Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Theater of the Absurd: Administration won't rule out minting $1 trillion platinum coin
American Thinker ^ | 01/10/2013 | Rick Moran

Posted on 01/10/2013 7:23:38 AM PST by SeekAndFind

Much of the last 4 years has been a nightmare for conservatives. But there is a crazy, stupid, absurd idea being seriously discussed in Washington that makes previous nightmares from the White House pale in comparison.

The idea is for the Treasury Department to mint a platinum coin and declare it to be worth $1 trillion. If Congress won't raise the debt ceiling, the coin would be deposited at the Federal Reserve and Obama could continue to spend money.

Congress passed a bill allowing for the minting of platinum coins several years ago. But it was a bill designed to aid investors and collectors. Unfortunately, someone forgot to put in a limit on how much a platinum coin could be minted for. Thus, a gigantic loophole that liberals see as a way to stick to the GOP while spending money as fast as it can be printed.

Is it legal? Partisan constitutional scholar Lawrence Tribe says yes:

"I don't think it makes sense to think about this as some sort of "loophole" issue. Using the statute this way doesn't entail exploiting a loophole; it entails just reading the plain language that Congress used. The statute clearly does authorize the issuance of trillion-dollar coins. First, the statute itself doesn't set any limit on coin value. Second, other clauses of 31 USC §5112 do set such limits, but §5112(k)-dealing with platinum coins-does not. So expressio unius strengthens the inference that there isn't any limit here."

(Excerpt) Read more at americanthinker.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: debt; platinumcoin; trillion; trilliondollarcoin

1 posted on 01/10/2013 7:23:48 AM PST by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind

Lawrence “Lost” Tribe.


2 posted on 01/10/2013 7:27:39 AM PST by massgopguy (I owe everything to George Bailey)
[ Post Reply | Private Reply | To 1 | View Replies]

To: massgopguy

Then why not issue 16 of them and get rid of all of the debt?


3 posted on 01/10/2013 7:30:48 AM PST by garyb
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind

If minting a 1 trillion dollar platinum coin is the end point of Obama economic policy that has failed to produce real wealth, then the Administration will have jumped the shark and be laughed out of office. Chinese must be really happy holding 2 trillion in treasury notes and just can’t wait to trade them in for two of those coins. Delusional and comical , but emblematic of a declining America that consumes more than it produces.


4 posted on 01/10/2013 7:31:29 AM PST by allendale
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

What do democrats do when they aren’t stealing money from taxpayers, tearing down America, trashing Christianity, promoting homosexualism, pedophilia, juvenille sex and abortions?

They dream up schemes like this to bypass and undermine the US Constitution and promote one party tyranny.


5 posted on 01/10/2013 7:34:05 AM PST by Iron Munro (I Miss America, don't you?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: garyb
Then why not issue 16 of them and get rid of all of the debt?

And make them out of chocolate so they have some use.

6 posted on 01/10/2013 7:36:02 AM PST by Iron Munro (I Miss America, don't you?)
[ Post Reply | Private Reply | To 3 | View Replies]

To: SeekAndFind
Okay, then, Mr. Tribe: why stop there?? Let's mint a single 1 Quintillion dollar coin and declare that we have enough money on deposit at the federal reserve for the next 1000 years of Democrat Party chaotic spending. Then mint a second one.

New Democrat mantra: Great power means exercising no responsibility whatsoever.

7 posted on 01/10/2013 7:36:22 AM PST by alancarp (Obama will grab your guns and ship them to Mexican drug mobs.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
Lets look on the bright side ... we only gotta sell 17 of them. Some Saudi friends of his maybe will take this one.

Personally, I might go with a Saint-Gaudens $20 Gold Double Eagle or 1916-1947 silver Walking Liberty half dollars.

I'll pass on the political gimmicks.

8 posted on 01/10/2013 7:36:26 AM PST by K-oneTexas (I'm not a judge and there ain't enough of me to be a jury. (Zell Miller, A National Party No More))
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

What good is minting a coin if you can’t buy anything with it?

And if you COULD buy something with it, what would that “something” be? Congress? Yosemite?
What exactly?

And who would end up “owning” the coin? The People of the United States? The Federal government?

The PRIVATE BANK, the Federal Reserve?

No way this can end up good.


9 posted on 01/10/2013 7:37:06 AM PST by djf (Conservative values help the poor. Liberal values help them STAY poor!!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
The idea is for the Treasury Department to mint a platinum coin and declare it to be worth $1 trillion.

