Obama's Trillion Dollar Coin Option

[chemgator]

http://www.usnews.com/opinion/blogs/...the-laugh-test

It turns out that, legally speaking, Obama has the authority to mint platinum coins and assign them any value that he deems necessary. Apparently, there is talk of him minting some trillion dollar coins and depositing them with the Federal Reserve, which will instantly give him the ability to raise the debt ceiling (or lower the floor on the value of a dollar). I would think that even hard-core liberals would be bright enough to see why this is a bad idea.

[wgbgator]

Its a better idea than defaulting.

[Matthanuf06]

Originally Posted by wgbgator

Its a better idea than defaulting.

We wouldn't default. The govt would shut down but we'd be able to pay our legally owed bills

[g8trjax]

Originally Posted by chemgator

http://www.usnews.com/opinion/blogs/...the-laugh-test

It turns out that, legally speaking, Obama has the authority to mint platinum coins and assign them any value that he deems necessary. Apparently, there is talk of him minting some trillion dollar coins and depositing them with the Federal Reserve, which will instantly give him the ability to raise the debt ceiling (or lower the floor on the value of a dollar). I would think that even hard-core liberals would be bright enough to see why this is a bad idea.

I think you would be incorrect. Hard cores will do anything to keep the ponzi scheme alive.

[gator996]

Tell that to the military veterans who who wouldn't get their govt funding & benefits

Shutting down the govt is defaulting on the obligations we've committed to paying already

[wgbgator]

Originally Posted by Matthanuf06

We wouldn't default. The govt would shut down but we'd be able to pay our legally owed bills

For a short time anyways. Nevermind that when the gov't shuts down, SS checks arent going out, fed employees don't get paid, etc.

[Matthanuf06]

Originally Posted by wgbgator

For a short time anyways. Nevermind that when the gov't shuts down, SS checks arent going out, fed employees don't get paid, etc.

If that what it takes to get the left to realize we have a spending problem, then so be it

[G8trGr8t]

But if Democrats were reasonable about cuts and deficit reduction coins nor shutdowns would be required but they do not want to stop the intergenerational theft so they are willing to manufacture a crisis to get something done that otherwise rational people would not do....steal from their kids

[wgbgator]

Things would be better if you took away the loophole to mint the coin, and the loophole that allows us to spend but not borrow by raising the debt ceiling to cover spending that we alread owe. That should be the deal. Otherwise, its a perfectly valid option to #mintthecoin.

[Matthanuf06]

Originally Posted by wgbgator

Things would be better if you took away the loophole to mint the coin, and the loophole that allows us to spend but not borrow by raising the debt ceiling to cover spending that we alread owe. That should be the deal. Otherwise, its a perfectly valid option to #mintthecoin.

Minting the coin would end America as we know it.

[wgbgator]

Originally Posted by Matthanuf06

If that what it takes to get the left to realize we have a spending problem, then so be it

And that's why the coin should be minted. Because we don't have a spending problem, and the House GOP has turned what was once an opportunity to grandstand over debt (but otherwise predictable and routine vote) into a weapon to extract policy outcomes by threatening default. The coin would be a bad precedent, but the bad precedent was already set by these debt ceiling showdowns.

[wgbgator]

Originally Posted by Matthanuf06

Minting the coin would end America as we know it.

LOL. I think you'd be surprised when business continued as usual if that happened. Meanwhile, it's you who said we should shut down the gov't.

[orangeblueorangeblue]

It wouldn't end anything, but it might illuminate the way our monetary system works to people who otherwise never paid attention.

Now, for those who understand fiat and that fiat currency is nothing but a symbolic conduit for the trade of the value of work, this isn't a problem. The issue is most people don't see money that way. They think that money itself must tangibly represent that value.

This would be nothing more than an alternate qualitative easing, which we seem to do without much thought these days.

[Matthanuf06]

Originally Posted by wgbgator

LOL. I think you'd be surprised when business continued as usual if that happened.

Depends how you define usual. Sure we'd all wake up and go to work. I wasn't saying the gates of hell would open up and we'd have lava flowing all around us.

At that point it would be obvious to all that we'd be in a full blown dictatorship with no reason to have confidence in the US economy or the USD long term. The dollar is already losing its spot as be worlds currency, if Obama did that then kiss that goodbye.

[wgbgator]

Originally Posted by orangeblueorangeblue

It wouldn't end anything, but it might illuminate the way our monetary system works to people who otherwise never paid attention.

Now, for those who understand fiat and that fiat currency is nothing but a symbolic conduit for the trade of the value of work, this isn't a problem. The issue is most people don't see money that way. They think that money itself must tangibly represent that value.

This would be nothing more than an alternate qualitative easing, which we seem to do without much thought these days.

This.

[orangeblueorangeblue]

The truth is we print money out of nothing every day, we just get to shroud a lot of it in secrecy due to our public-private central bank.

I'd trade the Fed for a wholly public central bank any day. It would actually solve a lot of our problems with that move alone.

[Matthanuf06]

Originally Posted by wgbgator

And that's why the coin should be minted. Because we don't have a spending problem, and the House GOP has turned what was once an opportunity to grandstand over debt (but otherwise predictable and routine vote) into a weapon to extract policy outcomes by threatening default. The coin would be a bad precedent, but the bad precedent was already set by these debt ceiling showdowns.

How can you possibly conclude that we do not have a spending problem? That defies all semblance of logic.

[wgbgator]

Originally Posted by Matthanuf06

Depends how you define usual. Sure we'd all wake up and go to work. I wasn't saying the gates of hell would open up and we'd have lava flowing all around us.

At that point it would be obvious to all that we'd be in a full blown dictatorship with no reason to have confidence in the US economy or the USD long term. The dollar is already losing its spot as be worlds currency, if Obama did that then kiss that goodbye.

But shuting down or threatening to shutdown the government every 1-2 years to extract policy concessions (which have nothing to do with spending already owed), and possibly downgrading our credit rating doing so would increase confidence in the US economy? Ok.

[orangeblueorangeblue]

We have - without a doubt - a spending problem. A huge one.

[orangeblueorangeblue]

But I would agree that the debt ceiling stuff is nonsensical; a largely designed distraction, like the "fiscal cliff."