There's an interesting coin story in the news....
ms70
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Something about the U.S. should mint two $1 trillion dollar platinum coins.......
But I'm afraid to post it. 
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Heck, strike a few dozen of them and we won't have to worry about budget deficets, ever again
I saw that story but saw no way to post it without the thread going downhill fast.
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Anyone have change for that? Or is that the cost of a tuna hoagie at the Wawa in Harare. Peace Roy
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Such an endeavor would likely plunge the dollar into an abyss from which there would be no recovery.... it is not a serious consideration. Cheers, RickO
Yes, it is an old trick used at times to satisfy debts. I don’t think anyone would want hyper-inflation on that scale, though.
And what's the difference between taking the seigniorage from the coin or issuing $2 trillion in bonds?? In either case you've expanded the money supply by $2 Trillion.
By the way, I'm not sure why this trick is coming up now. There is no need for such a gimmick if you can just issue bonds. And, in a pinch, they let the Fed by the bonds with freshly printed money. The reason this was proposed a few years ago was because Congress was refusing to raise the debt limit while they tried to work out a budget deal. It was suggested that President Obama, if I recall, could avoid a government shutdown by issuing a $1 trillion platinum coin and crediting the books with the siegniorage.
If you have no debt limit. They can issue as money bonds as they will let the FED purchase.
All comments reflect the opinion of the author, evn when irrefutably accurate.
I don't think this trick has ever been used, has it?
All comments reflect the opinion of the author, evn when irrefutably accurate.
Actually, I don't think it is any different than letting the FED buy bonds. Is it?
All comments reflect the opinion of the author, evn when irrefutably accurate.
@jmlanzaf....I understand your point, however, the concept of the trillion dollar coin would be so radical, I believe it would shock the global economy and the dollar would no longer be the standard....all nations would flee to another economic standard...likely China's.... This is just my opinion, and I am far from being an expert. Cheers, RickO
Just listened to Bernanke, there's so much cash floating around the world, the markets can absorb $1T bond issues like so many ASEs. US savings rates suck, but most of the world has so much in savings, there's no place to put it. He said it's a 40 year trend and even this won't stop it.
Germany in the 1920s is the most famous case to finish paying their reparations to the allies.
Did they actually use the seigniorage? I thought they flat out monetized the debt by printing money. That's a different trick.
All comments reflect the opinion of the author, evn when irrefutably accurate.
Heck, strike a few dozen of them and we won't have to worry about budget deficets, ever again
You think not? I wouldn't bet on it.
I knew it would happen.
That’s basically what I meant earlier. It wasn’t seigniorage but inflation.