America to Mint a Trillion Dollar Coin?

America to Mint a Trillion Dollar Coin?

Spade

Free Thinker

#1Jan 7th, 2013

The idea, backed by Nobel- Prize-winning economist Paul Krugman, is for Obama to order minted a trillion-dollar platinum coin to be deposited in the American Treasury. The Treasury would have cash to end run any Republican-Congressional attempt to block funds needed to run government programmes.
Seems logical.

#MintTheCoin NOBEL PRIZE WINNER PAUL KRUGMAN: Obama Must Get Ready To Mint The Trillion Dollar Coin - Business Insider

Reaction?

55Mercury

Re: America to Mint a Trillion Dollar Coin?

Jan 7th, 2013

well, uh... whose head will be on it?

ah, I see.

maybe they could just put a big boner on it instead.

or maybe that could be on the reverse?

maybe on the obverse they can put "for pronunciation see reverse" lol

Tonington

Re: America to Mint a Trillion Dollar Coin?

Jan 7th, 2013

Who gets paid first if the debt limit is reached? Lawyers.

Smarten up and pay your bills America.

Ron in Regina

Free Thinker

#4 Top Rated Post

Re: America to Mint a Trillion Dollar Coin?

Jan 7th, 2013

Quote: Originally Posted by Spade

The idea, backed by Nobel- Prize-winning economist Paul Krugman, is for Obama to order minted a trillion-dollar platinum coin to be deposited in the American Treasury. The Treasury would have cash to end run any Republican-Congressional attempt to block funds needed to run government programmes.
Seems logical.

#MintTheCoin NOBEL PRIZE WINNER PAUL KRUGMAN: Obama Must Get Ready To Mint The Trillion Dollar Coin - Business Insider

Reaction?

This is how it all starts...first one Trillion dollar coin....then another. Soon
7-11's with have signs stating, "Can NOT accept Trillion Dollar Coins
after 8pm.

Goober

Free Thinker

Re: America to Mint a Trillion Dollar Coin?

Jan 7th, 2013

Quote: Originally Posted by Spade

The idea, backed by Nobel- Prize-winning economist Paul Krugman, is for Obama to order minted a trillion-dollar platinum coin to be deposited in the American Treasury. The Treasury would have cash to end run any Republican-Congressional attempt to block funds needed to run government programmes.
Seems logical.

#MintTheCoin NOBEL PRIZE WINNER PAUL KRUGMAN: Obama Must Get Ready To Mint The Trillion Dollar Coin - Business Insider

Reaction?

Take the Senators the Congress and shoot the whole ffn bunch. New elections- Gives them motivation. Make a deal or the grim reaper is a coming along with new elections.

Tonington

Re: America to Mint a Trillion Dollar Coin?

Jan 7th, 2013

Quote: Originally Posted by Ron in Regina

This is how it all starts...first one Trillion dollar coin....then another. Soon
7-11's with have signs stating, "Can NOT accept Trillion Dollar Coins

The idea isn't to put them in circulation. Reminds me of George Costanza trying to break a $100 bill at a liquor store

It's ludicrous, but like Krugman said, the alternative is ludicrous. Congress passes spending bills and then refuses to pay for them? WTF

Seriously messed up down there.

Goober

Free Thinker

Re: America to Mint a Trillion Dollar Coin?

Jan 7th, 2013

Quote: Originally Posted by Tonington

Who gets paid first if the debt limit is reached? Lawyers.

Smarten up and pay your bills America.

Problem is they cannot pay the bills- It is not the National Debt that is the only problem- It is all the social programs- Social Security has an outlay in x years of 225 + Trillion- The nat debt is 16 Trillion-

Tonington

Re: America to Mint a Trillion Dollar Coin?

Jan 7th, 2013

Quote: Originally Posted by Goober

Problem is they cannot pay the bills-

Actually that wasn't a problem. If they did have problems paying their bills, the treasury notes would be paying a lot more than they are right now. Investors know America pays it's bills, but this debt ceiling fiasco hasn't seen the yields on bonds rise much even with all the stupid in Washington. You would want a lot more yield from your money if you were worried there was a risk that you wouldn't get your money back. The yields are still ridiculously low.

lone wolf

Free Thinker

Re: America to Mint a Trillion Dollar Coin?

