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Title: LET’S END THIS DEBT CEILING DEBATE WITH A $1 OZ. $1T COIN
Source:
Pragmatic Capitalism
URL Source: http://pragcap.com/lets-end-this-de ... ing-debate-with-a-1-oz-1t-coin
Published: Jul 7, 2011
Author: Cullen Roche
Post Date: 2011-07-09 00:54:08 by lucysmom
Keywords: Debt Ceiling, Treasury vs Congress
Views: 61108
Comments: 102
A reader points out a very interesting loophole in the debt ceiling debate that would give the US Treasury the ability to tell the US Congress to take their fearmongering and shove it you know where. Reader “Beowulf” notes: “No, Tsy isn’t authorized to just “print” money, the Federal Reserve Act gives that power to the Fed, However, the Coinage Act grants the Secretary of the Treasury rather broad coin seigniorage authority. Geithner could sidestep the debt ceiling this afternoon by ordering the West Point Mint to coin a 1 oz. $ 1 trillion coin. Tsy can then present the jumbo coins at the NY Fed to buy back $1 trillion in Fed-held debt (the Fed has to accept it, a creditor can’t refuse legal tender paid in to settle a debt): (h) The coins issued under this title shall be legal tender… (k) 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.” The simple threat of doing this would end this debate right here and right now. It’s time for Congress to stop playing Russian roulette with the US economy. If you want to take a stand on spending then do so before you pass legislation that causes us to run up into the debt ceiling. Don’t use some phony law to try to scare people into thinking that we are Greece (something that’s entirely impossible anyhow).
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Begin Trace Mode for Comment # 43.
#5. To: lucysmom (#0)
(Edited)
Like so many on the lunatic left, the author completely misunderstands the role that money plays in society, namely as A.) a medium of exchange and B.) store of value. Instead, the author believes that money is some kind of mysterious, magical thing that the government can simple conjure up to cure any and all ills. The sad fact is that most of our problems are directly related to the fact that the government has been able to create fiat money at will and force us all to accept it. The result? Booms, busts, inflation, debt. No thanks, been there, done that.
If booms, busts, inflation, and debt were a result of fiat money then how do you explain the booms, busts, inflation, and debt that happens with a precious metal backed currency?
I've explained this many times, but you are too stupid to understand. During the 19th century the U.S. Government enforced a bi-metals standards with fixed exchange rates between gold and silver. The bi- metals standard was created to favor silver interests. Of course, it created boom and bust cycles, just like the Federal Reserve's fiat money, and just like all political manipulation of the money supply does. Unfortunately, the lunatic left learned the wrong lesson, as they always do. The right lesson is that government manipulation of the money supply to favor political interests is a fundamental problem that has to be eradicated.
So both systems create booms and busts. That's the whole purpose of the shark's periodically thinning the herd and cashing out at the same time. Unless your magical thinking leads you to believe that money just goes up in smoke.
You are not understanding again, as usual. POLITICAL MANIPULATION of the money supply causes boom and bust cycle. As Nobel Laureate Fredrich Hayek pointed out several decades ago, the real answer is to get government out of the money business altogether. We have the technology to make competing currencies a reality today. That's what we need to do.
As a country, we've been there, done that. The system had problems, we don't do that anymore. That being said, there are local currencies.
no one admits the social contracts between government and local unions; yet, this is the entire heart of America's downfall for budgets, not just because of a pay grade and benefit package for each and every employee in government. Here is a plan that you don't here about ANYWHERE. Eliminate the current pay schedules of GS-1 to GS-18 federal employees. Downgrade the same package from 2% at the bottom of the tier group to 20% at the top of the tier group. It saves the federal budget; it saves America; these are federal employees, the largest organization of gangsters from around the world.
Do you really think they can compete with those located on Wall Street?
The Obama Federal Reserve runs Wall Street. When union BO speaks they jump. WS can't convince the rubes that hO's anything but bad economic news, so the markets jump DOWN.
