Article

2013-01-09 Europe

Video: Can a trillion dollar coin solve America's fiscal crisis?

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Posted by tipper 2013-01-09 00:48|| || Front Page|| [3 views ] Top

#1 A denarius featuring Obamanerius? Oh why not.

Posted by Besoeker 2013-01-09 02:12|| 2013-01-09 02:12|| Front Page Top

#2 Put a picture of Keynes on it.

Posted by Bright Pebbles 2013-01-09 05:03|| 2013-01-09 05:03|| Front Page Top

#3 or perhaps Mugabe...

Posted by Bright Pebbles 2013-01-09 05:03|| 2013-01-09 05:03|| Front Page Top

#4 Bank Of America On The "Trillion Dollar Tooth Fairy" Straight "From The Land Of Fiscal Make Believe"

Posted by tipper 2013-01-09 08:27|| 2013-01-09 08:27|| Front Page Top

#5 A platinum mirror I can understand. But platinum smoke seems like a waste.

Besides, imagine the battles over whose portrait belongs on the face

That would be Obama in his ermine ruff, of course.

Posted by KBK 2013-01-09 09:08|| 2013-01-09 09:08|| Front Page Top

#6 Did it solve Zimbabwe or the Weimar republic's problems?

Posted by Bright Pebbles 2013-01-09 12:15|| 2013-01-09 12:15|| Front Page Top

#7 Government creates money all the time. We have a Treasury Department that has been doing this since 1787. We have a Federal Reserve that has been doing this since 1913.

Look at the money supply measures (M1, M3, etc) over the last two centuries. We create coinage, bills, bank reserves, etc all the time.

The question isn't whether government can create a $1T coin and call it legal tender. Of course it can, and can do so the same way it authorizes printing of $1 bills.

The question is what would happen if government did this. Okay, let's do that armchair experiment.

Let's coin 20 $1T coins (call them 'Krugmans'). Deposit the 20 Krugmans in the Treasury.

What happens next? Well, the Treasury either tries to 'spend' them -- proffer them in the markets to pay our bills -- or tries to borrow against them -- use them for collateral.

Either way the markets will likely say no, or say yes only under the most onerous terms.

And if either works, you are increasing the money supply by a substantial amount. I think there's a term for what happens when the money supply increases relative to the goods and services available. Hmmm, what's that word again?

Create a $1T Krugman if you want. Government can do it. It just isn't wise.

Posted by Steve White 2013-01-09 12:34|| 2013-01-09 12:34|| Front Page Top

#8 It would only work if the coin weighed 18,000 tons. I say make it and hand it directly to Obama.

Posted by airandee 2013-01-09 15:12|| 2013-01-09 15:12|| Front Page Top

#9 I have (Framed) A Ten Million Dollar Zimbabwe Note, totaly worthless, the Trillion Dollar Coin would also be worthless when minted.

Excepy as a curiosoty, not worth a damn.

Posted by Redneck Jim 2013-01-09 16:21|| 2013-01-09 16:21|| Front Page Top

#10 Make it out of plutonium and when you stack a couple or so on each other, you get critical mass. Top Secret

Posted by Alaska Paul 2013-01-09 16:49|| 2013-01-09 16:49|| Front Page Top

#11 The Ningi?

When will Krugman say we need a triganic Pu?

Posted by Bright Pebbles 2013-01-09 16:57|| 2013-01-09 16:57|| Front Page Top

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