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Sat Jan 12, 2013, 03:59 PM

Treasury: We won’t mint a platinum coin to sidestep the debt ceiling

Source: The Washington Post

The Treasury Department will not mint a trillion-dollar platinum coin to get around the debt ceiling. If they did, the Federal Reserve would not accept it.

That’s the bottom line of the statement that Anthony Coley, a spokesman for the Treasury Department, gave me today. ”Neither the Treasury Department nor the Federal Reserve believes that the law can or should be used to facilitate the production of platinum coins for the purpose of avoiding an increase in the debt limit,” he said.

The inclusion of the Federal Reserve is significant. For the platinum coin idea to work, the Federal Reserve would have to treat it as a legal way for the Treasury Department to create currency. If they don’t believe it’s legal and would not credit the Treasury Department’s deposit, the platinum coin would be worthless.

The idea of minting a platinum coin to invalidate the debt ceiling comes from a few key sentences tacked onto the 1997 Omnibus Consolidated Appropriations Act. “Notwithstanding any other provision of law,” it reads, “the Secretary of the Treasury may mint and issue platinum coins in such quantity and of such variety as the Secretary determines to be appropriate.”

Read more: http://www.washingtonpost.com/blogs/wonkblog/wp/2013/01/12/treasury-we-wont-mint-a-platinum-coin-to-sidestep-the-debt-ceiling/

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Reply Treasury: We won’t mint a platinum coin to sidestep the debt ceiling (Original post)
Freddie Stubbs Jan 2013 OP
mbperrin Jan 2013 #1
Gore1FL Jan 2013 #4
sulphurdunn Jan 2013 #2
banned from Kos Jan 2013 #7
sulphurdunn Jan 2013 #20
struggle4progress Jan 2013 #3
Jakes Progress Jan 2013 #5
valerief Jan 2013 #6
defacto7 Jan 2013 #8
valerief Jan 2013 #9
eggplant Jan 2013 #10
defacto7 Jan 2013 #12
Fearless Jan 2013 #13
former9thward Jan 2013 #16
Rincewind Jan 2013 #19
TeamPooka Jan 2013 #11
randome Jan 2013 #14
limpyhobbler Jan 2013 #15
NorthCarolina Jan 2013 #17
forestpath Jan 2013 #18
Mojorabbit Jan 2013 #28
blkmusclmachine Jan 2013 #21
blkmusclmachine Jan 2013 #22
On the Road Jan 2013 #23
Ken Burch Jan 2013 #24
24601 Jan 2013 #25
FrodosPet Jan 2013 #26
Llewlladdwr Jan 2013 #27
FrodosPet Jan 2013 #29

Response to Freddie Stubbs (Original post)

Sat Jan 12, 2013, 04:12 PM

1. Shucks. I wanted to see all those right wing heads absolutely

explode.

Well, we'll get 'em next time!

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Response to mbperrin (Reply #1)

Sat Jan 12, 2013, 04:26 PM

4. They'll explode anyway if the debt ceiling actually gets pushed as a bargaining chip by the GOP.

They'll lose the fight legally and politically.

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Response to Freddie Stubbs (Original post)

Sat Jan 12, 2013, 04:12 PM

2. The Fed needs the Treasury.

I'm not sure the Treasury needs the Fed.

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Response to sulphurdunn (Reply #2)

Sat Jan 12, 2013, 04:46 PM

7. They each have a distinct role although

 

the Fed has far more power.

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Response to banned from Kos (Reply #7)

Sat Jan 12, 2013, 11:05 PM

20. Certainly,

but the Fed doesn't have the printing press.

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Response to Freddie Stubbs (Original post)

Sat Jan 12, 2013, 04:21 PM

3. I hope that finally squashes this ridiculous idea

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Response to Freddie Stubbs (Original post)

Sat Jan 12, 2013, 04:26 PM

5. O Goody. More drama.

Rich people and their hired help playing games with our lives. Democracy in action.

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Response to Freddie Stubbs (Original post)

Sat Jan 12, 2013, 04:39 PM

6. Who owns all the platinum? nt

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Response to valerief (Reply #6)

Sat Jan 12, 2013, 04:55 PM

8. It doesn't exist.

There is not enough platinum in the world to make a trillion dollar coin. As a matter of fact, all the platinum ever mined in history would have to be multiplied many, many times.

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Response to defacto7 (Reply #8)

Sat Jan 12, 2013, 04:57 PM

9. My, my, money and debt are such silly things, aren't they? Yet they drive everything

in the world.

