One Trillion Dollar Coin!

Oh sorry - I looked for a thread on the Bullion branch and there wasn't.

See Poll with link to the REAL petition:
http://www.cointalk.com/t220213/

 

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No. The primary benefit of the coin in my opinion is that it wakes people up to the fact that it isn't necessary to borrow in order to have money. The trillion dollar coin might be a gimmick, but it's a very good gimmick and should not be dismissed to quickly. What difference does it make if the Fed has $1T of Treasury securities that can never be paid off, or a coin?

 

I don't think this is necessarily a problem. It may be a very simple but profound solution. It's better than being a debt slave and no more inflationary than having the Fed buy treasuries in the first place.

 

Psssstttt!


Hey buddy...
(I'm not your buddy, guy!)


Can you break a trillion? I want that in ones...

 

Of course this isn't news, but somehow it has gained traction and I've been seeing the idea mentioned in multiple forums/blogs/news comments, etc. of late. Wonder what set it 'free'? Is it just a 'trial balloon' item?

Wrong headed doesn't begin to cover this farce of an idea, but that may be what makes it so appealing to our 'dear leaders'.

 

I don't know who gave "permission" to float the idea, but it's more than a farce. It might be a first step to merging the Federal Reserve into the Treasury Dept. and ending the farce of having the government go to a bank to get money instead of using their constitutional power to create it. People might wake up and realize they don't have to pay interest for the nation to have a money supply. Rather than appealing to the 'dear leaders,' I'll bet they are horrified that someone pulled back the curtain on them.

Edit: It used to be said that the national debt didn't matter because we owed it to ourselves. This is more true than ever when the debt is held by the Fed. The debt can be effectively cancelled and nobody goes backrupt, nobody is hurt, nothing happens the next day. Except that our children and grandchildren don't have to work a debt slaves to pay interest to the Fed.

 

Why not mint a decillion dollar coin? With a decillion dollars, we could do away with all federal taxes for 100 years.

 

Yes, but the biggest part of the national debt is owed to the Social Security Administration. Cancel that debt and people suffer.

 

July 2012, 48% of US public dept was owned by foreign investors with China and Japan approx. 1.1 trillion each. You think they will be happy with a coin?

 

well actually the treasury can make trillion dollar platinum coins as well, that'd work, I assume it would destroy any remaining faith in the dollar, nonetheless it would get us out of debt though.

 

Not sure if they will be happy but someday 1 oz of platinum will be worth more than a trillion U.S. dollars probably, so they could do worse.

 

Good post, the international bankers own the USA. Nothing is going to get better until we fix that.

 

That's $2.2 trillion. How is that 48% of a public debt of $16 trillion. The bulk of the Public debt is owned by the Fed. That $2.2 trillion is probably 48% of what is NOT owned by the Fed.

 

Oh come on! No one liked this?

 

I did not say Japan and China holds 48 %. It is 48% of total dept held by foreign investors with Japan and China being the biggest stakeholders, but still small in the 48% picture. I am not even American and have sleepless nights over this.

http://en.wikipedia.org/wiki/United_States_public_debt

 

I expect that debt to be cancelled next. There is no reason for it to exist. When the SSA needs money, they give their bonds back to the Treasury Dept., and the Treasury gives them money. If the bonds didn't exist, the Treasury would still give them the money since the payments to SSA are part of the unified budgeting process at the Federal level.

 

That is an entirely different situation, and outside debt must be honored. But interest on the debt held by the Fed is paid back to the US Treasury Dept anyway, so cancelling the debt with a coin has no real effect on anyone except that it relieves future generations from being taxed for it.

 

Understood, how do you think the US can pay back outside dept?

 

Print money like they always do. The U.S. has control of its own currency, when you can print your currency there isn't any way that you can't pay back your debts unless you simply choose to not print anymore.

 

It will have to come from taxes. However, don't be surprised if the government doesn't find a way to default on it without actually calling it a default. Also, I don't actually think the $1T coin will be minted. The powers that be will continue to push more debt onto the American balance sheet until they own everything.