Remember the Trillion Dollar Coin...
Exbrit
Posts: 1,252 ✭✭✭✭
I wonder if there will be talk about a 10 trillion dollar coin soon. The Aussies recently had another gimmick - see the below article.
Craig Kelly, described as a “rogue” member of the Australian Parliament who is suspended from Facebook for other antics, came up with a stunt early in May that can possibly find him in violation of Australia’s Copyright Act.
As a protest against the size of the debt in the current government’s budget, he decided to print novelty “1 Trillion Dollar Notes” that have a close similarity to the nation’s current $100 note. Better still, he planned to use his personal government printing allowance, which is part of the budget he protests, to pay for the $1,000 printing cost.
He was trying to make a visual aid for the Australian public representing what a trillion dollars looks like by showing “$1 trillion of government debt in $100 bills,” with diagrams showing how many dozens of pallets of bills it would take. The fake notes were assembled on a pallet and delivered to Parliament, where he then held a press conference.
MP Kelly said on Twitter, “Wouldn’t you love to have this much money? Well you do! This represents close to $1 TRILLION of Federal & State Government net DEBT that YOU & future generations need to pay off.”
...So what is all this debt going to do with the coin market? Will people sell because the stock market crew has to sell to pay off their margin calls once that market has a serious correction - or worse? Or will the government endless spending and printing somehow minimize the pain? Something else???
As Buzz Lightyear might say -- To Infinity and beyond.
Please - no politics, just a discussion on debt and its effects as it relates to the coin market.
Comments
As the amount of debt soars, the government will favor higher inflation as it makes debt repayment easier. Over the last 20-25 years most coins have not outpaced inflation so even nominal gains on paper translate to a loss in real world value when you account for purchasing power. In short, most coins will not be winners long term if your goal is financial investment as opposed purely to blowing discretionary funds on a hobby.
At the rate we’re going we’re going to need a whole roll of trillion dollar coins.
If you are worried about hyperinflation then numismatic coins won't hold their value anywhere near as well as bullion coins.
Yes, I remember a for sure trillion dollar coin. Alas, that's about all I remember from that night.
Agree, but numismatic coins are more fun. I practice the half and half buying strategy.
Wait, my numismatic coins have a bullion value...
I have one of Daniel Carr's trillion dollar tokens, so I am one step ahead.
“Please - no politics, just a discussion on debt and its effects as it relates to the coin market.”
You tried but I fear we are one step away from this falling into the pit of political threads.
Some folks just don’t have enough outlets.
GOOO Bullion!
Politics on a thread started as political? Certainly cannot happen!
Ed. S.
(EJS)
they should mint circulating clad $100 and $1000 coins.
Canada had a million dollar coin
https://mint.ca/store/mint/about-the-mint/million-dollar-coin-1600006
It would not work since they would be heavily counterfeited almost immediately. The average citizen is not an expert coin authenticator.
Worry is the interest you pay on a debt you may not owe.