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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: 61112
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 # 86.
#1. To: Badeye, A K A Stone, hondo68, Fred Mertz, Godwinson, go65, war, no gnu taxes, Skip Intro, ferret mike, jwpegler, brian s, mcgowanjm, Capitalist Eric, Mininggold (#0)
Sounds crazy, but...
Not only is this idea crazy, it's flat-out STUPID. Unless made of $1T of precious metals, it would simply be another form of fiat money. In REAL terms, a $1T gold coin would weigh 40453074.4 pounds. This, by the way, works out to the approximate weight of not one, but two Ticonderoga-class guided-missile cruisers, as shown here: Were it made out of platinum, it would weigh 36231884.0579 pounds- the same mass as the Spanish aircraft carrier Spanish aircraft carrier Principe de Asturias, below: Were you to have an inkling of economics, you'd already know that... On a more basic level, Geithner has been in the pocket of the big banks for years. The Federal Reserve is owned by those same big banks... You think Geithner- little pus-bag that he is- would ever do anything against the will of the banks?
What part of 1 OZ did you miss, CE? 8D
Yves is hot More Proof That Obama is Herbert Hoover Not only is Obama assuring that he will go down as one of the worst Presidents in history, but for those who have any doubts, he is also making it clear that his only allegiance is to the capitalist classes and their knowledge worker arms and legs. You don’t need to go further than the first page of today’s New York Times for proof. The Grey Lady has realized rather late in the game that automatic stabliizers and emergency programs have been propping up the economy, and the fact that they are soon to disappear will be more than a bit of a downer. Apparently it is now OK for Pravda to make that shocking revelation from Moody’s (the source of the key data in the article) because the budget debate is so far advanced that the executioner has already started the downward swing of his axe; the only question is whether he will get a clean kill of the average citizen’s economic wellbeing or whether it will be a protracted, messy death. From the New York Times:
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#67. To: lucysmomBadeye, A K A Stone, hondo68, Fred Mertz, Godwinson, go65, war, no gnu taxes, Skip Intro, ferret mike, jwpegler, brian s, mcgowanjm, Mininggold (#1)
Sounds crazy, but...
.
#84. To: Capitalist Eric (#67)
#86. To: Fred Mertz, mininggold, capitalist eric, lucy'smom, All (#84)
(Edited)
Replies to Comment # 86.
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