On Jul 27, 2011, at 6:25 PM, Anthony Kennerson wrote:
> This is an idea that has been getting some steam among some progs/
> lefties.
>
> Basically, the idea is that the President would order the Fed to
> mint a
> platinum coin, load it up with an extraordinary value -- as in, the
> TRILLIONS of dollars -- and them use it to swap out for Treasury
> notes of
> the same value, which would be used to pay off the debt obligations.
>
Your analysis is spot-on. Only the plutocrats benefit from the
domestic part of the national debt, so T-bonds should never be issued
except to finance a trade deficit. So Firestones $30 trillion coin
would be great for the long run but for now I'd settle for $3 trillion.
Two weeks ago I posted this:
""if there actually was a default, I don't think Wall Street would be
around to do much of anything."
>>
>> Is this credible?
>
> No. Default ain't credible. The stupid "debt limit" law can't
> override the explicit 14th Amendment requirement that the government
> honor its debts. Nor does the president have to borrow unilaterally
> to do so. By using the constitutional authority of the Treasury to
> "coin money" he need only mint a coin of sufficiently large
> denomination, pay it to the Fed in return for US bonds it presently
> holds, and those bonds are no longer outstanding debt counted
> against the "debt ceiling." Americans, exceptionally stupid as they
> are, are the only country in the world with a "debt ceiling" law.
> Stupider than that, their law counts as debt accounting entries
> crediting one part of the government and debiting another!
>
> Default ain't credible. Yet everyone seems to treat it as possible.
> Only in America.
Shane Mage
"scientific discovery is basically recognition of obvious realities
that self-interest or ideology have kept everybody from paying
attention to"
> The advantage, proponents say, is that it would get around
> constitutional
> questions about invoking the 14th Amendment, and that it would
> protect both
> the President's and Congress's traditional seperation of powers. Not
> to
> mention, it would render both the Tea Partiers/GOP AND the deficit
> hawk
> Democrats obsolete.
>
> Here's an article from Joe Firestone over at the Campaign For
> America's
> Future, that explains the broad concept:
>
> Beyond The Debt Ceiling: The $30 Trillion Plan For Ending Borrowing
> And The
> National Debt (Corrente
> Blog)<http://www.correntewire.com/beyond_the_debt_ceiling_the_30_trillion_plan_for_ending_borrowing_and_the_national_debt
> >
>
> And, a further explanation from moi over at my own blog:
> Proof Platinum Coin Seignoirage: The Ultimate Left Cure For
> Debtpocalypse?
> (Inventing The American
> Left)<http://www.redgarterclub.com/AJK-Multisite/inventingtheamericanleft/2011/07/27/proof-platinum-coin-seigniorage-left-cure-for-debtpocalypse/
> >
>
> All rightit, LBO'ers...what sayest thou on that??
>
>
> Anthony
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