Debt Ceiling solution? Print the dang coin!

[MithrilKnight]

So, this platinum coin deal, is that the U.S. Treasury can, by law, print a platinum coin of any value. There's a possible solution to the debt ceiling of just printing a couple $1 Trillion coins, and then using that "money".

Of course one downside to that would be inflation.

However, given that we're in a recession, and possible depression even, having inflation is a good thing.


While I would prefer an overriding long-term plan, a policy of government, to enact certain goals of the USA and tax accordingly. However, there's no real reason not to do it.

The only reason Greece is defaulting is because it DOESN'T print its own money anymore.

Besides, the "debt ceiling" is the budget, which the House is responsible for creating every year. All they need do is set a budget next year that's smaller than last year and you got your budget cut.

If Republicans were serious about cutting the budget, it'd be done.

They control the purse strings, 100%.

[Mom49of4]

Do you have a link?

[flyboy56]

So, this platinum coin deal, is that the U.S. Treasury can, by law, print a platinum coin of any value. There's a possible solution to the debt ceiling of just printing a couple $1 Trillion coins, and then using that "money".

Of course one downside to that would be inflation.

However, given that we're in a recession, and possible depression even, having inflation is a good thing.


While I would prefer an overriding long-term plan, a policy of government, to enact certain goals of the USA and tax accordingly. However, there's no real reason not to do it.

The only reason Greece is defaulting is because it DOESN'T print its own money anymore.

Besides, the "debt ceiling" is the budget, which the House is responsible for creating every year. All they need do is set a budget next year that's smaller than last year and you got your budget cut.

If Republicans were serious about cutting the budget, it'd be done.

They control the purse strings, 100%.

A budget is rough drafted by the President which he has done every year. It then goes to the Senate where they refine it, and then to the House. The problem has been with the Senate who has not submitted a refined budget to the House since February of 2009.

[SemiAuto]

So, this platinum coin deal, is that the U.S. Treasury can, by law, print a platinum coin of any value. There's a possible solution to the debt ceiling of just printing a couple $1 Trillion coins, and then using that "money".

Of course one downside to that would be inflation.

However, given that we're in a recession, and possible depression even, having inflation is a good thing.


While I would prefer an overriding long-term plan, a policy of government, to enact certain goals of the USA and tax accordingly. However, there's no real reason not to do it.

The only reason Greece is defaulting is because it DOESN'T print its own money anymore.

Besides, the "debt ceiling" is the budget, which the House is responsible for creating every year. All they need do is set a budget next year that's smaller than last year and you got your budget cut.

If Republicans were serious about cutting the budget, it'd be done.

They control the purse strings, 100%.

I have $600 trillion.

I also have silver eagles which have a face value of $1 and an actual value of around $35 for a 2012. What does that tell you about the value of the paper dollar?

[SemiAuto]

Do you have a link?

Here is a story discussing it.

[RIKMAN]

You do understand what dropping a ton of coin of that size does economically...correct.
Supply and demand... The guy form the AEI writing concludes that he wouldn't want to find out what this does to the currency market.

Not sure such a loophole is an avenue we want to pursue.

[SemiAuto]

You do understand what dropping a ton of coin of that size does economically...correct.
Supply and demand... The guy form the AEI writing concludes that he wouldn't want to find out what this does to the currency market.

Not sure such a loophole is an avenue we want to pursue.

I've got bad news for you. With quantitative easing the Fed is essentially already doing this. They're just doing it with US treasuries and MBS instead of platinum.

[RIKMAN]

I've got bad news for you. With quantitative easing the Fed is essentially already doing this. They're just doing it with US treasuries and MBS instead of platinum.

Indeed, but throwing this coin of the realm on top of the other mischief at Treasury ...well, as the author concludes on the topic, it's not something we'd want to see.

BTW- I vote for Lenin as the face on the coin.

[SemiAuto]

About that coin. At today's prices the $1 trillion dollar platinum coin would have to weigh 18,000 tons.

So if the Treasury plans on literally coming up with ridiculous laws, what is there to prevent it from merely coining a one ounce, or half an ounce, or one gram Platinum coin and assigning it the value of $1 trillion.

Sure it can. There is a problem with that, however: it is called currency devaluation and is also what FDR did with executive order 6102 when he confiscated America's gold - he basically devalued the US Dollar by well over half overnight (which, for all those curious, is the endgame in the current depression also, but we'll cross that bridge when we get to it).

This would make buying toilet paper with the currency you have a losing proposition.

[Jeebus]

Coins are not printed.

They are minted.

[Jeebus]

I also have silver eagles which have a face value of $1 and an actual value of around $35 for a 2012.

And as a legal tender coin with a face value of $1 (or $50 for a gold eagle, and $100 for a platinum eagle), it has been used by unscrupulous people to avoid paying taxes.

Use real money, go to federal prison

Kahre offered to pay his workers in face value of federally issued gold and silver coins. These coins are legal tender at their face value. For instance, a one ounce gold American Eagle coin has a face value of $50. The actual value today of a one-ounce coin of fine gold is closer to $1,685 ±. If a person wished to pay for a tank of gas with an American Eagle at its $50 face value, they have a perfect legal right to do so. Of course, the wiser thing to do would be to sell the coin for its value in Federal Reserve notes and pocket the $1,635 in cash.

When Kahre offered to pay his workers in gold and silver, the legal tender laws should have considered those coins at face value. This means that an employee receiving 50 American Eagles annually would be making only $2,500 at face value. Therefore, the employee’s wages would fall below the threshold of reportable income.

Of course, the IRS takes umbrage at the thought of someone earning roughly $83,000 in Federal Reserve notes and not paying what the tax collectors consider their “fair share.” But there remains the issue of legal tender laws that clearly state that those Eagles are worth $50 face value.