Any of these a$$ clowns familiar with the economic concept of intrinsic value? Let's see... the last time I checked, the current spot price of platinum was around $1,600/ounce, so that coin is going to have to be awfully large. Third world economics espoused by the idiots surrounding a Third World dictator wannabe....

10 posted on 01/10/2013 7:37:19 AM PST by Common Sense 101 (Hey libs... If your theories fly in the face of reality, it's not reality that's wrong.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
So obviously the Treasury has no balance sheet relationship between assets and liabilities. Striking a coin that costs a buck or two somehow puts $1 trillion onto the asset side. No bonds need to be sold, no liabilities need to be debited - poof, more "money" is magically available to spend or pay bills. No inflation adjustments need to be made to indexed obligations like Social Security.

No wonder why Dingy Harry hasn't bothered to approve a budget in 4 years!

11 posted on 01/10/2013 7:40:53 AM PST by uncommonsense (Conservatives believe what they see; Liberals see what they believe.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: allendale
If minting a 1 trillion dollar platinum coin is the end point of Obama economic policy that has failed to produce real wealth, then the Administration will have jumped the shark and be laughed out of office.

In order for laughter to ensue, the audience needs to comprehend the joke. The end result will be much like an obscure, highbrow Dennis Miller joke.

12 posted on 01/10/2013 7:42:45 AM PST by 03A3
[ Post Reply | Private Reply | To 4 | View Replies]

To: SeekAndFind

I think it is a great idea. When someone wants to buy a loaf of bread I can charge people to haul a mountain of $100 bills in my pickup for them so they can make that purchase.

My charge would be a handful of those chocolate coins another poster mentioned. At least the chocolate has a bit of intrinsic value.


13 posted on 01/10/2013 7:48:58 AM PST by FerociousRabbit
[ Post Reply | Private Reply | To 1 | View Replies]

To: Common Sense 101

“…intrinsic value? Let’s see... the last time I checked, the current spot price of platinum was around $1,600/ounce, so that coin is going to have to be awfully large.”

We have fiat currency. That means that everybody agrees that it’s “worth” the value printed on it. (What that “value” will actually buy is a different matter.) I’m guessing that there’s a legal limit on the values you can place on paper currency. I know they did away with the $500 bill, likewise the $1,000 and the $10,000. These notes were originally used to satisfy debts between banks and not for general circulation, except the $500. They did away with that one to stop drug lords from easily moving huge sums. (Europe created a $500 pound EU bill because money held outside the system by drug lords is essentially an interest free loan for that amount.)

But the point of the platinum coin law was Congress didn’t set a limit on the fiat agreed “value.” So, why not just make a million, billion, trillion dollar coin and be done? No debt limit. No negotiations, just infinite spending.

I don’t think this would make it through the current Supreme Court. But it would give Obama some political theater and he could again blame the Republics for interrupting the flow of Obama phones and EBT cards.


14 posted on 01/10/2013 7:49:31 AM PST by Gen.Blather
[ Post Reply | Private Reply | To 10 | View Replies]

To: SeekAndFind

I can’t think of a better symbol for the hyperinflation ahead than a trillion dollar coin. The administration has signaled its intentions to write off the public debt by inflating the dollar’s value to virtually nothing. Those bass turds are totally bankrupt — spiritually, morally, fiscally.

I advise everyone to flee paper and invest in tangible assets, such as gold, land, ammo, tools and food.


15 posted on 01/10/2013 7:57:04 AM PST by TexasRepublic (Socialism is the gospel of envy and the religion of thieves)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Gen.Blather

I was being somewhat facetious. On a side note... I believe the law these sociopaths are referring to pertains to the minting of commemerative coins of nominal value, and NOT intended for the perverted purpose forwarded by the libtards.


16 posted on 01/10/2013 7:58:05 AM PST by Common Sense 101 (Hey libs... If your theories fly in the face of reality, it's not reality that's wrong.)
[ Post Reply | Private Reply | To 14 | View Replies]

To: SeekAndFind

They debate the legal ‘loophole’ aspect of this but say nothing about whether or not it makes even a shred of economic sense. Again, the game is to beat the Republicans. The welfare of the country as a whole be damned.


17 posted on 01/10/2013 8:00:38 AM PST by fhayek
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

So exactly how is minting a single coin valued at one trillion dollars different from just printing one trillion dollar paper bills?

