News of the SUPER-WEIRD: Thou Shalt Not Mint It! LOL

This was (I thought) a mind-boggling, fringe-nutty idea when I happened to see it on a Gold-Bug forum a few years ago. New Normal now?

The concept goes the US Mint should coin a really, really, really big bullion round (valued at a Trillion USD$ or so) ... and thereby settle the US debt.
However far-fetched, it was considered "a good idea" by resident bullionists/GBs who were, almost without exception, Republican-/ or right-leaning.
I was not opposed either, but I didn't think through any implications or effects ... for now I'll claim agnostic.

Now a Dem has floated the idea and Repubs are furious with the suggestion - a total FLIP-FLOP! (Just like they did on the Healthcare Individual Mandate.)

http://www.huffingtonpost.com/2013/01/07/platinum-coin-greg-walden_n_2425940.html

Does this story have legs? What do bullionists on CT think about sending China a Monster Coin to settle the rotten Treasury Paper?

And doesn't Rep. Denny Rehberg (R-Mont) keep introducing 'Gimme Bills' in Congress, to FORCE the Mint to issue PGM coins? What does he have to say about all this?

 

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Its a brilliant idea!!! (sarcasm, eyeroll) Why don't we just mint 300 million, trillion dollar rounds and everyone in the United States can be rich, WOOHOOOOOOOO!

 

Shaddap! I'll take mine, thx. FREE MONEY!!! :hail::hail::hail:

That's better than the measly checks in FRN fiatscos that Shrub sent us taxpayers back in 2003, no?

Whatever they have to do to halt deflation next go-rounds, it'll get weirder and weirder ...

 

I'm not sure there would be any difference between the Fed holding a trillion dollar coin and the Fed holding treasury securities. It's in line with my forecast that the government would find a way to retire or default on the debt held by the Fed. I didn't expect to see the idea floated this soon.

 

Pseudo-economist Paul Krugman signed on to the idea this morning LOL LOL, see www.marketwatch.com

"Krugman joins
$1 trillion coin brigade"

 

Good grief, PAUL KRUGMAN is on board. Ahahahaha!
http://krugman.blogs.nytimes.com/2013/01/07/be-ready-to-mint-that-coin/

So far, the Platinum Market is NOT responding tho
http://www.google.com/finance?q=NYSEARCA:PPLT

 

(doug444 you beat me to it.) :thumb:

I'd prefer the $1 Trillion Dollar Coin to be minted in RUTHENIUM or RHODIUM.
But the law says "Platinum" so Pt it must be...

There's a very funny comment below, on doug444's link
Obama should mint three platinum coins: $1 trillion coin, with Boehner's face (tearful), $5 trillion, with McConnell's (scowling), and a special $10 trillion coin, with Cheney's, with as inscription his most famous utterance, "Deficits Don't Matter".

That reminds me of this:
[video=youtube;alAbt987F3A]http://www.youtube.com/watch?v=alAbt987F3A[/video]

 

"When you factor in the probability that there will have to be a default of some kind, I don't know when, it might be advantageous to have a high percentage of the bonds owned by the Fed so they can be "retired" or converted into zero rate perpetual bonds. So this isn't a clear-cut negative situation in my opinion, and may be part of a longer term plan to deal with the debt. "

Read more: http://www.cointalk.com/t219925-3/#ixzz2HKA643qg

I wish I'd thought of the coin option.

 

I can't believe this story keeps spreading around. This is no different than Zimbabwe printing $100 trillion dollar notes. If they want to see inflation sky rocket, then by all means, starting coining 1 trillion dollar coins.

 

You guys know that a coin wouldn't cause as much inflation because it wouldn't be used over and over again.

 

Can I use my $100 trillion dollar Zimbabwe note to buy 100 of these coins? . TC

 

There would be no "super large coin". It would be a silly accounting gimmick for the president to sidestep the law and not obey the debt ceiling.

The law that would be twisted would be the one authorizing a PT bullion coin, but not stating the denomination. The mint could strike one ounce PT coins but assign a trillion dollar face value on them. These would then be deposited into the Fed. Just a stupid gimmick.

 

What'll they think of next!

Haven't we already an odd ongoing experiment with the 5 ounce silver America the Beautiful coins bearing a .25¢ denomination. :smile

 

Actually, the coin is not inflationary at all. The inflationary impact occurred when the Fed purchased the bonds. This is an incredibly deep idea and once you get beyond the emotional jolt of seeing a trillion dollar coin, you'll realize it is no different than seeing a trillion dollar bond.

 

Kind of starting to remind me of this:



Hate to burst anyone's bubble, but the only way out of this mess, is a revolution.

Jobs went to China, wages are flat-lined, but the prices of good and services keep going up. We stretch our dollar every year, but it can only be stretched so far.

The quicker people wake up and realize that we are not making progress, the better.

 

The cancellation of debt held by the Fed is a good first step. Revolution isn't necessary or desirable. A return to sound economics will suffice and this is a good first step. The next would be the reinstitution of tariffs to force corporations to repatriate jobs, but that will be a tough sell since everyone is brainwashed to think "free trade" is good for anyone except the executives of the large international corporations.

 

This is the one major point where you and I disagree severely Cloud.

Tell this to the US Farmer. About half of the food grown in this country is exported. You wish to cut off these markets, (since there would be retaliatory tariffs or import bans).

This country simply needs to make goods the rest of the world wishes to buy again.

 

The US can't make goods for the rest of the world anymore without lowering the standard of living to that of the Asian countries manufacturing the goods now. It's time to stop worring about the big agri-businesses and worry more about the US citizens. If other countries want to raise food prices for their people, so be it.

 

Ok, Boeing, Walmart, KFC, Coca Cola, McDonalds, etc. There is a LOT of exporting being done, (think of Apple and Google). Those stuck in a mid 20th century mindset thinking only hard consumer goods equal prosperity are a century behind the times in my view.

Yes, good paying manufacturing jobs for semi literate HS dropouts are gone. Sorry but they are. The US still has plenty of great paying jobs, (shortage of employees actually), for educated hard working employees. I see immigrants all of the time who came here with nothing and now are prosperous. This is still the country with the greatest opportunity in the world, and all you are advocating is a crutch for those with no skills to be paid for by every other American. You are basically advocating a tax on us all to be paid for those who refused to do anything in life to qualify them for more than unskilled labor.

Might as well be called Cloud's OTHER welfare tax.

Should the US do more to prevent other nations from taking advantage of us with currency manipulation, duties, etc? Absolutely. We shoudl treat every nation on earth how we are treated. If China manipulates their currency by 50%, then we should have a duty on Chinese goods of 50%. However, to have a duty just to "protect jobs" of those unwilling to gain better job skills I am 100% against.

As long as the playing field is fair the US has nothing to worry about. The fact our gutless politicians do not ensure the playing field is fair is a completely different discussion. Like I said, I would support a duty on Chinese goods, not for your reason but because of the currency manipulation.

 

The difference between us is that you think that it doesn't matter whether or not our fellow citizens without higher education get a job or not as long as there is someone else in the world that can do it. I think America is for the American citizen and that corporations exist for the benefit of citizens and not the way around. I know you are economically well off, but the attitude toward the rest of "let them eat cake" doesn't cut it with me. People aren't lazy because they didn't have the educational opportunities you have. Plus, many Americans with degrees and experience can't get work because it is cheaper for corporations to obtain green cards and bring employees from elsewhere. The dirty little secret that the globalist economists don't want people to know is that tariffs work. Free trade doesn't. The evidence is in and it is irrefutable.