Krugman writes: "So, have you heard the one about the trillion-dollar coin? It may sound like a joke. But if we aren't ready to mint that coin or take some equivalent action, the joke will be on us."
Portrait, New York Times columnist Paul Krugman, 06/15/09. (photo: Fred R. Conrad/NYT)
Coins Against Crazies
11 January 13
o, have you heard the one about the trillion-dollar coin? It may sound like a joke. But if we aren't ready to mint that coin or take some equivalent action, the joke will be on us -- and a very sick joke it will be, too.
Let's talk for a minute about the vile absurdity of the debt-ceiling confrontation.
Under the Constitution, fiscal decisions rest with Congress, which passes laws specifying tax rates and establishing spending programs. If the revenue brought in by those legally established tax rates falls short of the costs of those legally established programs, the Treasury Department normally borrows the difference.
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More than a bit sad, along with GOP terrorists, there are politician clowns/puppets among Dems. also these days. Think Wikileaking and/or forced listening to truthtellers, such as the marvelous and brilliant journalists, whistleblowers, peace and justice activists who make up the plaintiffs in Hedges, et. al. v. Obama, et. al., would be torture for such Dems., also.
One hell of a lot we've gotta do to...
UNDO THE COUP !
I agree: UNDO THE COUP !
What a seriously irresponsible comment from you and Camus.
.
We automatically modify taxes and benefits with the SS top earning amount and the benefits increasing based on inflation. We need to expand the concept dramatically so that tax rates will automatically alter based on various economic indicators. As part of that we should determine how much tax income is really required to restrain overzealous spending using the Platinum coins, which if managed correctly and dynamically could revolutionize how we tax and how we spend.
We can choose to own our own economy as a Democracy or we can allow it to become a monarchy. We are at a crossroads.
I am a Democrat and throwing the words "terrorist" remind me of Bush/Cheney tactics. Demonize a group in the worst way as a way to squash them.
Let's think of the following scenario.
Democrats start labeling groups like the GOP and members as terrorists and placed on watch lists, groups like the NRA get labelled as terrorists and therefore placed on watchlists as well (I've seen such calls to action by some readers).
4 years, 8 years from now Republicans may find themselves in control of the White House, don't you think they would retaliate in the same way? Don't you think they would start labeling groups like Greenpeace, NOW, labor groups, immigrants rights groups, gay rights groups as terrorist organizations? Placed on watch lists as a result?
Again, don't be irresponsible.
Lets just put the entire debt and deficit madness behind us. Use these coins to not only prevent the Right Wing crazies from taking the world's economy hostage, but use it to create value for the latent wealth of the US economy that is being held hostage by the wealth hoarding of the 98%.
Really, lets try it. Very little else has worked.
And how may I ask, does a coin become worth that much -just 'cause the mint or some high-level bureaucrat says so?
Maybe if I melted my residual foreign coins and cast them into a hybrid one with my mug shot on it, I could get somebody in DC to bless it to the declared value of -say- $2Bn???!!!
Sheesh!
The Budget is now, and has been for quite a while, sheer trickery. Chicanery gone wild. Individuals, or private Business Entities, would be prosecuted, as well as 'declared bankrupt', for similar activity .
The worst part of ALL this is what is overlooked:
WASTE, FRAUD, EMBEZZLEMENT, especially, but not exclusively, within the 'Sacrosanct Arena' of Defense Spending; where unnecessary, naturally expensive technology wastes billions annually, WITHOUT AUDIT !
Wolves in the Hen House.
Here, alone, the budget could be balanced!
http://www.wired.com/business/2013/01/trillion-dollar-coin-inventor/
The MMT blog is well worth looking at for trying to get a handle on their broader ideas.
http://neweconomicperspectives.org/p/modern-monetary-theory-primer.html
I have been doing some reading on the new economic perspective link and obviously from my posts have bought into the theory. Still, my biggest reservation is that we need to have built in some cutoff mechaniasm or restrictions about what can be paid for by printing the money then spending it. My first assumption is that all military expenses should be solely funded via taxes. Perhaps, in order to use the print money option for funding anything Congress has to pass the funding by a super majority. I am concerned that when something appears free, human nature will result in over spending, and the sillies that talk about no work, free money will turn out correct.
Payback for destroying the American dream will be very, very sweet. The neo-liberal economic agenda has had their way for the past 30+ years, how has it worked out for you?
Every one with half a working brain knows we can never repay what we have already borrowed, especially in the face of Boomers not only retiring but just in general getting old and needing more and more medical services..
We have become what we feared. You pretend to work and I'll pretend to pay you... not that those working aren't but they can only support so much. And it isn't this much debt plus half the nation either retired or disabled or unable.
Just insane and unbalanced. I have thought for years that this was it, yet things just keep getting more and more disjointed and dysfunctional.. It is just a matter of time and timing before something brings all this BS down.
Possible methods of bypassing the debt ceiling
* Fourteenth Amendment: Section Four of the Fourteenth Amendment to the US Constitution states that the validity of the public debt shall not be questioned...
* Minting coins in extremely high denominations: a US$5 trillion coin could be minted and deposited with the Federal Reserve and used to buy back debt, thus making funds available.
* Monetizing gold; The Secretary of the Treasury is still authorized to monetize 8,000 tons of gold, with a market value worth over $1,600 per ounce.
* Converting fractional reserve to full reserve banking: the debt could be eliminated by raising bank reserve requirements, converting from fractional reserve banking to full reserve banking.
Paul Krugman and Robert Reich have called attention to a couple of these possible methods of bypassing the debt ceiling.
From a Huffington Post article,"14th Amendment Debt Ceiling Option: House Democrats Support Obama's Use Of Power,"
"Rep. Peter] Welch...said 'if there is the ultimate act of congressional irresponsibilit y by having the United States default on its obligations, we encourage the president to rescue the country.' He said ultimately the courts would have to decide what authority the amendment confers on the president."
Paul Krugman and Robert Reich agree. And it sounds good to me.
For an interesting take on that point of view see this interview with economicst James Galbraith.
http://voices.washingtonpost.com/ezra-klein/2010/05/galbraith_the_danger_posed_by.html
If you can take cash from Savings Capital example(Fort Knox)to bail banks, then they lend to government Expense Budget as Sovereign Bonds, they can save interest and fees difference, take from hoardin government Funds and lend as bailout to government expense budget? Rit?
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