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Can a $1 Trillion Coin End Debt Ceiling Crisis?
Yahoo ^

Posted on 01/04/2013 6:27:47 PM PST by Red in Blue PA

What if the threat of a voluntary default by the United States could be erased by simply turning one tiny scrap of platinum into a coin?

That's right. No debt ceiling problem. No bickering in Congress. No market jitters. The only thing needed is for the Treasury Department to mint a platinum coin with a face value of $1 trillion.

----

If Congress does not act to raise the debt ceiling, the U.S. will default on its debts. Not good. But this is where the platinum coin comes in. Normally, the Federal Reserve is charged with issuing currency. But U.S. law, specifically 31 USC § 5112, also grants Treasury permission to "mint and issue platinum bullion coins and proof platinum coins."

This section of law was meant to allow for the printing of commemorative coins and the like. But the Treasury Secretary has the authority to mint these coins in any denomination he or she sees fit.

With a $1 trillion coin in hand, Treasury could deposit the money into Fed accounts, and pay its debts in that manner, instead of relying on bond issuance.

And none of this requires Congressional consent. Talk about an elegant solution.

The White House unsurprisingly hasn't commented on the idea. But Rep. Jerrold Nadler is on board. "I'm being absolutely serious," he told Capital NY. "It sounds silly but it's absolutely legal."

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: News/Current Events
KEYWORDS: bananarepublic; debt; fiscalcliff; obama; trilliondollarcoin

1 posted on 01/04/2013 6:27:52 PM PST by Red in Blue PA
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To: Red in Blue PA

I honestly don’t know what to make of this story. Satire? Stupidly? WTH?


2 posted on 01/04/2013 6:30:18 PM PST by DManA
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To: Red in Blue PA

The only thing that will fix the federal finances is for Congress to live within its means. Everything else is just putting off the inevitable crash.


3 posted on 01/04/2013 6:30:36 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: Red in Blue PA

Pull your money out of one pocket to pay the other, Yep that will work...


4 posted on 01/04/2013 6:33:12 PM PST by jafojeffsurf (Return to the Constitution)
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To: Red in Blue PA

The Magic Negro couldn’t do it, so maybe a Magic Denarius can.


5 posted on 01/04/2013 6:34:21 PM PST by E. Pluribus Unum ("More law, less justice." --Cicero)
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To: Red in Blue PA

This is the end, beautiful friend
This is the end, my only friend, the end
Of our elaborate plans, the end
Of everything that stands, the end
No safety or surprise, the end


6 posted on 01/04/2013 6:36:01 PM PST by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both)
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To: DManA

Perhaps they could give a few of these coins to the Chinese as payment of the debt. I’m sure that would work just fine. Not.


7 posted on 01/04/2013 6:36:14 PM PST by mkmensinger
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To: DManA

Why not just make 10,000 of those things and make everyone a millionaire!

DC.....the place where logic goes to die.


8 posted on 01/04/2013 6:36:39 PM PST by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: jafojeffsurf

Print 1000 of them, pay off every debt and give every family in America 20 million dollars each.

End of problems.


9 posted on 01/04/2013 6:38:50 PM PST by EQAndyBuzz (You can't bring something to its knees that refuses to stand on its own)
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To: Red in Blue PA

“CNN Money”.

Lol


10 posted on 01/04/2013 6:38:55 PM PST by Psycho_Bunny (Thought Puzzle: Describe Islam without using the phrase "mental disorder" more than four times.)
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To: Red in Blue PA

——If Congress does not act to raise the debt ceiling, the U.S. will default on its debts-——

Fundamentally not true.... The government has a constant stream of revenue from taxes....

We just spend more than we take in...pay the debt first....then fund whatever programs are the most important...

Yea....I know it takes adults to actually make these tough decisions....


11 posted on 01/04/2013 6:42:10 PM PST by JZoback
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To: Red in Blue PA

Someone commented yesterday,,, freakin’ 3 year olds are now running our economy.


12 posted on 01/04/2013 6:43:39 PM PST by DesertRhino (I was standing with a rifle, waiting for soviet paratroopers, but communists just ran for office.)
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To: BenLurkin
Invest in:











NOT:


13 posted on 01/04/2013 6:43:39 PM PST by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: Red in Blue PA

It’s called treason!!!

Execute everyone at the Fed id they try it!


14 posted on 01/04/2013 6:48:03 PM PST by dalereed
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To: Red in Blue PA

If such a maneuver was possible and legal, I imagine the end result would be massive inflation. It would be devastating for the older people who are on fixed incomes.


15 posted on 01/04/2013 6:50:17 PM PST by Taxbilly
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To: Red in Blue PA

Just like making the minimum wage $1,000,000 per year will end poverty.


16 posted on 01/04/2013 6:53:44 PM PST by dynachrome (Vertrou in God en die Mauser)
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To: Red in Blue PA

Liberalism is a (dangerous) mental disorder.


