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Fri Jan 11, 2013, 05:51 AM

 

Krugman: Mint that Coin!

Here’s how it would work: The Treasury would mint a platinum coin with a face value of $1 trillion (or many coins with smaller values; it doesn’t really matter). This coin would immediately be deposited at the Federal Reserve, which would credit the sum to the government’s account. And the government could then write checks against that account, continuing normal operations without issuing new debt.

In case you’re wondering, no, this wouldn’t be an inflationary exercise in printing money. Aside from the fact that printing money isn’t inflationary under current conditions, the Fed could and would offset the Treasury’s cash withdrawals by selling other assets or borrowing more from banks, so that in reality the U.S. government as a whole (which includes the Fed) would continue to engage in normal borrowing. Basically, this would just be an accounting trick, but that’s a good thing. The debt ceiling is a case of accounting nonsense gone malignant; using an accounting trick to negate it is entirely appropriate.

http://www.nytimes.com/2013/01/11/opinion/krugman-coins-against-crazies.html?smid=tw-NytimesKrugman&seid=auto&_r=0

21 replies, 2141 views

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Always highlight: 10 newest replies | Replies posted after I mark a forum
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Arrow 21 replies Author Time Post
Reply Krugman: Mint that Coin! (Original post)
Larrymoe Curlyshemp Jan 2013 OP
napoleon_in_rags Jan 2013 #1
Scootaloo Jan 2013 #2
Larrymoe Curlyshemp Jan 2013 #16
napoleon_in_rags Jan 2013 #17
davidpdx Jan 2013 #4
tclambert Jan 2013 #3
Zoonart Jan 2013 #7
davidpdx Jan 2013 #5
freedom fighter jh Jan 2013 #6
davidpdx Jan 2013 #18
freedom fighter jh Jan 2013 #20
yurbud Jan 2013 #21
groundloop Jan 2013 #8
Javaman Jan 2013 #9
rhett o rick Jan 2013 #11
Javaman Jan 2013 #12
rhett o rick Jan 2013 #10
Javaman Jan 2013 #13
rhett o rick Jan 2013 #14
NorthCarolina Jan 2013 #15
Amonester Jan 2013 #19

Response to Larrymoe Curlyshemp (Original post)

Fri Jan 11, 2013, 06:12 AM

1. I saw this on Huffpo. But who's face would be on there?

A trillion dollar coin. Got to be something completely different. Ideas?

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Response to napoleon_in_rags (Reply #1)

Fri Jan 11, 2013, 06:47 AM

2. I say we put Dubya's head on it.

Full-frontal Alfred E. Newman expression and everything.

Surrounded by the zeroes of the coin's denomination.

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Response to Scootaloo (Reply #2)

Fri Jan 11, 2013, 04:48 PM

16. Absolutely!

 

I mean, who fucked us up more?

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Response to Scootaloo (Reply #2)

Fri Jan 11, 2013, 05:38 PM

17. lol! nt

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Response to napoleon_in_rags (Reply #1)

Fri Jan 11, 2013, 07:02 AM

4. Bill Clinton

Why? Because he actually had us going toward surpluses before G.W. screwed things up. I see it more as a reward for his service.

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Response to Larrymoe Curlyshemp (Original post)

Fri Jan 11, 2013, 06:52 AM

3. The motto on it should read: "Republicans are so stupid (see other side)"

printed on both sides.

I love this idea precisely BECAUSE it is ridiculous.

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Response to tclambert (Reply #3)

Fri Jan 11, 2013, 08:18 AM

7. Impeachment Trap

O has to be careful. The minting of this coin could be used as an impeachment trap by the Rethugs.

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Response to Larrymoe Curlyshemp (Original post)

Fri Jan 11, 2013, 07:04 AM

5. I think this should be used as a last resort and something to hang over the Republicans heads

The other problem is doing so would set a precedent for the future where doing so would be acceptable, maybe under less dire circumstances.

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Response to davidpdx (Reply #5)

Fri Jan 11, 2013, 07:44 AM

6. Maybe it should be acceptable for the government to create money.

I'd love to see government doing it instead of the banks.

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Response to freedom fighter jh (Reply #6)

Fri Jan 11, 2013, 10:32 PM

18. I don't think the idea of printing more money is a good one

This is one of the rare exceptions.

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Response to davidpdx (Reply #18)

Sat Jan 12, 2013, 07:46 AM

20. I'm talking not about how much money is created, but about

who creates it. Right now banks create most of it. See http://www.straightdope.com/columns/read/719/how-much-money-is-there

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Response to freedom fighter jh (Reply #6)

Sat Jan 12, 2013, 04:10 PM

21. I'm with you. There is something obscene about letting private banks make money out of thin air

and then we owe them interest on that money made from nothing.

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Response to Larrymoe Curlyshemp (Original post)

Fri Jan 11, 2013, 08:32 AM

8. I wonder......

If maybe after hearing discussions of minting this coin the tea-baggers in congress might just get the message that they're not going to hold the debt-ceiling hostage in order to cut social programs again. After all, as more people should be made aware, they're threatening to quit paying debt that they themselves are responsible for. They've passed bills for every bit of debt that we have to pay, we can't walk away from our responsibility. It's the same thing as if I bought a new computer and television on credit, and then threatened to quit paying my credit card bill if my wife doesn't change her hair color.

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Response to Larrymoe Curlyshemp (Original post)

Fri Jan 11, 2013, 09:07 AM

9. I'm still uncertain about this minting of a trillion dollar coin...

on the face of it, it sounds like something straight out of The Simpsons, but honestly, how does creating a coin with a value that is arbitrarily assigned to it do anything more than move the accounting numbers from one column to another without really changing anything?

I'm very ignorant on this, can please someone give me a basic reason why this would be a sound idea?

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Response to Javaman (Reply #9)

Fri Jan 11, 2013, 09:20 AM

11. As I see it, our economy works on faith. As long as we believe everything is functioning

it's ok. Our economy is like a giant pyramid scheme. The whole thing will collapse if we lose faith. So minting a physical coin is more for psychological effect than an accounting entry. The value of the coin is no more arbitrary than the debt ceiling.

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Response to rhett o rick (Reply #11)

Fri Jan 11, 2013, 10:04 AM

12. Thanks, that's what I kind of thought. :) nt

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Response to Larrymoe Curlyshemp (Original post)

Fri Jan 11, 2013, 09:15 AM

10. LOL. Sure, mint a coin worth $1 trillion. We couldnt even keep track of tons of shrink-wrapped $100

bills that had to be moved with fork lifts and trucks. How the hell would we keep track of a coin?

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Response to rhett o rick (Reply #10)

Fri Jan 11, 2013, 10:06 AM

13. Let's bet they make the coin the same size as a quarter.

what could go wrong?

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Response to Javaman (Reply #13)

Fri Jan 11, 2013, 10:49 AM

14. Yeah, and it ends up in circulation and everyone mistakes it for a Susan B. Anthony quarter. nm

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Response to Larrymoe Curlyshemp (Original post)

Fri Jan 11, 2013, 11:38 AM

15. Mint just 1 trillion dollar coin, then list it on eBay for 1.5T

perhaps some banker will want what most would consider "unattainable".

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Response to Larrymoe Curlyshemp (Original post)

Sat Jan 12, 2013, 04:32 AM

19. Sign the petition for the coin on the WH's secured site & spread it around (FB, Twtr, emails)

Signatures needed by February 02, 2013 to reach goal of 25,000: 17,355

http://petitions.whitehouse.gov/petition/direct-united-states-mint-make-single-platinum-trillion-dollar-coin/8hvJbLl6

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