Trillion Dollar Platinum Coin

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Yeah, this idea gets play in the press every so often. It's never going to happen, but it makes for a "fun" story the media can play with. A year or so ago when this idea was being discussed in the media, I had read a pretty good analysis on it, but I didn't save the bookmark. Found this just now:

Jim Grant spends exactly the correct amount of time (zero) discussing the "urban myth' of the trillion dollar coin in this brief interview on CNBC; ...

Video: http://www.zerohedge.com/news/2013-...-money-materialization-and-submerging-america
 
Get your orders in early!

http://abcnews.go.com/blogs/politic...r-coins-the-ultimate-debt-ceiling-end-around/

:rotflmbo:

I have trouble believing that this is an actual solution. Either way, it's a funny(?) / interesting article.

ADK

well, this idea is the "solution" to exactly the same degree, as buying toxic MBSes by the Fed is a "solution" - i.e., it keeps the lights on, for a while, by monetizing the collateral, that is nowhere close to it's face-value. It doesn't really differ at all, if they mint it in platinum, or issue some more TBills, for the same face amount - they will most certainly do not use the amount of platinum, which market value would amount to US $1 trillion. Like, you know, in Zimbabwe, they did have these hundred trillion dollar bills - I say, save the platinum for better use.

This is just a legal gimmick,that would allow them to go around the congressional deadlock, because debt ceilings increases have to be approved by Congress, while minting the coin, apparently not.

Besides, why stop there? Let's just keep minting these, and send a million dollar check to every US citizen, for his troubles - wouldn't it be great?
 
* bump *

Debt ceiling back in the news = trillion dollar platinum coin back in the news

As the debt ceiling debate takes over the headlines in the U.S., so is the idea of minting a $1 trillion platinum coin, which is a surprising option available to the Treasury Department to raise the debt ceiling without bipartisan support.

The #MintTheCoin plan is gaining traction in some circles again as a deeply divided Congress makes the debt ceiling debate extra difficult, with fierce arguments on both sides of the aisle around debt, inflation, and the path forward.
...
On the $1 trillion platinum coin loophole, which potentially allows the Treasury Department to mint platinum coins of any denomination and deposit them at the Federal Reserve in exchange for the U.S. federal debt, Yellen was very skeptical.

In an interview with The Wall Street Journal, Yellen said that the Federal Reserve is unlikely to agree to such a plan, calling the scheme a "gimmick."

"It truly is not by any means to be taken as a given that the Fed would do it, and I think especially with something that's a gimmick," she said in an interview published Sunday. "The Fed is not required to accept it, there's no requirement on the part of the Fed. It's up to them what to do."
...
Several Biden administration officials and Democrats once again started to talk about this option. The issue was also raised in the fall of 2021, the last time the debt ceiling had to be raised.

At the time, Yellen also spoke out, stating that she was against the idea. "I'm opposed to it, and I don't believe that we should consider it seriously. It's really a gimmick," Yellen told CNBC in 2021.
...

 
I hope they do it. I have an old platinum ring I'd like to cash in.
 
I hope they do it. I have an old platinum ring I'd like to cash in.

If they mint a $1T platinum coin, it's not going to affect spot for platinum. The US Mint would make one coin and sell it to the Federal Reserve, the "profit" credits the US Treasury. It's just an accounting gimmick that let's the Fed give the Treasury cash for a coin where the nominal value way exceeds the market value - sort of an inverse to the US Mint's nominal values of gold coins (nominally $50 face value for 1 oz AGE coin has market value ~$2000).
 
That's Zimbabwe territory with the corruption.
 
Why waste the platinum? They could run the same scam by making a trillion $ coin out of tin.

Or even plastic.

However, if our esteemed leaders should actually follow through with this scam, it'll become glaringly visible to all the World that we are no better than a banana republic.
....and would cause a much more rapid de-dollarization around the World.
 
Why waste the platinum? They could run the same scam by making a trillion $ coin out of tin.

Or even plastic.

However, if our esteemed leaders should actually follow through with this scam, it'll become glaringly visible to all the World that we are no better than a banana republic.
....and would cause a much more rapid de-dollarization around the World.
It's gonna happen, anyway.

In fact it IS happening. The Petrodollar has just been stabbed in the back, and probably it's fatal

That will send all those Eurodollars floating "home" - where we get another round of inflation, due to the sudden circulation of the created-from-air inflated currency.

So, let the MMT (Magic Money Tree) proponents put their "theories" to the test. It's all the same to the rest of us; the conclusion of this farce is already written.
 
...
Dumb Idea Meets Economics

You do realize this is dumb, right?

This is a monetary disaster waiting to happen. It would put inflation on hyperdrive.

We just saw what happens when the Fed prints trillions of dollars out of thin air and injects it into the economy. The price of everything goes up. We’re paying for pandemic stimulus every time we go to the grocery store.

I mentioned earlier that this scheme would raise taxes. This is how. It would jack up the inflation tax even higher. Minting a coin and pretending it is worth $1 trillion doesn’t change the dynamics. When you boil it all down, it would do nothing but increase the money supply. That is, by definition, inflation.
...

 
Why just make one? They should strike 32 of them. Retire $31 Trillion in gov. debt and have a Trillion left over to spend on more insane useless shit.

These idiots are going to crash the entire thing. No doubt about it. United States of Zimbabwe.
 
who's gonna 'own' the 'credit' that ONE COIN holds?

that's a whole lot of value jammed up in one place...POWER



and who's gonna have to pay off that 'token'?

. . .PAUPER

it's a simple trick to get us to believe something tangible would occur, in fact, just the opposite


 
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