arfink Posted January 10, 2013 Share Posted January 10, 2013 I have been hearing much hot air being blown around about trillion dollar coins. I don't get it. What is this proposal meant to do? Many on the right are freaking out about the idea. I mean, it's blatantly inflationary, and will likely drive the gold-standard people mad. However, I am reminded of Larry Burkett's notion (now many years old, as published in his book "The Coming Economic Earthquake") that such a tactic would be the only way to throw off the Fed. Basically to inflate the currency just enough to really break their business. Why abolish the Fed when you can just bankrupt them? Just go to them and say "Hey, here's your money, we printed it. Have a nice flooping rest of your life." However, I get the feeling that's not what is being proposed with this whole platinum coin thing. Link to comment Share on other sites More sharing options...
Era Might Posted January 10, 2013 Share Posted January 10, 2013 I have one. Al Gore is the face on the coin. Link to comment Share on other sites More sharing options...
dairygirl4u2c Posted January 10, 2013 Share Posted January 10, 2013 i think even the trillion dollar coin proponents would say it should only be done as a last resort.... and that it shouldn't be done over and over, if possible. that is, if the politicians can't agree on a sensible budget and/or won't increase the debt limit.... they have no choice but to print the coin. the US defaulting on its debt could be devastating and a printed coin is just a loophole for the time being. i've been reading the proponents on the matter, and that seems to eb the idea, for those who can be taken seriously, and most of em. (almost no one thinks they should just coin 16 trillion dollar coins or make everyone trillionaires etc) Link to comment Share on other sites More sharing options...
arfink Posted January 10, 2013 Author Share Posted January 10, 2013 Ah, so they are not planning to overthrow the Fed by exploiting this loophole. A pity. Link to comment Share on other sites More sharing options...
Groo the Wanderer Posted January 10, 2013 Share Posted January 10, 2013 In for three! oh. thought this was woot.com durn Link to comment Share on other sites More sharing options...
Fidei Defensor Posted January 10, 2013 Share Posted January 10, 2013 The Federal Reserve is essentially in charge of our money. And we can't just print more (for obvious as well as legal reasons.) However, the Treasury CAN issue platinum coinage of any denomination. Basically, to avoid a political fight over the debt ceiling (for now), the Treasury can mint a Trillion dollar coin, deposit it with the Federal Reserve and give them the money to keep us from defaulting on our debt. Is it smart? Depends. Short term, maybe. Long term, not a chance. Link to comment Share on other sites More sharing options...
arfink Posted January 10, 2013 Author Share Posted January 10, 2013 The Federal Reserve is essentially in charge of our money. And we can't just print more (for obvious as well as legal reasons.) However, the Treasury CAN issue platinum coinage of any denomination. Basically, to avoid a political fight over the debt ceiling (for now), the Treasury can mint a Trillion dollar coin, deposit it with the Federal Reserve and give them the money to keep us from defaulting on our debt. Is it smart? Depends. Short term, maybe. Long term, not a chance. They are essentially in charge of our money, yes, but it's insane that we continue to allow it. They are a private entity, and always have been. If it was up to me, I'd say we could mint the whole 16 trillion now, and bankrupt the Fed so they can't backstab us. If we just do one trillion I think it'd be horribly un-smart, as it would completely undermine their trust of the US currency while not hurting them enough to cripple them. Link to comment Share on other sites More sharing options...
Fidei Defensor Posted January 10, 2013 Share Posted January 10, 2013 They are essentially in charge of our money, yes, but it's insane that we continue to allow it. They are a private entity, and always have been. If it was up to me, I'd say we could mint the whole 16 trillion now, and bankrupt the Fed so they can't backstab us. If we just do one trillion I think it'd be horribly un-smart, as it would completely undermine their trust of the US currency while not hurting them enough to cripple them. No matter what they do, they are essentially minting a coin to create money that isn't there to pay the Federal Reserve so that they can keep paying our debts (you know, with money that isn't there.) Link to comment Share on other sites More sharing options...
4588686 Posted January 10, 2013 Share Posted January 10, 2013 No matter what they do, they are essentially minting a coin to create money that isn't there to pay the Federal Reserve so that they can keep paying our debts (you know, with money that isn't there.) No money is ever really there. Link to comment Share on other sites More sharing options...
arfink Posted January 10, 2013 Author Share Posted January 10, 2013 No matter what they do, they are essentially minting a coin to create money that isn't there to pay the Federal Reserve so that they can keep paying our debts (you know, with money that isn't there.) No, my idea is, we mint the 16 trillion in order to get the Fed off the government legally, and then don't go to them for more loans again. Ever. Link to comment Share on other sites More sharing options...
4588686 Posted January 10, 2013 Share Posted January 10, 2013 No, my idea is, we mint the 16 trillion in order to get the Fed off the government legally, and then don't go to them for more loans again. Ever. If you want to abolish the federal reserve you could just do it. You don't have to pay them. Link to comment Share on other sites More sharing options...
Fidei Defensor Posted January 10, 2013 Share Posted January 10, 2013 No money is ever really there. Well, yes. Confidence in the currency is the only thing that gives it value. However, pulling such a huge amount of money out of thin air brings even more attention to that fact. Link to comment Share on other sites More sharing options...
4588686 Posted January 10, 2013 Share Posted January 10, 2013 Well, yes. Confidence in the currency is the only thing that gives it value. However, pulling such a huge amount of money out of thin air brings even more attention to that fact. That's basically what happened in 2008. So I don't see the harm in bringing attention to something that I think everybody basically understands. Link to comment Share on other sites More sharing options...
Fidei Defensor Posted January 10, 2013 Share Posted January 10, 2013 That's basically what happened in 2008. So I don't see the harm in bringing attention to something that I think everybody basically understands. Not arguing with that :P I just find it so disturbing that i have to pay all my bills and be good with my money while the government can just pull it out of their butt and call it good. Link to comment Share on other sites More sharing options...
4588686 Posted January 10, 2013 Share Posted January 10, 2013 Not arguing with that :P I just find it so disturbing that i have to pay all my bills and be good with my money while the government can just pull it out of their butt and call it good. Excellent. So we all agree that it's time to move beyond capitalism. Link to comment Share on other sites More sharing options...
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