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Response to defacto7 (Reply #8)

Sat Jan 12, 2013, 05:12 PM

10. Commemorative coins don't have to equal the value of their raw material.

It is a trillion dollar coin because that's what's written on it. It's been this way ever since we stopped using the gold and silver standards. Money is worth what it says it's worth.

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Response to eggplant (Reply #10)

Sat Jan 12, 2013, 05:35 PM

12. Yes, most of us know that...

The question was, "Who owns the platinum?". Grind much?

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Response to defacto7 (Reply #12)

Sat Jan 12, 2013, 05:43 PM

13. Al Gore must be sitting on most of it

For the fundies not to like the idea (ie. the easy way out).

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Response to eggplant (Reply #10)

Sat Jan 12, 2013, 06:18 PM

16. Money is worth what it says it's worth?

Tell that to the government of Zimbabwe. They minted a 100 trillion bill. You can find them on EBay.

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Response to defacto7 (Reply #8)

Sat Jan 12, 2013, 10:33 PM

19. There is more than enough.

It just needs to be big enough to say " One Trillion Dollars". There isn't a dollar's worth of metal in a $1 coin.

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Response to Freddie Stubbs (Original post)

Sat Jan 12, 2013, 05:24 PM

11. Why should the President put a coin in the meter to buy House Republicans more time? nt

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Response to TeamPooka (Reply #11)

Sat Jan 12, 2013, 05:52 PM

14. Like we need another reason for international markets to say...

..."Okay, now you're just making shit up."

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Response to Freddie Stubbs (Original post)

Sat Jan 12, 2013, 06:15 PM

15. preemptive surrender?

This could have been a way around the debt ceiling.

Notice in the article the President has also taken the 14th amendment option of the table. He could have used it to call the debt ceiling unconstitutional.

Seems like he's pretty eager to give the Republicans more leverage over the debt ceiling so he can pretend he has no choice but to make budget "concessions" to the gop.


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Response to limpyhobbler (Reply #15)

Sat Jan 12, 2013, 06:42 PM

17. Probably because the 3rd way crew need the Republicans to "force" them

to "fix" entitlements, and a debt ceiling fight facilitates that end. Minting a platinum coin to make such a "fight" moot.

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Response to NorthCarolina (Reply #17)

Sat Jan 12, 2013, 08:46 PM

18. Bingo.

 

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Response to NorthCarolina (Reply #17)

Mon Jan 14, 2013, 12:11 AM

28. That would be it right there I think.

I have become extremely cynical.

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Response to limpyhobbler (Reply #15)

Sat Jan 12, 2013, 11:52 PM

21. The WH uses GOP intransigence to push its rightist agenda.

Pretty f/cking obvious.

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Response to blkmusclmachine (Reply #21)

Sat Jan 12, 2013, 11:54 PM

22. Austerity Now! Austerity Forever!



.
Operation Northwoods: The 9/11 You Never Knew

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Response to Freddie Stubbs (Original post)

Sun Jan 13, 2013, 12:39 AM

23. No Reason for Them to Use This Particular Loophole

The situation calling for the platinum coin will only happen if the debt exceeds the current limit. If the debt limit is never reached, there is no issue.

The Fed has already been implementing another method of making debt disappear. All the Fed needs to do is implement another round of 'quantitative easing'.

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Response to Freddie Stubbs (Original post)

Sun Jan 13, 2013, 12:41 AM

24. Just as well...somebody would probably put it through one of those machines

that turn coins into tokens displaying the Space Needle or the Statue of Liberty.

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Response to Freddie Stubbs (Original post)

Sun Jan 13, 2013, 01:09 PM

25. So much for giving a half-dozen to the Chinese and telling them that they were paid-off in full.

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Response to 24601 (Reply #25)

Sun Jan 13, 2013, 10:04 PM

26. Or mint 300 of them

And send everyone a check for $1 Million.

No one would ever again have to be a wage slave. No one would ever have to work a nasty dirty underpaid job, cleaning sewers, dumping trash, or slaving away in a hot orchard picking fruit.

Want a house, a car, or an L.B. of sticky icky O.G. Kush? Buy it cash money - NO ONE would be in debt.

It just seems so easy - am I the only out-of-the-box thinker here?

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Response to FrodosPet (Reply #26)

Sun Jan 13, 2013, 10:15 PM

27. There's this thing, called inflation.

If everyone received a million dollars today then tomorrow a loaf of bread would cost...a million dollars.

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Response to Llewlladdwr (Reply #27)

Mon Jan 14, 2013, 12:39 AM

29. Actually I know. I have been fascinated by hyperinflation since Jr High School

I watched a film about the Weimer Republic, and how stores were raising prices between each customer. Scary stuff.

As for my post, I am suffering from a bad case of "Smartassitis" tonight.


http://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic

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