Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
General Discussion
Showing Original Post only (View all)Krugman: Be Ready To Mint That Coin [View all]
Be Ready To Mint That Coin
Should President Obama be willing to print a $1 trillion platinum coin if Republicans try to force America into default? Yes, absolutely. He will, after all, be faced with a choice between two alternatives: one thats silly but benign, the other thats equally silly but both vile and disastrous. The decision should be obvious.
For those new to this, heres the story. First of all, we have the weird and destructive institution of the debt ceiling; this lets Congress approve tax and spending bills that imply a large budget deficit tax and spending bills the president is legally required to implement and then lets Congress refuse to grant the president authority to borrow, preventing him from carrying out his legal duties and provoking a possibly catastrophic default.
And Republicans are openly threatening to use that potential for catastrophe to blackmail the president into implementing policies they cant pass through normal constitutional processes.
Enter the platinum coin. Theres a legal loophole allowing the Treasury to mint platinum coins in any denomination the secretary chooses. Yes, it was intended to allow commemorative collectors items but thats not what the letter of the law says. And by minting a $1 trillion coin, then depositing it at the Fed, the Treasury could acquire enough cash to sidestep the debt ceiling while doing no economic harm at all...So if the 14th amendment solution simply declaring that the debt ceiling is unconstitutional isnt workable, go with the coin.
- more -
http://krugman.blogs.nytimes.com/2013/01/07/be-ready-to-mint-that-coin/
Should President Obama be willing to print a $1 trillion platinum coin if Republicans try to force America into default? Yes, absolutely. He will, after all, be faced with a choice between two alternatives: one thats silly but benign, the other thats equally silly but both vile and disastrous. The decision should be obvious.
For those new to this, heres the story. First of all, we have the weird and destructive institution of the debt ceiling; this lets Congress approve tax and spending bills that imply a large budget deficit tax and spending bills the president is legally required to implement and then lets Congress refuse to grant the president authority to borrow, preventing him from carrying out his legal duties and provoking a possibly catastrophic default.
And Republicans are openly threatening to use that potential for catastrophe to blackmail the president into implementing policies they cant pass through normal constitutional processes.
Enter the platinum coin. Theres a legal loophole allowing the Treasury to mint platinum coins in any denomination the secretary chooses. Yes, it was intended to allow commemorative collectors items but thats not what the letter of the law says. And by minting a $1 trillion coin, then depositing it at the Fed, the Treasury could acquire enough cash to sidestep the debt ceiling while doing no economic harm at all...So if the 14th amendment solution simply declaring that the debt ceiling is unconstitutional isnt workable, go with the coin.
- more -
http://krugman.blogs.nytimes.com/2013/01/07/be-ready-to-mint-that-coin/
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
73 replies, 8042 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (67)
ReplyReply to this post
73 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
The scene of the Boston Tea Party on the back might be most appropriate, though.
RomneyLies
Jan 2013
#50
Anyone else think it's funny that you can just make yourself a trillion-dollar coin?
TwilightGardener
Jan 2013
#5
Those things always give change in Susan B. Anthony or Sacajawea dollar coins
slackmaster
Jan 2013
#10
Imagine going to the local 7-11 and buying a Moon Pie and an RC Cola with it!
Buns_of_Fire
Jan 2013
#26
Paul Krugman won the Nobel Prize for Economics and he seems to think that one may be needed.
Nye Bevan
Jan 2013
#23
Hmmm... Jeremy Renner as the high strung sidekick or Mark Ruffalo as the extroverted sidekick?
Initech
Jan 2013
#53
That $1 trillion dollar coin is interesting, but it's not something we should seriously
BlueCaliDem
Jan 2013
#44
Reminds me of that Simpsons episode with the trillion dollar bill that Burns stole...
Drunken Irishman
Jan 2013
#51
"If it's a crime to steal a trillion dollars and hand it over to Cuba then I'm guilty!"
Initech
Jan 2013
#52
It should have Dick Cheney's face on it, along with his quote, "Deficits don't matter." (nt)
scarletwoman
Jan 2013
#65