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Too bad, no trillion dollar coin

Steve27Steve27 Posts: 13,274 ✭✭✭
in Precious Metals
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Maybe they'll mint 1,000 Billion dollar coins instead?
"It's far easier to fight for principles, than to live up to them." Adlai Stevenson

Comments

  • derrybderryb Posts: 36,790 ✭✭✭✭✭
    "The (trillion dollar coin) scheme exposes the forty year-old charade, otherwise known as the global monetary system, better than any mind-exercise we have been able to come up with." - Zero Hedge

    Zero Hedge supspects that Japan is working on a trillion yen pair of chopsticks. image

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • OverdateOverdate Posts: 7,007 ✭✭✭✭✭
    As a practical matter, what's the difference between (a) minting a trillion dollar coin, or (b) "borrowing" a trillion dollars from the Federal Reserve, which then returns the interest on the "loan" back to the U.S. Treasury?

    My Adolph A. Weinman signature :)

  • rickoricko Posts: 98,724 ✭✭✭✭✭
    A ridiculous scheme in the first place and would never have passed a Constitutional review. Cheers, RickO
  • Steve27Steve27 Posts: 13,274 ✭✭✭


    << <i>A ridiculous scheme in the first place and would never have passed a Constitutional review. Cheers, RickO >>



    "Harvard Law Professor Laurence Tribe endorses the legality of the trillion dollar coin option:

    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.

    Tribe acknowledges that Congress didn't write the statute with the idea in mind that it would be used for this purpose, but given that the language is utterly clear and completely unambiguous, he says Congressional intent is irrelevant. Moreover:

    It’s also quite clear that the minting of such a coin couldn’t be challenged; I don’t see who would have standing.

    Tribe's bottom line is that the question isn't whether or not minting a trillion dollar coin is a viable legal option—it's whether minting a trillion dollar coin is a good idea. That's a question the administration will only need to answer if Republicans follow through on their debt limit bluff, but given that they'd be choosing between (a) avoiding getting mocked by Republican hacks for minting a coin or (b) avoiding national default and the resultant economic damage, it seems like a question with a pretty simple answer. "
    "It's far easier to fight for principles, than to live up to them." Adlai Stevenson
  • johnny9434johnny9434 Posts: 28,303 ✭✭✭✭✭
    thats no great loss.
  • PerryHallPerryHall Posts: 46,111 ✭✭✭✭✭
    If the gov pulled this stunt, what would that do to our credibility in the world of finance? How would that effect our credit rating? We'd become the laughing stock of the world.

    Worry is the interest you pay on a debt you may not owe.
    "Paper money eventually returns to its intrinsic value---zero."----Voltaire
    "Everything you say should be true, but not everything true should be said."----Voltaire

  • OverdateOverdate Posts: 7,007 ✭✭✭✭✭
    We have credibility in the world of finance?

    My Adolph A. Weinman signature :)

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