Jan 7th, 2013

A Trillion-dollar coin? At least the Royal Canadian Mint broke it to us easily - by Loonie and Twonie - that our currency is only worth pocket change.

Goober

Free Thinker

#10

Re: America to Mint a Trillion Dollar Coin?

Jan 7th, 2013

Quote: Originally Posted by Tonington

Actually that wasn't a problem. If they did have problems paying their bills, the treasury notes would be paying a lot more than they are right now. Investors know America pays it's bills, but this debt ceiling fiasco hasn't seen the yields on bonds rise much even with all the stupid in Washington. You would want a lot more yield from your money if you were worried there was a risk that you wouldn't get your money back. The yields are still ridiculously low.

The US has no problem selling debt even at low interest rates due to the safety of the worlds strongest economy and a democracy. That is where big money goes- including China- their largest importer is the US.

Tax increases, social cost reductions and it will take a generation to recover. A lower standard of living is the only result. And the only remedy.

Tonington

#11

Re: America to Mint a Trillion Dollar Coin?

Jan 7th, 2013

Quote: Originally Posted by Goober

The US has no problem selling debt even at low interest rates due to the safety of the worlds strongest economy and a democracy.

That's part of why they don't have a problem paying bills.

Spade

Free Thinker

#12

Re: America to Mint a Trillion Dollar Coin?

Jan 8th, 2013

More
http://videodelivery.msnbc.msn.com/n...ns_130108.mp4/

Trillion-dollar coin could let President Obama bypass debt-ceiling impasse - NY Daily News

Follow the progress of the petition.
https://petitions.whitehouse.gov/pet...-coin/8hvJbLl6

Stretch

Free Thinker

#13

Re: America to Mint a Trillion Dollar Coin?

Jan 10th, 2013

Quote: Originally Posted by Spade

The idea, backed by Nobel- Prize-winning economist Paul Krugman, is for Obama to order minted a trillion-dollar platinum coin to be deposited in the American Treasury. The Treasury would have cash to end run any Republican-Congressional attempt to block funds needed to run government programmes.
Seems logical.

#MintTheCoin NOBEL PRIZE WINNER PAUL KRUGMAN: Obama Must Get Ready To Mint The Trillion Dollar Coin - Business Insider

Reaction?

so why the need for the peasants to pay taxes then, if they can do that?

Serryah

Free Thinker

#14

Re: America to Mint a Trillion Dollar Coin?

Jan 10th, 2013

IMO it's just a momentary fix and it doesn't fix the problem or the things that caused the problem to begin with. Only when that's dealt with should anyone touch this "coin" bit.

EagleSmack

#15

Re: America to Mint a Trillion Dollar Coin?

Jan 10th, 2013

Quote: Originally Posted by Tonington

Who gets paid first if the debt limit is reached? Lawyers.

Smarten up and pay your bills America.

I agree 100%! But if the government focuses on being responsible and lives within their means people will have to become less dependent on the government and less DEMOCRAT.

Spade

Free Thinker

#16

Re: America to Mint a Trillion Dollar Coin?

Jan 10th, 2013

The very notion that America would not pay for services rendered is absurd. Neither democratic nor first world.

PoliticalNick

Free Thinker

#17

Re: America to Mint a Trillion Dollar Coin?

Jan 10th, 2013

Quote: Originally Posted by Stretch

so why the need for the peasants to pay taxes then, if they can do that?

They can't! The way the US currency and monetary system is set up with the (not really federal) federal reserve the govt has to issue $1 trillion in bonds to mint the coin. The bonds bear interest to the holder therefore the coin wouldn't even pay off the bonds issued to mint it. It works the same with all US currency.

Are you starting to see the problem yet?

The Old Medic

Conservative

#18

Re: America to Mint a Trillion Dollar Coin?

Jan 10th, 2013

This just goes to show that even Nobel Prize winning folks can be utter idiots outside their own fields.

Congress would have to enact authority to mint such a coin (or bill).

Believe it or not, the President of the United States can NOT do anything he feels like doing.

Tonington

#19

Re: America to Mint a Trillion Dollar Coin?

Jan 10th, 2013

Quote: Originally Posted by The Old Medic

This just goes to show that even Nobel Prize winning folks can be utter idiots outside their own fields.

