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DanTex

(20,709 posts)

15. No. It's an accounting trick that allows us to borrow money without issuing more bonds.

Reply to hughee99 (Reply #14)

Sat Jan 12, 2013, 03:00 PM

Jan 2013

Thus allowing the government to pay its obligations even if congress doesn't raise the debt ceiling. Obviously, it would be better to just sell bonds the normal way, but if congress doesn't allow this, then we have to find another way, otherwise the government will default and the consequences will be catastrophic.

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The trillion dollar coin is not about "printing away the debt". [View all] DanTex Jan 2013 OP

I was yelling at the screen a little too. I hate it when I do that. Squinch Jan 2013 #1

Agreed. Proceed Mr. President. politicaljunkie41910 Jan 2013 #5

LOVE that idea. Squinch Jan 2013 #8

Well, there is a limit. DanTex Jan 2013 #12

The trillion dollar coin doesn't have to be paid back. FarCenter Jan 2013 #2

But it will be payed back. DanTex Jan 2013 #3

Only if the debt ceiling is raised can the coin be bought back FarCenter Jan 2013 #4

That, or eventually when we start running a surplus, we pay it back in that way. DanTex Jan 2013 #6

But the government has to spend the trillion dollars FarCenter Jan 2013 #7

Right, but not all at once. DanTex Jan 2013 #9

The Fed doesn't need to sell bonds at all in order for the Treasury to spend the deposited coin FarCenter Jan 2013 #16

It doesn't need to, but it can (and it will). DanTex Jan 2013 #18

The Fed is actually buying bonds every month in order to implement quantitative easing FarCenter Jan 2013 #19

So? What difference does that make? DanTex Jan 2013 #21

Fed selling of bonds doesn't change the debt ceiling FarCenter Jan 2013 #23

That's the point -- the Fed can sell bonds without raising the ceiling. Read Krugman again. DanTex Jan 2013 #25

Surplus? Common Sense Party Jan 2013 #24

It's a legal and economic hack, and an effective one, which is why the right-wing's going apeshit. backscatter712 Jan 2013 #10

Sweet, if it has no ill effects, lets print out hundreds of those fuckers hughee99 Jan 2013 #11

Well, it's not "free money". Eventually it has to be payed back, just like real debt. DanTex Jan 2013 #13

So it's an accounting trick that temporarily allows us to appear to have more money hughee99 Jan 2013 #14

No. It's an accounting trick that allows us to borrow money without issuing more bonds. DanTex Jan 2013 #15

No, it is an accounting trick that allows us to create money out of nothing. FarCenter Jan 2013 #17

Umm, yeah, all fiat money is created out of nothing. We're not on the gold standard any more. DanTex Jan 2013 #22

That doesn't happen if the Treasury uses the coin(s) only to retire existing debt. Jim Lane Jan 2013 #27

Yeah, I don't see where the $1 trillion number came from. DanTex Jan 2013 #28

It starts as one trillion dollar coin brandonk Jan 2013 #20

For you probably pizza. Kalidurga Jan 2013 #26

They should mint a quadrillion dollar version so we don't have to worry about debt for a long time! Throd Jan 2013 #29

How on earth could the Fed sell those bonds? Yo_Mama Jan 2013 #30

What do you mean "how"? On the open market. DanTex Jan 2013 #31