Libtards Dream of Magic Coin to Save Economy!


#1

The left-wing blogosphere has been promoting a loony idea to prevent the GOP from being able to cut spending in debt ceiling negotiations. The idea has gained traction with a Bloomberg News contributor and well-known liberal economist Paul Krugman, and being heavily promoted by sites like Huffington Post. So many people are talking about it that it has a twitter hashtag: #mintthecoin.

Read more: Left Swoons for Loony


#2

I was listening to Rush Limbaugh and he was talking about this yesterday. Mint a trillion dollar coin, well say it is worth a trillion then borrow against it. I do not think even China would go for this. They have sold some of the debt they hold to others.


#3

The one thing I have to say about this, is that this plan isn’t any more or less crazy than anything else Congress can and will come up with. Obama has his own agenda here and he just wants to raise the debt limit, no coin is going to be in the picture.


#4

Why not mint a quadrillion dollar coin then which would give us some spending money? In fact why not just mint like a thousand of them which would make everyone in the country rich forever?

Well because it is magical thinking. The idea is that a coin with a trillion on it will cancel a trillion dollars of debt. Well that debt is owed to someone and they will want to be paid back. Whether it be China, Japan, Corporations, social security recipients or other welfare recipients these people will all want to be paid back. If the U.S. pays China who holds around 1.4 trillion of our debt with a single coin the global market will instantly loose confidence in the U.S. dollar. The rest of the world will start getting rid of their dollars which will inturn come flooding back into the States. This will result in hyperinflation and once the population realizes it they will start buying anything they can get their hands on of value. Which will potentiate the problem and build on itself until the dollar compeltely collapses.

Critical thinking is our friend.

U.S. Debt - How Much China Owns


#5

Why not mint a quadrillion dollar coin then which would give us some spending money? In fact why not just mint like a thousand of them which would make everyone in the country rich forever?

Well because it is magical thinking. The idea is that a coin with a trillion on it will cancel a trillion dollars of debt is insane. That debt is owed to someone and they will want to be paid back. Whether it be China, Japan, Corporations, social security recipients or other welfare recipients these people will all want to be paid. If the U.S. pays China who holds around 1.4 trillion of our debt with a single coin the global market will instantly loose confidence in the U.S. dollar. The rest of the world will start getting rid of their dollars which will inturn come flooding back into the States. This will result in hyperinflation and once the population realizes it they will start buying anything they can get their hands on of value. Which will potentiate the problem and build on itself until the dollar compeltely collapses. If the citizendry are not paid their welfare… Well just google Greek austerity and you will get the answer.

U.S. Debt - How Much China Owns


#6

Economists actually believe you can just mint the money and your debt problems will disappear!!!

Want to know when it gets really scary? When I know more than someone who’s described as an ‘economist.’ Now, that’s scary. :eek:


#7

Economists be crazy.


#8

Why bother with the coin? Why not just print a $1 trillion in $1 bills. It’s the same idea isn’t it? Same effect, the one Bremen describes.

[quote=“2cent, post:6, topic:37780”]
Economists actually believe you can just mint the money and your debt problems will disappear!!!

[/quote]Alleged economists! Real, good economists would never say such a thing. Krugman is a disgrace to the word.


#9

Really. Stating myself as being brighter than he is wasn’t saying much, was it? LOL


#10

You can’t use a magic coin to pay off the nation’s debts. You need magic beans for that.

Here’s the problem. The government has contracted obligations, to Americans and foreigners alike. Because we don’t bring in enough revenue, we must borrow from others to pay our bills. But the government can’t borrow above a debt ceiling set by Congress. If the debt ceiling isn’t raised, we could default on our debts. And that could be a financial disaster. The purpose of a platinum coin isn’t to pay off debts, but act as an artificial government-owned asset that could be borrowed against without incurring additional debt to others. When the debt ceiling is raised, the “asset” represented by the coin is replaced by the “asset” of the increased borrowing authority, and the coin is safely doused with disinfectant and melted down.


#11

The coolest thing, though, is if they minted a huge,Yap-like coin, with a hole in the middle, and carried about by, say, Biden and Pelosi in native loincloths.


#12

[quote=“2cent, post:9, topic:37780”]
Really. Stating myself as being brighter than he is wasn’t saying much, was it? LOL
[/quote]Yes it is. Sounds like you have a pretty good understanding of how things work – at least here :smiley:

[quote=“Jazzhead, post:11, topic:37780”]
The coolest thing, though, is if they minted a huge, Yap-like coin, with a hole in the middle, and carried about by, say, Biden and Pelosi in native loincloths.
[/quote]You get one conservative point for the remark.

[quote=“Jazzhead, post:10, topic:37780”]
You can’t use a magic coin to pay off the nation’s debts. You need magic beans for that.

Here’s the problem. The government has contracted obligations, to Americans and foreigners alike. Because we don’t bring in enough revenue, we must borrow from others to pay our bills. But the government can’t borrow above a debt ceiling set by Congress. If the debt ceiling isn’t raised, we could default on our debts. And that could be a financial disaster. The purpose of a platinum coin isn’t to pay off debts, but act as an artificial government-owned asset that could be borrowed against without incurring additional debt to others. When the debt ceiling is raised, the “asset” represented by the coin is replaced by the “asset” of the increased borrowing authority, and the coin is safely doused with disinfectant and melted down.
[/quote]Or they could print 1 trillion $1 bills and burn them when the time came. The differences are semantic, a way to “raise” the debt ceiling by cheapening the dollar. It’s all lunacy.

Do you approve of this as a way we can meet our contractual obligations?


#13

No, I’d prefer that this foolishness be replaced by good faith bargaining by both sides, for the good of the nation. But I’ll need magic beans for that one, too.