It isn’t!


18 posted on 01/10/2013 8:04:38 AM PST by diverteach (If I find liberals in heaven after my death.....I WILL BE PISSED!!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: diverteach

This exposes their real intentions. They would LOVE to print a trillion dollars of extra paper money, but they are prohibited from doing so. But, if you do the exact same thing with a precious metal coin, you can skirt the law. Robert Mugabe would be so proud.


19 posted on 01/10/2013 8:11:01 AM PST by fhayek
[ Post Reply | Private Reply | To 18 | View Replies]

To: diverteach
So exactly how is minting a single coin valued at one trillion dollars different from just printing one trillion dollar paper bills?

It's different because Congress passed a law allowing the treasury to mint platinum coins in whatever denomination it wanted -- with no limit. There is no such law for any other kind of currency.

The law was a small measure intended to allow the treasury to mint collectable platinum coins. This actually generates revenue from coin collectors who buy such things.

Exploiting this law is a political stunt. If I were Obama, I'd be really worried about this backfiring. If they do the coin stunt, it will almost certainly end up in the courts.

On the other hand, there is some worry that it won't backfire and that it will be look upon as a "bold" move that Obama had to take because Congress is completely gridlocked. I think we can all agree that this would be a seriously bad outcome.

20 posted on 01/10/2013 8:40:01 AM PST by Mr. Know It All
[ Post Reply | Private Reply | To 18 | View Replies]

To: Common Sense 101

Yes. Isn’t this what the dictators in African countries do? Print money in outrageous denominations, and it ends up as worthless paper.


21 posted on 01/10/2013 8:42:52 AM PST by PhiloBedo (You gotta roll with the punches and get with what's real.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: Iron Munro

How about if I pay my taxes using a “coin” I create that I claim is worth whatever I want it to be worth?

Reminds me of a saying: “I can’t be out of money in my account; I still have checks!”


22 posted on 01/10/2013 8:43:05 AM PST by butterdezillion
[ Post Reply | Private Reply | To 6 | View Replies]

To: fhayek

Screw it. I’m buying seeds.


23 posted on 01/10/2013 8:45:05 AM PST by EQAndyBuzz (Want freedom? Think WWRRD? Then do it.)
[ Post Reply | Private Reply | To 19 | View Replies]

To: SeekAndFind
"I don't think it makes sense to think about this as some sort of "loophole" issue

So, this isn't a loophole - but businesses that are dropping employees and hours because of Obamacare is a loophole. Got it.

24 posted on 01/10/2013 8:52:56 AM PST by mykroar ("I'm afraid I can't use a mule. I have several hundred up on Capitol Hill." - Ronald Reagan)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Common Sense 101
...the last time I checked, the current spot price of platinum was around $1,600/ounce, so that coin is going to have to be awfully large.

That's OK, Nancy and Harry will just deem it minted!

See how easy running gubmint is?

25 posted on 01/10/2013 8:54:49 AM PST by capydick (''Life's tough.......it's even tougher if you're stupid.'')
[ Post Reply | Private Reply | To 10 | View Replies]

To: SeekAndFind
"The idea is for the Treasury Department to mint a platinum coin and declare it to be worth $1 trillion."

Only Congress has the power to coin money and set the value of such money. But the socialist Obama and his Democrat Party won't let that stand in their way:


Some of Section 8 of the Constitution:

"The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

To borrow Money on the credit of the United States;

To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;

To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;

To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

26 posted on 01/10/2013 9:00:06 AM PST by StormEye
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

And soon, only three of them will buy you a loaf of bread.


27 posted on 01/10/2013 9:01:58 AM PST by DPMD
[ Post Reply | Private Reply | To 1 | View Replies]

To: capydick

Oh gosh...please don’t give them any ideas!


28 posted on 01/10/2013 9:05:49 AM PST by TGIAO
[ Post Reply | Private Reply | To 25 | View Replies]

To: SeekAndFind

A coin worth 1 trillion on paper,only he can think like that.
Warm up the rubber room he’s ready.


29 posted on 01/10/2013 9:34:55 AM PST by Vaduz
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
Wouldn't it be cheaper to use copper?

You have to hand it to them. Platinum is a nice touch. Great way to win over the low information voters.

