The $1 Trillion Platinum Coin Solution

[HowardRoark]

As if this could get any more ridiculous....

http://edition.cnn.com/2011/OPINION/...html?hpt=hp_c1

Are there other ways for the president to raise money besides borrowing?

Sovereign governments such as the United States can print new money. However, there's a statutory limit to the amount of paper currency that can be in circulation at any one time.

Ironically, there's no similar limit on the amount of coinage. A little-known statute gives the secretary of the Treasury the authority to issue platinum coins in any denomination. So some commentators have suggested that the Treasury create two $1 trillion coins, deposit them in its account in the Federal Reserve and write checks on the proceeds.

[aletoledo]

It would be theft for the US to print federal reserve currency without authorization by the Fed. The Fed would only authorize such a minting if the associated debt was created.

Those suggesting this simply don't understand how a debt based currency operates.

[DarkLight]

Originally Posted by aletoledo

It would be theft for the US to print federal reserve currency without authorization by the Fed. The Fed would only authorize such a minting if the associated debt was created.

Those suggesting this simply don't understand how a debt based currency operates.

As if:
a) the FED understood how a debt based currency operated and
b) the FED gave a damn

--DL

[Sundsvall]

Originally Posted by HowardRoark

As if this could get any more ridiculous....

http://edition.cnn.com/2011/OPINION/...html?hpt=hp_c1

It would a be an improvement. Expand the money supply without adding interest to the tab.

Much better than issuing bonds only to repurchase it ourselves, and then owe the FED the balance plus interest.

They should default on all the bonds held by the FED and the Social Security Trust and replace them with non-debt fiat money. That should lighten the interest load significantly.

They should also not pay the FED the coming interest payment. Afterall, where did the FED get this money to lend in the first place? I rest my case.