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You'll probably facepalm at this logic by the GOP ($1 trillion coin-related)

#31JIC XPosted 1/9/2013 1:08:33 PM(edited)
TaiIs82 posted...
Printing money is what they do in Zimbabwe. It's the classic sign of a failed state.


This isn't "printing money", though, not in the usual sense of the term.
It's nothing but a legal trick designed to allow the United States to go on meeting the obligations it has incurred according to law while Congress bickers over another (possibly unconstitutional) legal trick designed to stop it from doing so.

The government'd just cut checks like it normally does, and then, when it regains its borrowing authority, it would buy the coin back. The money supply wouldn't be affected.
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#32JIC XPosted 1/9/2013 1:07:20 PM(edited)
Basically, instead of selling treasury securities to the Federal Reserve (which is how the Federal government normally borrows money), the government would sell a platinum coin to the Federal Reserve.

It's a difference of form, not of substance.
The coin wouldn't expose the country to a risk of inflation not posed by the treasury securities.
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#33Sir WillPosted 1/9/2013 1:23:26 PM
Though it's also not a trick they can use regularly or faith in the US currency would drop and that would lead to problems.
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#34chareyPosted 1/9/2013 1:27:22 PM
OrtegaTron posted...
Did anyone else think of the Simpsons episode where Burns steals the trillion dollar bill when this story first came out? Or does that show my age?


I did.
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#35JIC XPosted 1/9/2013 1:32:39 PM
Though it's also not a trick they can use regularly or faith in the US currency would drop and that would lead to problems.

So long as the government pledges to repurchase the coin when Congress restores its borrowing authority, selling a coin to the Fed is substantially no different from the way the government normally "borrows" money (i.e. by selling things [securities] to the Federal Reserve and other investors).

Actually, there's sort of an upside fiscally, in that the government wouldn't have to pay interest on the coin (as it would on treasury securities).
It'd buy the coin back at face value.
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And that is why the age of magic is at an end. {WoT}, Emeritus
#36SCAMaz0nPosted 1/9/2013 1:35:31 PM
Anarchy_Juiblex posted...
Holy s*** they are stupid.
I guess I'm glad that it always amazes me.

What is the deal on this coin anyway? I heard a passing blurb on the news about it, but I haven't had a chance to look into it yet.

There's laws on how much paper money the feds can print, how much gold and silver coins the fed can mint, but none on platinum so the idea is they can create a $1t coin to pay our debt instead of raising the debt ceiling.
No f***ing clue what this would do to inflation though.

Honestly it sounds like a dumb scheme that will somehow screw us. If our economy can be affected so greatly from lawyering the language and minting a single coin, it's time to f***ing start over.

Creating any type of gold, silver, metals currency has an effect on the market of that currency. Or any products made out of that metal.

btw, anyone find it odd that we aren't talking about making a gold coin? After all, platinum right now is $1,595/ounce but gold is $1,657.62/ounce.
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#37JIC XPosted 1/9/2013 1:43:50 PM
Creating any type of gold, silver, metals currency has an effect on the market of that currency. Or any products made out of that metal.

This isn't free coinage, nor is the intent here to create a circulating currency. This'd be a one-time minting of a single coin, which is not even legally required to be composed of pure platinum (electroplating is good enough, says the statute), declared by the Treasury to be worth a trillion dollars. If it's only a platinum plated coin, the actual platinum metal in it probably wouldn't be worth more than fifty dollars.

btw, anyone find it odd that we aren't talking about making a gold coin? After all, platinum right now is $1,595/ounce but gold is $1,657.62/ounce.


The Treasury can't mint gold coins in any denomination it pleases; that loophole in the legislation only applies to platinum.
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And that is why the age of magic is at an end. {WoT}, Emeritus
#38Von23Posted 1/9/2013 1:48:38 PM(edited)
"http://maddowblog.msnbc.com/_news"


Didn't bother to go further than that.

I'lm surprised that Maddow is even taken seriously on this board. She often spins things to make points that sound moronic in the end anyway.
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