Congress would have to enact authority to mint such a coin (or bill).

The Nobel Prize winning economist is correct. Congress already has enacted the authority and it appears in the United States Code:
Title 31 USC § 5112(k)

Quote:

The Secretary may mint and issue platinum bullion coins and proof platinum coins in accordance with such specifications, designs, varieties, quantities, denominations, and inscriptions as the Secretary, in the Secretary’s discretion, may prescribe from time to time.

PoliticalNick

Free Thinker

#20

Re: America to Mint a Trillion Dollar Coin?

Jan 10th, 2013

Quote: Originally Posted by Tonington

The Nobel Prize winning economist is correct. Congress already has enacted the authority and it appears in the United States Code:
Title 31 USC § 5112(k)

Sure, but they still have to issue $1 trillion in interest bearing bonds to mint it. Meaning it costs them $1 trillion PLUS INTEREST to mint a trillion dollar coin. No wonder we can't get out of debt.

Tonington

#21

Re: America to Mint a Trillion Dollar Coin?

Jan 11th, 2013

No they don't. They don't have to. They do so in practice to manage inflation, but as they're pretty mcuh at the zero bound, the risk of default is greater than the risk of some inflation.

If the US wants to get out of debt, then Congress shouldn't pass a budget that they can't afford to pay. If the US defaults, the consequences are far worse than some more debt which the US has up until now always been able to pay for.

JLM

No Party Affiliation

#22

Re: America to Mint a Trillion Dollar Coin?

Jan 11th, 2013

Quote: Originally Posted by Spade

The idea, backed by Nobel- Prize-winning economist Paul Krugman, is for Obama to order minted a trillion-dollar platinum coin to be deposited in the American Treasury. The Treasury would have cash to end run any Republican-Congressional attempt to block funds needed to run government programmes.
Seems logical.

#MintTheCoin NOBEL PRIZE WINNER PAUL KRUGMAN: Obama Must Get Ready To Mint The Trillion Dollar Coin - Business Insider

Reaction?

Who is going to pay for it?

PoliticalNick

Free Thinker

#23

Re: America to Mint a Trillion Dollar Coin?

Jan 11th, 2013

Quote: Originally Posted by Tonington

No they don't. They don't have to. They do so in practice to manage inflation, but as they're pretty mcuh at the zero bound, the risk of default is greater than the risk of some inflation.

If the US wants to get out of debt, then Congress shouldn't pass a budget that they can't afford to pay. If the US defaults, the consequences are far worse than some more debt which the US has up until now always been able to pay for.

They don't have to according to the constitution but they do have to according to the federal reserve act. Bit of a catch 22. Until they abolish the (not really federal) federal reserve they have to issue the bonds to the fed to produce any new money.

Spade

Free Thinker

#24

Re: America to Mint a Trillion Dollar Coin?

Jan 11th, 2013

Coins Against Crazies

Tonington

#25

Re: America to Mint a Trillion Dollar Coin?

Jan 11th, 2013

Quote: Originally Posted by PoliticalNick

They don't have to according to the constitution but they do have to according to the federal reserve act.

Care to quote the clause?

PoliticalNick

Free Thinker

#26

Re: America to Mint a Trillion Dollar Coin?

Jan 11th, 2013

Quote: Originally Posted by Tonington

Care to quote the clause?

Feel free to read the Federal Reserve Act at your leisure. I'm a little busy at work right now.

Angstrom

Liberal

#27

Re: America to Mint a Trillion Dollar Coin?

Jan 11th, 2013

Lol What's the next big number after a trillion? Might as well get started on the design for that coin too.

Tonington

#28

Re: America to Mint a Trillion Dollar Coin?

Jan 11th, 2013

Quote: Originally Posted by PoliticalNick

Feel free to read the Federal Reserve Act at your leisure. I'm a little busy at work right now.

I searched it. It doesn't say anything about the activity described in US Code which allows the Treasury Secretary to authorize the minting of platinum coins. I'm not prepared to take you at your word that it does, so I was hoping you would provide some evidence for your assertion of what the Federal Reserve Act says on this matter. The issuing of comemorative coins is not backed by bonds. That's the law we're talking about.

Spade

Free Thinker

#29