Trillion Dollar Coins

[GlockSpock]

http://www.foxnews.com/politics/2013/01/07/funny-money-pundits-float-1-trillion-coin-as-answer-to-debt-ceiling-standoff/

[Guest 6.8 AR]

That article only reinforces to me how stupid these people in DC really are. They are on another planet.

[gjohnsoniv]

That is truly ridiculous.

 

That's like me going to my garage, getting a washer, and then going to the store saying I can buy the place because it's worth $10,000.

[gjohnsoniv]

On the plus side I think we just found the way to buy that titanium rifle posted earlier.

[vontar]

I don't think another country would take it unless it was the size of say FORT KNOX.

[ShamGlock]

Seriously? This is where we are now.

[vontar]

Seriously? This is where we are now.

Well did you expect to go when we got that free ride in the hand basket.

[Guest sL1k]

oh good lord next thing you know we are going to see the commemorative mint tv commercials come on telling you that you can own a piece of history with a copy of the trillion $ coin.

[Mark@Sea]

Yeah, this is right up there with Obama telling Boehner we don't have a spending problem.

 

We're sunk, folks.  Stand by for high seas and heavy rolls.

[Guest 6.8 AR]

What's sad is that the fools are serious about this scam and it's being reported to the public. The mere thought of something

as preposterous as this would land you or I in an insane asylum, if one still exists, and they are about to pull this over on us.

 

Something like this ought to get the pitchforks out.

[BrasilNuts]

 
Something like this ought to get the pitchforks out.

But it won't.

We'll just bitch and moan, but we'll take it just like we have every other slap to the face.

[Dolomite_supafly]

This is lunacy. I cannot fathom them thinking that something like this is going to be fine.

 

What is going to happen if they actually try to pull this off is this. Those we owe money to are going to say it is fine but then they will say that the plastic bowl that once cost $1 now costs $500. Or they will refuse to sell us anything on credit anymore. In either scenario the collapse of the dollar's value will result in us becoming a 3rd world country over night.

 

But there is something good to say about it. Those who owe money will be able to pay them off easier while those with stockpiles of money will see those stockpiles become worthless overnight. The ones who will loose the most will be the uber rich, not those who owe the most. Those with billions of dollars will realize that they can no longer live like they did before because those billions they have saved are worth a lot less. But for those of us on the bottom who owe it would make paying off our debts that much easier.

 

Releasing trillions of dollars will devalue the dollar so much that we will have to use backpacks to carry our money to buy bread. The federal reserve will have to print $10,000 notes so we won't have to carry as much. It will be much like Zimbabwe. There a 500 million dollar note costs about $10.

 

Dolomite

[Guest 6.8 AR]

We are a third world country, already, and we have ignored the last lesson. Until the last liberal and statist is banished

from government, this will be the cause of those things people are constantly warned to not talk about around here. It

isn't going to get any better any time soon. There are a lot of folks in denial. I'm not.

[GlockSpock]

It will be much like Zimbabwe. There a 500 million dollar note costs about $10.

 

They also expire from what I understand.

http://blogs.reuters.com/felix-salmon/2009/04/22/when-banknotes-expire/

[Guest CigarGuy]

I had convinced myself that NOTHING this administration did would surprise me anymore.

This gives me doubt.......... :surrender:

[vontar]

hmm

 

[gregintenn]

If that'll work, why not print a roll or two of them, and we'll not need to pay taxes ever again.

 

I can't wait until these idiots are in charge of my healthcare!

[Guest 6.8 AR]

They also expire from what I understand.

http://blogs.reuters.com/felix-salmon/2009/04/22/when-banknotes-expire/

Vapor money. Interesting.

[Guest Lester Weevils]

This is lunacy. I cannot fathom them thinking that something like this is going to be fine.