17 posted on 01/04/2013 6:55:12 PM PST by rockrr (Everything is different now...)
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To: EQAndyBuzz

That is the key to the theft that is taking place, It would then cost 1/2 trillion for a loaf of bread overnight. But all that fake money that was out there before that night and all those things purchased with it then becomes the booty of those banks and insiders while avg Joe is left standing there saying what just happen. Of course avg Joe ain’t going to stand there long, hes going to want BLOOD. This will not end well.


18 posted on 01/04/2013 7:00:29 PM PST by jafojeffsurf (Return to the Constitution)
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To: Red in Blue PA

At the very least they should put Robert Mugabe’s face on it.


19 posted on 01/04/2013 7:03:44 PM PST by Stosh
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To: Stosh

I’m thinking Marx’s face for the coin.


20 posted on 01/04/2013 7:07:09 PM PST by corlorde (forWARD of the state)
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To: Red in Blue PA

Seriously. I think I saw this on an episode of the Simpsons. Mr. Burns had a billion or trillion dollar bill and Fidel Castro stole it.
Anyone see that one?


21 posted on 01/04/2013 7:07:41 PM PST by NEWwoman (God Bless America)
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To: Red in Blue PA
Just a simple question... If congress were to have 16 or so "trillion dollar" coins minted, stamped with "backed by the full faith & credit of the US government," just who would have any faith in the "credit" of a government that just erased all their current debt... This would be "quantitative easing" on a scale never seen before, and would completely debase the US currency. This is "wave a dead chicken over your head" stuff, and presto, no debt!

So of course, Nadler would be behind it.

Mark

22 posted on 01/04/2013 7:12:47 PM PST by MarkL (Do I really look like a guy with a plan?)
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To: Red in Blue PA
What if the threat of a voluntary default by the United States could be erased by simply turning one tiny scrap of platinum into a coin

Why waste money on platinum? Can't they use paper?

23 posted on 01/04/2013 7:12:55 PM PST by Age of Reason
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To: Red in Blue PA
Under the Rules of Distribution and according to the Grand Naggus of Ferrenga, Obamma it can. </ ridicule >
24 posted on 01/04/2013 7:14:22 PM PST by SandRat (Duty - Honor - Country! What else needs said?)
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To: jafojeffsurf
Pull your money out of one pocket to pay the other,

They've been doing that for some time now, which is why the Fed now owns the majority of Treasury securities.

This is simply "Presto, change-o! The debt is GONE!"

Anybody wonder what this will do to the "full faith & credit" of any US currency or security?

Mark

25 posted on 01/04/2013 7:16:07 PM PST by MarkL (Do I really look like a guy with a plan?)
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To: Red in Blue PA
A giant rubber coin might be more appropriate...


26 posted on 01/04/2013 7:21:49 PM PST by Sooth2222 ("Suppose you were an idiot. And suppose you were a member of congress. But I repeat myself." M.Twain)
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To: corlorde

I’m thinkin obama’s a$$.


27 posted on 01/04/2013 7:32:38 PM PST by duffee (Newt Gingrich for Speaker)
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To: Red in Blue PA

Of course the coin can end our problems. As long as we find some idiot willing to believe that it is worth a trillion. That is the nature of fiat money.


28 posted on 01/04/2013 7:33:23 PM PST by ABQHispConservative (Only fake Christians vote or are Democrats.)
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To: mkmensinger

The Chinese, having put dollars of value into treasuries will not be pleased. The only one who has bought worthless securities with worthless dollars is the Fed.

This absurdity should have DumBO’s face on one side and his turd on the other, so, anyone receiving it will be dumped on.


29 posted on 01/04/2013 7:37:46 PM PST by depressed in 06 (America conceived in liberty, dies in slavery.)
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To: mkmensinger

“Perhaps they could give a few of these coins to the Chinese as payment of the debt. I’m sure that would work just fine. Not.”

The Chinese have stopped buying our debt. That’s the real reason the Fed is printing money to buy Treasury debt. If the Fed wasn’t buying, interest rates would be soaring.


30 posted on 01/04/2013 7:38:27 PM PST by Soul of the South
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To: Red in Blue PA

Currency just divides up the wealth of those holding that currency. Issuing more by fiat just rearranges the distribution, diminishing the holdings and imputing the variance to the new currency.

Total cash is somewhere around 3 trillion dollars. Issuing a trillion dollar coin serves only to devalue the aforementioned cash by 33% and teleport that value to the new coin’s holders. It may satisfy the letter of law and contract, but is no more than theft. Grand theft, unpunished (nay, facilitated) by law, leads us to violent retribution - let us not go there.


31 posted on 01/04/2013 7:46:21 PM PST by ctdonath2 (End of debate. Your move.)
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To: Red in Blue PA
I can do better than that!

I'll even let 'em keep the change! :-P

32 posted on 01/04/2013 7:47:07 PM PST by uglybiker (nuh-nuh-nuh-nuh-nuh-nuh-nuh-nuh-nuh-nuh-nuh-nuh-nuh-nuh-nuh-nuh-BATMAN!)
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To: Soul of the South

I hope you realize the Federal Reserve is a private bank. It is like China which used to buy our debt. A separate entity from the Federal Gov’t


33 posted on 01/04/2013 7:55:44 PM PST by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: Red in Blue PA

How long before said platinum coins won’t buy a pair of shoelaces?


