obama shoudl issue the trillion dollar coin

[rdking647]

fuck the GOP....
rather than let the teahaddists screw the world economy over int heir temper tantrum he should just go ahead and order the treasury to produce a trillion dollar coin.
i know he reuled it out before but he can still do it.
issue the coin and deposit it in the federal reserve. the fed would really have no choice but to accept it as under teh law it would be legal tender.

under the law
31 U.S.C. 5112(k) as originally enacted by Public Law 104-208 in 1996:

The Secretary may mint and issue bullion 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.

In 2000, the word "bullion" was replaced with "platinum bullion coins"



it gets around any issue with the 14th amendment.
it prevents the us from going over the debt ceiling
the government could in theory do it multiple time in 100b increments.
at the same time obama shoudld do whatever he can to make the teahaddisit suffer.
start closing every federal institution in their districts he can.
cut off all federal funds to their districts.
cut off retirement benefits and ss checks in their districts

rather than a repeat of 2008 or the depresison of teh 30's obama shoudl take drastic steps like this to preserve the country

[frazzled]

1. It won't work

EK: If you’re this worried and the consequences are this bad, why not do something like declaring the debt ceiling unconstitutional under the 14th amendment or minting the coin?

MP: It’s been my view and the view of pretty much everyone in Treasury and everyone in the administration that if there was a viable legal strategy that could take the threat of default off the table we would eagerly embrace it. It’s not as though people in the administration were or are closed to cool, interesting, viable possibilities. But the things we’ve been presented haven’t withstood that scrutiny.

The coin is a clever, nifty idea but it has problems. The one that gets overlooked the most is it wouldn’t actually make everything normal after it was invoked. It would be subjected to all kinds of challenges and litigation. As a straightforward matter the Federal Reserve wouldn’t give Treasury a trillion dollars for that coin. We looked carefully at it, but for both practical and legal reasons, the legal reason being the law obviously wasn’t meant for anything like this and the practical reason being that the Federal Reserve would need to cooperate and wouldn’t, it wouldn’t work.

The 14th Amendment shares similar problems in which you would invoke a constitutional crisis of sorts. One side would say the president broke the law and should be impeached. That would occupy all the oxygen in Washington. That’s not a reason not to do it if it’s the right thing to do. But if the objective is keeping our status as the safest and best investment in the world you’ve created all kinds of doubts about us. I don’t think proponents have thought enough about what would happen after you did it.

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/10/03/why-we-wont-mint-the-coin-why-we-cant-just-pay-off-bonds-and-other-scary-debt-ceiling-facts/

[rdking647]

4. i dont think the fed would have much say

the treasury could mint the coin under its powers.
who knows if teh fed would cooperate or not. bernanke,a student of the great depression could easily decide that the coin is a better solution than a default. and even if he didnt agree im not sure he would have a choice. since the law allows the treasury to mint the coin in any denomination it wishes teh fed would really have no choice but to accept it

the law my have not been intended for this but who would have thought a minority of part of teh house could bring us to this point

no matter what we would do their would be some kind of crisis. the trillion dollar coin seems to me to be the best way to stave off a great depression.

[frazzled]

6. Minting the coin is not the issue

And the guy who is explaining this is FROM Treasury (or was). I'll take his word that the Fed would need to cooperate for the minted coin to be worth anything.

[pnwmom]

9. It's not just the Fed. It's all potential bondholders. Do you think China,

which buys a lot of our bonds, would feel good about them being backed by a trillion dollar coin? Or would they think it was a kind of sleight of hand -- as it is?

[Loudly]

2. It's as honest a device as the so-called "Hastert Rule."

And the recent collapse in the gold price indicates that the danger of devaluing the dollar is minimal.

Hell, if the Federal Reserve can create trillions of dollars out of literally nothing, then the Treasury should be able to do so out of an ounce of platinum.

I like the alchemy. What does Jack Lew say?

Can we put Reagan's face on it?

[baldguy]

3. .

[Initech]

5. They tried that on the Simpsons, it didn't work.

[Nuclear Unicorn]

7. Nothing has value except what someone else is willing to give you for it.

You might be the awesomest artist in the world but if no one is willing to pay you for your paintings then your work is worthless, literally.

A platinum coin with the word's "One Trillion Dollars" minted unilaterally by a president during a fiscal and constitutional crisis might fetch a few grand as a novelty item but no real stakeholder is going to count it as a trillion dollars. Do you honestly think the Chinese or anyone would accept it as repayment for a $1 trillion of our treasure bonds they bought?

[rdking647]

8. they dont have to

its an accounting gimmick.
the coin gets deposited in the fed. that reduces our debt by 1t so were under the debt ceiling

then the treasury goes about its normal business. its not really being used for anything,its taking advantage of a loophole

[Takket]

10. coin image

I'd like to see Michelle Bachmann's face with her beedy little eyes on the coin. just to piss her the hell off. on the back they can put gay bar, to further piss republicans off.