30 posted on 01/10/2013 9:57:38 AM PST by St_Thomas_Aquinas
[ Post Reply | Private Reply | To 1 | View Replies]

To: St_Thomas_Aquinas

Current price for Platinum is $1630.00 per ounce!
That’s gonna be one huge coin!


31 posted on 01/10/2013 10:28:34 AM PST by Conserev1
[ Post Reply | Private Reply | To 30 | View Replies]

To: Mr. Know It All
If they do the coin stunt, it will almost certainly end up in the courts.

Any chance it'll cause our credit rating to get cut?

32 posted on 01/10/2013 10:37:35 AM PST by tacticalogic ("Oh, bother!" said Pooh, as he chambered his last round.)
[ Post Reply | Private Reply | To 20 | View Replies]

To: tacticalogic
Any chance it'll cause our credit rating to get cut?

Any chance it won't? Even if it doesn't happen, if this ludicrous proposal gets any serious traction then we will see all commodities spike in price and a refusal of foreigners to buy our Treasuries at all. Then we'll be stuck with the Fed buying our debt (i.e. monetizing).

Oh, yeah, we're already monetizing to the extent of $85 billion/month. I guess that Maobama just decided that a quick poison is better than a slow one.

33 posted on 01/10/2013 10:53:08 AM PST by Ancesthntr (Banning guns to prevent crime is like banning cars to prevent drunk driving.)
[ Post Reply | Private Reply | To 32 | View Replies]

To: tacticalogic
Any chance it'll cause our credit rating to get cut?

Not directly. Our credit rating is based on us paying our bills. Since our bills are all in US Dollars, it doesn't matter how worthless they are for that purpose. If our bills were in Euros and the dollar plunged to $1000 to the Euro, we'd be in huge trouble.

Of course, if our currency crashed due to hyperinflation, we'll have all kinds of other problems which will probably lead to a loss of credit rating.

I've read some claims that this coin trick won't lead to hyper-inflation, but I just don't buy it. Maybe it's that I don't understand the complexities of the economics, but it sure seems like a bad idea from a monetary policy standpoint.

34 posted on 01/10/2013 11:07:45 AM PST by Mr. Know It All
[ Post Reply | Private Reply | To 32 | View Replies]

To: djf

“And if you COULD buy something with it, what would that “something” be? Congress? Yosemite?
What exactly?”

I seriously expect that the time may come in the nation’s history when the selling off of national parks like Yosemite (for astronomical sums of cash, of course) may actually be considered as a last-ditch effort to raise revenue.

I’m sure the Chinese or Saudis would be interested, if those properties became available...


35 posted on 01/10/2013 11:14:10 AM PST by Road Glide
[ Post Reply | Private Reply | To 9 | View Replies]

To: Mr. Know It All

If they can make two of them today, they can just as easily make 200 next month, on a whim. I’d think that would give creditors cause for concern.


36 posted on 01/10/2013 11:33:49 AM PST by tacticalogic ("Oh, bother!" said Pooh, as he chambered his last round.)
[ Post Reply | Private Reply | To 34 | View Replies]

To: tacticalogic
If they can make two of them today, they can just as easily make 200 next month, on a whim. I’d think that would give creditors cause for concern.

The whole point of this weird idea is to avoid an official raising of the debt ceiling (by paying ourselves with an IOU -- I really don't get how this is supposed to work). Anyway, debt ceiling raises are typically less than $1 trillion although the last one was $2 trillion. The idea is that we'll only need one coin -- at least this year.

200 coins is "not going to happen," according to people who think it makes sense for 1 coin to happen. I think they fully intend that to be true, but once we've taken the trip into downtown crazyville, who knows...

37 posted on 01/10/2013 11:48:11 AM PST by Mr. Know It All
[ Post Reply | Private Reply | To 36 | View Replies]

To: Mr. Know It All
200 coins is "not going to happen," according to people who think it makes sense for 1 coin to happen.

Seems like every time those people tell us something's not going to happen, it does.

38 posted on 01/10/2013 11:53:37 AM PST by tacticalogic ("Oh, bother!" said Pooh, as he chambered his last round.)
[ Post Reply | Private Reply | To 37 | View Replies]

To: SeekAndFind

If the federal gubmint of the US resorts to inflationary financing on that scale to pay its bills, then there will be an unparalleled global depression, an economic ww2, from the resulting hyperinflationary spiral.


39 posted on 01/10/2013 12:20:43 PM PST by LifeComesFirst (http://rw-rebirth.blogspot.com/)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson