Getting ready for a coin trick…

Some are taking the trillion dollar coin trick as policy very seriously. Here is Bloomberg.

[W]e need to compare the platinum coin option against others on the table. For example, we could hit the debt ceiling and the government could start leaving about 40 percent of its bills unpaid.

The president could accede to Republican demands for near-term spending cuts (of an as-yet-unspecified nature) in addition to the amounts from the Budget Control Act sequesters, which would cause another recession.

Or he could assert authority under the 14th Amendment to continue issuing debt, notwithstanding the debt ceiling, which would lead to court battles and probably impeachment. (The 14th Amendment play sounds less “silly” than the platinum coin, but it’s actually on much shakier legal ground.)

Minting the platinum coin would be less economically damaging than any of the above options, which is why Obama should announce he will pursue it if the debt ceiling is not raised. Hopefully, inflation hawks will be so alarmed by the president’s intention to use his direct monetary authority that they will choose to cut a deal and we’ll never actually get to the minting stage.

But if Republicans call Obama’s bluff, he should be ready to mint that coin – – and to save the economy by doing so.

That this creates money out of thin air isn’t really the problem in and of itself. As is seen in the post below this one, all American money is created out of thin air. This method of conjuring dollars is just more obvious than the others. It isn’t really any different, however.

The problem is that juvenile delinquents think they have found a way to transfer all budget making from the legislative to decrees from the executive branch. They seem to like the idea of all power vested in a king. They should recall that Obama is a mortal god/king and will someday be gone but the power they put in the hands of the executive will remain.

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21 Responses to Getting ready for a coin trick…

  1. PatrioticCitizen says:

    When you posted your views on torture being used to gain information in the military ,you said it was the same taught to you at SERE training …I only have one question for you …Did anyone sodomize you as they did that poor German man that just happened to have a Arab name and was later released and apologized to ? DId they teach you that one ?

    • RJ says:

      WTF did you read the article?

      • PatrioticCitizen says:

        Yes I did read it and my question still has not been answered on the article you wrote on torture practices and your defense of them, Even though high level intelligence services here and the rest of the world have advocates that say information gained through it’s means are usually false and useless.

  2. PatrioticCitizen says:

    From the story they used a instrument to do this to the poor man , but was just curious if they taught that to you as well ? Sorry this wasn’t in your original post just came across this today and read about you considered torture not a big deal.

    • Ray Davies says:

      Sir, I don’t think this is the blog for you. You may be patriotic,and you may have your opinions on torture, but that is not what was being talked about. I’m sure you will be welcomed if you stay on topic, but not if you act like this.

  3. Rockheim says:

    So by minting a Trillion dollar coin you will have effectively DOUBLED the amount of cash money in circulation.. Just out of curiosity.. Exactly how will that NOT simply halve the worth of every dollar we have and spend?

    Because it’s no longer debt at that point.. It’s money.

    • Ray Davies says:

      I tried to explain this to my wife today by going back to the gold standard,then the silver standard,then the federal reserve note. The gold has value,the silver has value,the paper is worth the paper. The government says it is worth a dollar, go elsewhere and they say it’s not worth near that much. A platnium coin is what the government says it is. She was shocked at the explanation, “People need to be told about this,”she said. I told her that people know,they just don’t want to know.

  4. RJ says:

    obumma has already stated he wanted authority to ignore the ceiling raise it at his leisure, he will try it if any representative has the cajones to stand up to the “king in his own mind” prezzy and refuse to raise the ceiling.

  5. DarthJay says:

    I’ve got to admit, the logic of this baffles my mind. I’m not a genius when it comes to economics, but to me it’s like you’re playing monopoly – you run out of money so you go and grab a tub of Play-Dough and your round cutout and make your own Monopoly money. Then you get pissed when the other player throw a fit about what you did…

    • notamobster says:

      Then you take all the money from every player who argued,and give it those you like, throw the game in the trash and offer everyone a free colonoscopy.

  6. PatrioticCitizen says:

    Mr. R. D Walker you apparently from your views on torture have no desire to abide by the Geneva Convention we signed …nor wish to follow the Constitution. This is a sad day when a military man as yourself will no longer uphold our laws our forefathers intended to remain intact.

    • Ray Davies says:

      Patrioticcitizaen…Please leave.Thank you

    • Uke says:

      Comment in the thread you’re meaning to refer to, otherwise, begone. You are very, very far off topic for this thread.

      P.S. Bring bigger guns (i.e. better arguments) if you ever come to the thread I think you’re referring to. Otherwise, you won’t last a New York minute.

  7. notamobster says:

    Patriotic Citizen – You are more than welcome to visit us any time and discuss any topic you like, so long as kinda try to a) have a point, b) comment on the right article c) address any questions or comments as opposed to just repeating the same thing ad nauseum.

    Try commenting here:

    These guys are a bunch of savages. See how helpful I am? πŸ™‚ Please, write any questions or comments at the post above and I promise you, with everything in me that they will be addressed.

    As for you bullies, quick picking on the slow kid. πŸ˜‰

  8. PatrioticCitizen says:

    I really just wanted the author of the article I read on his torture statements to respond , the same one who wrote this one but I see he does not have the fortitude of character to do so. I too served ,USMC 1968 to 1972 but that does not really matter. I see the world in terms of what is right or wrong , not what is most effective. Hell most of you probably voted for George W

    • locke n load says:

      Dude, really. If you look on the side of the page you’ll see, as we all do, comments and the threads to which they are posted. Trust me, if you go post up a comment on the SERE training thread you WILL get more of a welcome (as it were).
      Having said that, if you continue to try and pick fights in the wrong threads THIS particular savage will toss every last one of your comments in the heap and be done with you.
      We love debate but we demand order, logic, and coherence. Please abide

    • notamobster says:

      Really? You’re already going for character assassination? After I was just sorta nice to you…

      Listen man, I very politely showed you how to get a proper response out of the (very busy) owner of this site, who wrote the piece you are referring to. I even gave you a link for frick’s sake.

      Put your comments/questions on that link, which is the article in question. I’m sure RD Walker will respond to your inquiry.

      Is there some moral superiority in blowing people up with drone missile strikes as opposed to pouring water on their face? If there is, I’m seriously missing the point.

      Anyway, go comment on the correct link. Try to be civilized and see what happens.