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Reply #20: The argument is if you use it to retire current debt you cause no inflation. [View All]

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dkf Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-31-11 06:48 PM
Response to Reply #15
20. The argument is if you use it to retire current debt you cause no inflation.
So the most you could do is outstanding debt.
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  -Minting the $1 Trillion platinum coin would NOT be inflationary. girl gone mad  Jul-31-11 05:49 PM   #0 
  - K&R  amborin   Jul-31-11 05:50 PM   #1 
  - The other concern is the platinum/precious metals market. Can you address this, please ?  steve2470   Jul-31-11 05:55 PM   #2 
  - The effect on the precious metals market is no different than any individual buying an oz or so of..  JVS   Jul-31-11 06:03 PM   #4 
  - They could use about $100 worth of platinum to create a coin with a $1 Trillion face value  Egalitariat   Jul-31-11 06:08 PM   #6 
  - No effect. This is coinage, not volume/weight.  Ruby the Liberal   Jul-31-11 06:35 PM   #14 
     - I heard that there are standards for the vaue of the coin  OrwellwasRight   Jul-31-11 06:56 PM   #23 
        - I think this is why the requirement for platinum was added  Ruby the Liberal   Jul-31-11 07:09 PM   #25 
  - How does that get any of the bills paid?  dkf   Jul-31-11 05:55 PM   #3 
  - When a bond is retired/redeemed, the debt is removed from the books.  girl gone mad   Jul-31-11 06:06 PM   #5 
  - Why stop at $1 trillion?  dkf   Jul-31-11 06:14 PM   #11 
     - Why stop at the entire amount ($14T)?  Zebedeo   Jul-31-11 06:37 PM   #15 
        - The argument is if you use it to retire current debt you cause no inflation.  dkf   Jul-31-11 06:48 PM   #20 
        - It looks like you answered your own question.  girl gone mad   Jul-31-11 06:48 PM   #21 
  - When we retire $1T worth of debt  drm604   Jul-31-11 06:08 PM   #7 
  - Question  woolldog   Jul-31-11 06:08 PM   #8 
  - No. Retiring the bonds would put us $1T below the current ceiling,  drm604   Jul-31-11 06:10 PM   #9 
     - I saw your repsonse to the other poster after I posted my question.  woolldog   Jul-31-11 06:14 PM   #10 
     - one more question:  woolldog   Jul-31-11 06:17 PM   #12 
        - Good question.  drm604   Jul-31-11 06:30 PM   #13 
  - Great  Zebedeo   Jul-31-11 06:38 PM   #16 
  - I agree with you for the most part. However, there is a limit to this, and that is the amount of  BzaDem   Jul-31-11 06:38 PM   #17 
  - Dupe. Sorry.  drm604   Jul-31-11 06:46 PM   #18 
  - I think you may be misunderstanding the idea.  drm604   Jul-31-11 06:48 PM   #19 
     - The problem is that if we buy the bonds from any non-Fed entity, that is injecting a huge amount of  BzaDem   Jul-31-11 07:04 PM   #24 
        - Money supply would be unchanged.  girl gone mad   Jul-31-11 07:18 PM   #27 
        - If the Treasury uses the trillion dollar coin to buy bonds from private markets, it will increase  BzaDem   Jul-31-11 07:55 PM   #29 
           - It has no impact on money supply.  girl gone mad   Jul-31-11 09:46 PM   #33 
              - Your entire theory relies on bonds being equivalent to cash, and that is ONLY true in a liquidity  BzaDem   Jul-31-11 11:08 PM   #34 
                 - No, it doesn't and no it isn't  girl gone mad   Jul-31-11 11:36 PM   #36 
        - I think buying them from the Fed is the better idea.  drm604   Jul-31-11 07:51 PM   #28 
           - Exactly. It would result in QE/QE2 staying in the economy, which is likely what the Fed was going to  BzaDem   Jul-31-11 07:56 PM   #30 
           - That's another option..  girl gone mad   Jul-31-11 08:05 PM   #31 
              - Yes, exactly. Buying them from the Fed would truly have no effect, and the Fed would be FORCED to  BzaDem   Jul-31-11 11:10 PM   #35 
  - PS Inflation is good for people who owe money (i.e., US) . . .  OrwellwasRight   Jul-31-11 06:52 PM   #22 
     - That's great in theory, however, it's not like everyone's wages  iris27   Jul-31-11 07:13 PM   #26 
        - It's not theory, it's economic facts.  OrwellwasRight   Jul-31-11 08:07 PM   #32 

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