34 posted on 01/04/2013 7:57:20 PM PST by ProtectOurFreedom
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To: DManA

No. They’re serious.

You see, what they want to do is create some fiat currency to deposit with the fiat-currency creators, so that the fiat-currency creators can chalk it up as an asset and the fiat-currency coin can be used as an asset to pay down the debt caused by the fiat-currency creators and those who obtain and increase power by giving the OK to fiat-currency creators to create more fiat currency, so that those in power have fiat currency to spend in order to buy votes.

It makes perfect sense in an economy that uses fiat currency and fractional-reserve banking as its monetary policy.


35 posted on 01/04/2013 8:11:24 PM PST by Ghost of Philip Marlowe (Prepare for survival.)
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To: Red in Blue PA

Got a whole stack of 1Trillion Zimbabwe dollars for them to try.

The protest in Zimbabwe was when people at night went out and glued these on public buildings like wallpaper— they were worth so little.

So, NO two coins won’t “do” it. Nor will it stop spending before ceiling is reached, which is the real cause. That and keynesian bs.


36 posted on 01/04/2013 8:11:53 PM PST by John S Mosby (Sic Semper Tyrannis)
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To: Red in Blue PA
why not simply print a Trillion Dollar Bill??? same/same, neither is of any value...
37 posted on 01/04/2013 8:22:00 PM PST by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: Red in Blue PA

A Trillion dollar coin that contained 1 trillion in platinum at the current value of the metal would require more platinum than has ever been mined.

Minting a coin which in which the face value does not reasonably reflect, when issued, the value of the metal in it is either counterfeiting or it has no more value than a paper dollar.


38 posted on 01/04/2013 8:32:30 PM PST by verklaring (Pyrite is not gold))
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To: Red in Blue PA
Hey, I recognize this game. I played it all summer growing up.


39 posted on 01/04/2013 8:38:34 PM PST by 444Flyer (Genesis 12:3)
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To: Red in Blue PA

“Can a $1 Trillion Coin End Debt Ceiling Crisis?”

Is this the best “funny money” ya ever heard of, or what?


40 posted on 01/04/2013 8:44:39 PM PST by Road Glide
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To: Red in Blue PA
These are just as good. These are IOUs.

Lloyd, 'Dumb and Dumber'
41 posted on 01/04/2013 8:50:02 PM PST by Tzimisce (The American Revolution began when the British attempted to disarm the Colonists.)
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To: Red in Blue PA
Yes.
That will fix everything just fine.
Why didn't they think of this brilliant plan sooner.


42 posted on 01/05/2013 1:06:14 AM PST by Bon mots (Abu Ghraib: 47 Times on the front page of the NY Times | Benghazi: 2 Times)
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To: Jonty30
The only thing that will fix the federal finances is for Congress to live within its means. Everything else is just putting off the inevitable crash.

It is too late to fix this mess by simply living within ones means.

The total debt including off-balance-sheet debt is now approximately $90Trillion, while total revenue forcefully taken by the IRS is only some $2.5Trillion.

Total IRS Revenues are now ENTIRELY eaten up by entitlements with nary a cent left for debt reduction nor even military expenses.

Where are we headed?


A good roadmap for where we are headed is something like what happened to Weimar Germany. The background was a bit different - Germany's debt was war reparations imposed by the victors of WWI, but the path ahead is the same, albeit on a global scale this time.

Anyone who doubts it needs to read the brilliant book, "When Money Dies" by Adam Fergusson.

You can click on the book below to get it from Amazon:

Download it for free here!

When Money Dies: The Nightmare of the Weimar Collapse

This book was out of print for a while, but now is being reissued. If you are interested, I suggest you grab the free e-book above while it lasts, as it will likely soon disappear since the book has gone back into print.

:)

Of course you can always buy a bookshelf copy from Amazon as it's cheap enough.

43 posted on 01/05/2013 1:40:39 AM PST by Bon mots (Abu Ghraib: 47 Times on the front page of the NY Times | Benghazi: 2 Times)
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To: Red in Blue PA

Quite possibly they are serious... and if so it highlights a peculiarly Inner Beltway delusion: that the “Debt Ceiling” is something that can be fixed by law or regulation. The reason for a ‘legal’ debt ceiling is to avoid the debt ceiling that really counts: the one imposed by bond and currency markets. When the ‘legal’ debt ceiling loses credibility through stunts like this proposal, the US dollar and US debt denominated in dollars will be discounted just like the debt of fiscally incontinent European states like Greece, Portugal, Italy, and Spain.

A review of 20th century examples: http://www.globalfinancialdata.com/news/Articles/Century_of_Inflation.doc
http://www.globalfinancialdata.com/news/Articles/Century_of_Inflation.doc


44 posted on 01/05/2013 2:54:26 PM PST by Blue_Ridge_Mtn_Geek
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