Tuesday for hamburger today."

To make it really special give Wimpy a finely
manicured grey beard.

 

What if it only grades MS-66?

 

I just heard the new Dansco type set album had a hole for that coin..... That one is going to be a real bugger to fill

 

No problemo filling the hole -- the Chinese have already minted hundreds out of super-compacted tin foil.

 

Just wait a few years... it will be the new Dollar.

 

It would make a great satire theme for a
private mint.

 

Does anybody think that we are going to end up paying off our national debt? The answer is most likely no. It has gotten to the point of no return. If the US were to cut spending and start to pay off the debt it would cause huge deflation and would put us in a depression. However, minting this coin would cause the same amount of inflation short term as borrowing it however without needing to pay interest. It could trigger a fear in the USD though.

 

Read about this in the Huffington Post (AOL). I believe half of what I see and nothing of what I hear...........

 

I don't understand. Would the US still have to borrow the money from the fed?

 

Correct. It is now mathematically impossible to pay off the national debt, and if you taxed everyone at 100% (!!), you would barely cover the interest on the 2013 budget deficit.

They are two quite different things, so don't lump them together as a liability. Got PM??

 

"I don't understand. Would the US still have to borrow the money from the fed?"

=====

That is the ONLY thing the Federal Government can do to avoid total default on the dollar, and of course, total default on Treasury bonds and notes.

The "unknown unknown" that's coming is the net position of the $1.2 QUADRILLION derivative market. That number is 20 times the size of the entire global economy. A writedown of just 5 cents on the dollar wipes out one year's economic growth, worldwide...

See: http://tinyurl.com/cyhdoro

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I read somewhere that the Fed is buying up to 90% of T-bills now, so what's a trillion dollar coin going to do?

We are in real trouble, and the cure may be worse than the disease. I think the problem with minting the coin and paying off our debt with it is it exposes our money system for what it is. That could cause real problems.

 

No kidding! Hyperinflation is coming. Got PM?