 

What is going to happen if they actually try to pull this off is this. Those we owe money to are going to say it is fine but then they will say that the plastic bowl that once cost $1 now costs $500. Or they will refuse to sell us anything on credit anymore. In either scenario the collapse of the dollar's value will result in us becoming a 3rd world country over night.

 

But there is something good to say about it. Those who owe money will be able to pay them off easier while those with stockpiles of money will see those stockpiles become worthless overnight. The ones who will loose the most will be the uber rich, not those who owe the most. Those with billions of dollars will realize that they can no longer live like they did before because those billions they have saved are worth a lot less. But for those of us on the bottom who owe it would make paying off our debts that much easier.

 

Releasing trillions of dollars will devalue the dollar so much that we will have to use backpacks to carry our money to buy bread. The federal reserve will have to print $10,000 notes so we won't have to carry as much. It will be much like Zimbabwe. There a 500 million dollar note costs about $10.

 

Dolomite

 

Hi Dolomite I agree with most of your prognostications, except that part about wiping out rich folks.

 

If wages track inflation and one can find a job, then it will be possible to pay off a house mortgage with pocket change. However I don't think wages will track inflation, and if they do, then jobs would be very scarce. Wages would stay low and the dollar become more worthless until USA wages equalize with china and indonesia and such. Possibly lower than china wages until we reopen factories fueled by equally low wages as china.

 

It would wipe out anybody with lots of dollar-based assets, savings accounts, bonds (including gov bonds). It MIGHT wipe out anyone on a TRULY fixed income such as a person who invested a half-million of life savings into an annuity on retirement. However, SOME of the annuity folks might not get wiped out, depending on how the annuity contract is written and how it is administered. If the annuity is heavily invested in bonds then they are hosed. If the annuity is based in such as real estate and stocks, and the contract doesn't limit max yield, and the administrators are not weasels (unlikely I know but maybe not impossible) then the annuity payments might have a chance of tracking inflation.

 

Rich folks unwise enough to be heavily invested in bonds, and unwise enough not to get out of them quick and stick some fool with the bonds, then such rich folk would get wiped out.

 

However, a rich man who owns 10 million of real estate, and the real estate REALLY IS worth 10 million current dollars, then when a dollar is worth a dime, then his real estate will be worth 100 million and he'll still be doing fine. Similarly a rich man who owns 10 million of GOOD stock, that REALLY IS worth 10 million current dollars, then when a dollar is worth a penny that stock will be worth a billion dollars and he'll still be doing fine.

[LagerHead]

I really don't see how this is any different than how they already print our money. Our fiat currency is not backed by anything and every time they print several hundred billion dollars to prop up another taxpayer supported business that is "too big to fail" we devalue our dollar that much more. The Federal Reserve, the one organization that was sold us suckers as protectors of the economy and the value of the dollar has done more harm to both than any other organization. It's time, not to audit the Fed, but to abolish it completely. It is nothing but a cartel created to protect big banks at the expense of the taxpayers and it has done a marvelous job at that.

[Guest Lester Weevils]

The Federal Reserve can print money by "monetizing the debt" and buying US treasuries to "keep forever", if the gov wants to issue so many bonds that there are not enough worldwide fools to buy them all. But I don't think the Fed can do that trick if it would exceed the Federal Debt Limit. The coin magic trick is an Executive branch "apparently constitutional" end-run around congress so the president can print "virtually unlimited" money without hitting the debt ceiling or coming to congress hat-in-hand to raise the debt ceiling, and I don't think the Executive branch would even need the Federal Reserve involved to do it thataway.

 

Both monetizing the debt and the magic coin could lead to crashing the dollar, though. Once you open the magic coin door, katy bar the door. Mint a magic coin to pay off China and mint another magic coin to pay off Saudi Arabia. Won't matter if they quit lending us money, because the gov will just keep minting more magic coins and the loans won't be necessary any more. The rest of the world might be kinda sore about it and probably quit selling us stuff, as Dolomite mentioned. Or at least they would quit taking dollars in trade.

[mcurrier]