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Thread: Can Trillion Dollar Coins Save the Economy?

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    Can Trillion Dollar Coins Save the Economy?

    Can Trillion Dollar Coins Save the Economy? - Yahoo! News

    I just don't understand the argument for this solution. In my mind, this is an equivalent of defaulting on our debt.

    But when I think of differently, from the 'inflation' standpoint instead, it seems this is exactly what all of us "Flat-Tax" promoters have been asking for...

    If $1T were created to pay down the debt, which equally devalued every dollar in the economy equally, say by 5%, we would all have a buying-power income decrease of 5%. Whether you make $1M/yr or $20k/yr, your pay is decreased 5%...

    For once, I won't argue w/ the Keynesians - you go ahead and do what you think is best. You'll be your own undoing.

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    Re: Can Trillion Dollar Coins Save the Economy?

    Why do you think Treasury bonds are issued in the first place, as opposed to just creating currency to pay for everything?
    "I do not claim that every incident in the history of empire can be explained in directly economic terms. Economic interests are filtered through a political process, policies are implemented by a complex state apparatus, and the whole system generates its own momentum."

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    Re: Can Trillion Dollar Coins Save the Economy?

    Money doesn't even have to be printed. Just move the decimal places in government computers. I wouldn't, but that is all you really have to do. Devaluing the dollar makes a lot of economic sense, but then there is what happens in reality when you do......

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    Re: Can Trillion Dollar Coins Save the Economy?

    Quote Originally Posted by Khayembii Communique View Post
    Why do you think Treasury bonds are issued in the first place, as opposed to just creating currency to pay for everything?
    I'm not sure I understand your point... I'm not in favor of treasury bonds/government debt, but to answer your question: Treasury bonds are created to sell our debt to buyers in order to maintain a level of spending higher than our level or revenue. The idea is that in the future, by the time the bond matures ideally (HA!), the government will have revenue in excess of its expenditures and can pay for the previous over-spending, with interest.

    Again - why are you asking me to clarify this?

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    Re: Can Trillion Dollar Coins Save the Economy?

    From the article:
    At that point, the American people must decide whose face will adorn the trillion dollar trinket. The process to determine the "specs" of the coin, U.S. Mint Public Affairs Specialist Genevieve Billia warns, must be "determined by legislation," creating the potential for another congressional impasse
    I've seen more than a few democrats call for this over the past month or so. At least the fact that they have to get congressional approval for the design means that republicans can act like the grown-ups and stop it, which will obviously lead to more whining democrats claiming that republicans just won't compromise.

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    Re: Can Trillion Dollar Coins Save the Economy?

    This is the third or forth thread I have seen on this idea here.

    It is essentially default.
    We went from sticks and stones may break my bones but words will never hurt me to safe spaces.

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    Re: Can Trillion Dollar Coins Save the Economy?

    If the US does this.. you have to remember you are not the only country that gets hit and hit hard. There are quite a few countries that either have bound their currency to the dollar or even worse actually use the dollar as their currency. They too could easily go bust over night.
    PeteEU

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    Re: Can Trillion Dollar Coins Save the Economy?

    Quote Originally Posted by fredmertzz View Post
    I'm not sure I understand your point... I'm not in favor of treasury bonds/government debt, but to answer your question: Treasury bonds are created to sell our debt to buyers in order to maintain a level of spending higher than our level or revenue. The idea is that in the future, by the time the bond matures ideally (HA!), the government will have revenue in excess of its expenditures and can pay for the previous over-spending, with interest.

    Again - why are you asking me to clarify this?
    I didn't ask you to explain what government debt is. I asked you to explain why federal debt securities are used instead of simply creating money to fund spending.

    Once you answer that question you will have your answer as to why such a coin will never be created.

    Also, as an aside, I don't know why you brought up Keynesians in your OP. They would obviously oppose this.
    "I do not claim that every incident in the history of empire can be explained in directly economic terms. Economic interests are filtered through a political process, policies are implemented by a complex state apparatus, and the whole system generates its own momentum."

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    Re: Can Trillion Dollar Coins Save the Economy?

    Can Trillion Dollar Coins Save the Economy?
    no


    . .

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    Re: Can Trillion Dollar Coins Save the Economy?

    Quote Originally Posted by buck View Post
    From the article:


    I've seen more than a few democrats call for this over the past month or so. At least the fact that they have to get congressional approval for the design means that republicans can act like the grown-ups and stop it, which will obviously lead to more whining democrats claiming that republicans just won't compromise.
    Know what man...republicans when they are in power call for the exact same thing...the debt limit has risen with every republican president...its not just a democrat thing.

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