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Opinions/Editorials Title: LET’S END THIS DEBT CEILING DEBATE WITH A $1 OZ. $1T COIN A reader points out a very interesting loophole in the debt ceiling debate that would give the US Treasury the ability to tell the US Congress to take their fearmongering and shove it you know where. Reader “Beowulf” notes: “No, Tsy isn’t authorized to just “print” money, the Federal Reserve Act gives that power to the Fed, However, the Coinage Act grants the Secretary of the Treasury rather broad coin seigniorage authority. Geithner could sidestep the debt ceiling this afternoon by ordering the West Point Mint to coin a 1 oz. $ 1 trillion coin. Tsy can then present the jumbo coins at the NY Fed to buy back $1 trillion in Fed-held debt (the Fed has to accept it, a creditor can’t refuse legal tender paid in to settle a debt): (h) The coins issued under this title shall be legal tender… (k) The Secretary may mint and issue platinum bullion coins and proof platinum coins in accordance with such specifications, designs, varieties, quantities, denominations, and inscriptions as the Secretary, in the Secretary’s discretion, may prescribe from time to time.” The simple threat of doing this would end this debate right here and right now. It’s time for Congress to stop playing Russian roulette with the US economy. If you want to take a stand on spending then do so before you pass legislation that causes us to run up into the debt ceiling. Don’t use some phony law to try to scare people into thinking that we are Greece (something that’s entirely impossible anyhow). Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest Begin Trace Mode for Comment # 1. #1. To: Badeye, A K A Stone, hondo68, Fred Mertz, Godwinson, go65, war, no gnu taxes, Skip Intro, ferret mike, jwpegler, brian s, mcgowanjm, Capitalist Eric, Mininggold (#0) Sounds crazy, but...
Replies to Comment # 1. Ron Paul suggested that the Fed should destroy the bonds they bought which would have the same effect except there wouldn't be a 1T coin floating around causing potential legal, financial and poltical problems if it fell into the hands of a unsympathetic country that wanted to use it to buy more bonds.
#4. To: lucysmom (#1) And that's when you get hyperinflation. Adding actual zero's to the coin/paper of the realm. The problem will be when our colonies stop accepting it. And that's why we won't have inflation. We must lose our Empire first. Get isolated.
#33. To: lucysmom (#1) Crazy is raising the debt limit. The rationalizations for doing so are very similiar to a drunk's reasoning for demanding he be given another bottle of Jack Daniels.
#67. To: lucysmomBadeye, A K A Stone, hondo68, Fred Mertz, Godwinson, go65, war, no gnu taxes, Skip Intro, ferret mike, jwpegler, brian s, mcgowanjm, Mininggold (#1) Sounds crazy, but... Not only is this idea crazy, it's flat-out STUPID. Unless made of $1T of precious metals, it would simply be another form of fiat money. In REAL terms, a $1T gold coin would weigh 40453074.4 pounds. This, by the way, works out to the approximate weight of not one, but two Ticonderoga-class guided-missile cruisers, as shown here: Were it made out of platinum, it would weigh 36231884.0579 pounds- the same mass as the Spanish aircraft carrier Spanish aircraft carrier Principe de Asturias, below:
Were you to have an inkling of economics, you'd already know that... On a more basic level, Geithner has been in the pocket of the big banks for years. The Federal Reserve is owned by those same big banks... You think Geithner- little pus-bag that he is- would ever do anything against the will of the banks?
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