Home > Main > Funny Money made necessary by Crazy, Evil People

Funny Money made necessary by Crazy, Evil People

July 29, 2011

Let’s face it.  The “Trillion Dollar Coin”  is the most certain option we have now to avoid a default on our debt.  Lot’s of people have talked about it already – some of the readers of this blog are the originators of the idea.

Joe Firestone and beowulf began talking about a huge coin months and months ago.  I have little or nothing to add to the discussion over legality and implementation.

This gigantic coin seems crazy to people.  You can see how people react to it over at CNN.  It’s a partizan divide.

The coin is made necessary because one political party wants to risk destroying our economy.  They would rather push our economy into chaos rather than compromise.  They value balanced budgets more than men and women having jobs.  They would rather see less government spending than a kid able to eat breakfast.

The richest country in human history is being forced to issue a massively valued coin because extremists will not compromise.

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  1. Paul Mineiro
    July 29, 2011 at 9:20 am

    I think they legitimately feel that the federal government is on a runaway debt spiral and that only by going “cold turkey” can the patient be saved. Therefore they are just incorrect, rather than crazy or evil. Since there are prominent academics and intelligent leaders who share their view (e.g., Bill Clinton is smart guy, and he felt running a federal budget surplus was a good idea), this is clearly an easy error to make: it is difficult for people to reconcile their personal experience with money with that of a sovereign currency issuer in the post gold standard era.

  2. TC
    July 29, 2011 at 9:38 am

    They deny empirical and objective reality. We can borrow money today for negative real interest rates. They think we are going broke, but objective reality says the opposite. This is crazy.

    They are trying to impose their will upon people who do not agree with them in a non-democratic manner. This is evil.

    But I do agree with you, they do legitimately think we’re on the wrong track. It’s just that their behavior in response to these thoughts are both crazy and evil.

  3. July 29, 2011 at 10:28 am

    The $1T coin is the power of fiat money in physical form. It shows categorically that a sovereign government cannot be constrained in its spending.

    And that frightens people who can’t understand the accounting, let alone the economics.

  4. gf
    July 29, 2011 at 11:27 am

    I still say the coin should be as small as possible physically, for symbolic value.

    Like half a dimes’ size. Better yet make it nano scale.

    I would like to see Ron Paul’s face when they hauled it in front of congress in a wheelbarrow.

    😉

    • TC
      July 29, 2011 at 11:52 am

      lol! That’s a good one.

    • beowulf
      July 29, 2011 at 2:59 pm

      gf,
      The smallest gold coin the Mint issues is 1/10 an ounce, its about the the size of a dime. And paying $178 for a $1 trillion coin instead of $1780 is a better value for the taxpayer. After all, the President thinks we’re out of money. :o)

      • Clonal Antibody
        July 29, 2011 at 11:11 pm

        Beowulf,

        Could you please go and modify the wiki on the 2011 debt ceiling crisis to elaborate a bit more on the Platinum coin seigniorage and add the relevant links

        The current entry reads as below

        Jack Balkin, the Knight Professor of Constitutional Law and the First Amendment at Yale Law School, besides arguing that the President can invoke Section 4 of the 14th Amendment to solve the crisis (see next section), also suggests two other ways to solve the debt ceiling crisis: he points out that the U.S. Treasury has the power to issue platinum coins in any denomination, so it could solve the debt ceiling crisis by simply issuing two platinum coins in denominations of one trillion dollars each, depositing them into its account in the Federal Reserve, and writing checks on the proceeds. Another way to solve the debt ceiling crisis, Balkin suggests, would be for the Federal Government to sell the Federal Reserve an option to purchase government property for $2 trillion. The Fed would then credit the proceeds to the government’s checking account. Once Congress lifts the debt ceiling, the president could buy back the option for a dollar, or the option could simply expire in 90 days.

        • TC
          July 29, 2011 at 11:13 pm

          we should do it for him.

          beo and Joe were guys early… beo first I think….

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