Tuesday, January 8, 2013

Trillion dollar platinum coin

Steven Colbert's take on it:

Voltron's take: It's silly for congress to pass a budget and not fund it properly.  Congress were the ones that gave the executive branch the authority to issue platinum legal tender coins.  Clearly it violates the spirit of the law and it's silly to argue about the law with the people who make the laws, but in this case it's just a way to break the filibuster gridlock in the Senate.  If the Senate can't get enough votes to raise the debt ceiling, it probably won't get enough votes to repeal the coin law.  Obama should do it.

It also brings to light the absurdity of our fiat money system.


Anonymous said...

Why not just take the next step and mint the inifinity coin? Or mint 20 trillion dollars, pay off the debt, and then have around 3 trillion to blow? And why waste platinum? I would just as soon have them mint these coins on printer paper on an HP DeskJet and then we could bank the savings on the metal too!

Gerard said...

Debt that can't be paid won't be paid. Not with real purchasing power anyway. All the unfunded liabilities and other government promises are a kind of debt too. Which promises get broken? Which type of debt takes priority? As we saw with the GM bankruptcy, the government has no qualms overriding the capital structure (I.e., who gets paid first)

An unfair fiat money system has created debt slaves. You're right, we should print the infinity coin on toilet paper and end the charade.