The Corps will just jump to another fifth world country where they can practice their utopian form of capitalism until the natives again wise up. It's the pubs who are stalling on the debt ceiling causing the current problem. They need to proudly take responsibility.
"That is usually what happens when a bus full of gasoline is rolling down a road and about to go off a cliff. What else can you call it? THERE ARE NO JOBS. THERE WILL BE NO JOBS. Remember when Madoff was discovered to be a ponzi. On the message boards the first questions asked by many people were "Where is the money?" No one could comprehend that a 56 Billion dollar fund had NO MONEY. They thought he had hid most of it. They could not comprehend the simplicity of the math of a ponzi and how it WORKS. You see.....things that appear very complex to the outside world of a ponzi are usually relatively elemental. Its just simple math..... There was ZERO money. NADA! NONE! Bernie simply maintained his vast yearly returns by paying out to the "lucky" ones that redeemed before the unlucky lower bigger part of his pyramid.....until he ran out of money."
No different than Social Security.
WHOAAA there pardner. SS is completely solvent and will be for at least 20 more years...
Wrong. Social Security started running an annual deficit this year and will continue to do so as the baby boomers flood into the system. It's broke.
No it's not broke, it has a $2.6 trillion dollar surplus. (wouldn't Wall Street high rollers love to get their hands on that! What percentage do you think they'd take in bonuses?)
You are a complete moron.
More of your Aspergers symptoms. Since there are drugs that will make you seem a bit more normal I suggest you see a doc, but in the meantime you really are getting to be booooorrrrring with your totally predictable routine.
#46. To: mininggold (#43)
Hey, whiningold/loonymom, what are your qualifications to diagnose Aspergers? Or is it just a reflexive device used to avoid debate? You and your 'shadow' are always posting in tandem.
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#7. To: jwpegler (#5)
The sad fact is that most of our problems are directly related to the fact that the government has been able to create fiat money at will and force us all to accept it. The result? Booms, busts, inflation, debt.
#16. To: lucysmom, capitalist eric (#7)
If booms, busts, inflation, and debt were a result of fiat money then how do you explain the booms, busts, inflation, and debt that happens with a precious metal backed currency?
#17. To: jwpegler (#16)
During the 19th century the U.S. Government enforced a bi-metals standards with fixed exchange rates between gold and silver. The bi- metals standard was created to favor silver interests. Of course, it created boom and bust cycles, just like the Federal Reserve's fiat money, and just like all political manipulation of the money supply does.
#18. To: mininggold (#17)
So both systems create booms and busts.
#20. To: jwpegler (#18)
We have the technology to make competing currencies a reality today. That's what we need to do.
#21. To: lucysmom (#20)
As a country, we've been there, done that.
#22. To: buckeroo (#21)
It saves the federal budget; it saves America; these are federal employees, the largest organization of gangsters from around the world.
#23. To: mininggold (#22)
think they can compete with those located on Wall Street
#24. To: hondo68 (#23)
The Obama Federal Reserve runs Wall Street. When union BO speaks they jump. WS can't convince the rubes that hO's anything but bad economic news, so the markets jump DOWN.
#25. To: mininggold (#24)
#28. To: mcgowanjm (#25)
Remember when Madoff was discovered to be a ponzi. On the message boards the first questions asked by many people were "Where is the money?" No one could comprehend that a 56 Billion dollar fund had NO MONEY.
#30. To: jwpegler, mininggold, All (#28)
No different than Social Security
#34. To: mcgowanjm (#30)
(Edited)
SS is completely solvent and will be for at least 20 more years...
#35. To: jwpegler (#34)
Social Security started running an annual deficit this year and will continue to do so as the baby boomers flood into the system. It's broke.
#42. To: lucysmom (#35)
[Social Security] has a $2.6 trillion dollar surplus. (wouldn't Wall Street high rollers love to get their hands on that! What percentage do you think they'd take in bonuses?)
#43. To: Capitalist Eric (#42)
You are a complete moron.
Replies to Comment # 43.
End Trace Mode for Comment # 43.
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