Poll_Blind (1000+ posts)
Fri Jul-29-11 07:10 PM
Original message
Some more information about the $1T coin, the law, and why it can only be made from platinum:
Edited on Fri Jul-29-11 07:15 PM by Poll_Blind
I think a lot of people are getting hung up on the concept of the minting of one or more $1 Trillion dollar coins as means for the President to bypass Congress to keep our nation from defaulting. Probably 90% of you who are reading these posts about a "Trillion Dollar Coin" think is sounds absolutely absurd. Whether or not you agree with me that this is a more legally viable and defensible position than "invoking the 14th Amendment" is moot. You're going to hear a lot more about this option in the next few days and this describes the hows and whys such a thing is a considerable, defensible option. Certainly more defensible than "invoking the 14th Amendment" which would almost certainly yield lawsuits which would invariably wind their way to the Supreme Court.
That Supreme Court.
Excerpted from this CNN article.
Sovereign governments such as the United States can print new money. However, there's a statutory limit to the amount of paper currency that can be in circulation at any one time.
Ironically, there's no similar limit on the amount of coinage. A little-known statute gives the secretary of the Treasury the authority to issue platinum coins in any denomination. So some commentators have suggested that the Treasury create two $1 trillion coins, deposit them in its account in the Federal Reserve and write checks on the proceeds.
--snip--
The "jumbo coin" and "exploding option" strategies work because modern central banks don't have to print bills or float debt to create new money; they just add money to their customers' checking accounts.
Wouldn't this be one of those "loopholes" where Democrats blame everyone else for all the troubles in the nation?
Liberal economic policy: Cause and Effect
Is the answer to all our financial problems a few grams of platinum?
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x1608186
Abracadabra! 2 TRILLION new Dollars just by minting a couple coins. Nah...that wouldn't be inflationary!
Why not mint 300 of them. and we will ALL be millionaires!
Welcome to the Unites States of Zimbabwe. Would you like a double cheeseburger from the Hundred Thousand Dollar Menu?
Egalitariat (1000+ posts) Sat Jul-30-11 01:42 PMVoila
Response to Reply #24
28. Except the $1 Trillion Coin would only take about 5 grams of platinum
Stamp it at the US Mint with a $1 Trillion face value and there you have it. Mint two of them and deposit in the Federal Reserve and the problem is solved.
You should read more about the $1 Trillion Coin idea if you think it was going to take $1 Trillion worth of Platinum (at its commodity price) to make the one coin.
better not loose that in the sofa. American Economy ruined, 1 T coin lost in sofa.:rofl:
I have no problem with it...as long as they use a trillion dollars worth of platinum in each one.