The Trillion Dollar Coin

[MindYourHead]

Hey! I just struck it rich by printing my own money! Wahoo! I like this process

That's the way I view this trillion dollar coin scheme.
Why not just have Hasbro print up one trillion dollars worth of Monopoly money?

I'm certainly no monetary expert. Lord knows I've unintentionally bounced a check or two in my lifetime because I didn't balance my accounts correctly, but in my mind even if it wasn't money that was in circulation, if you claim it has one trillion dollars worth of value, then it would devalue the dollar.
You can't have it both ways.

 

[tfg345i4u5lw]

Do you mean they are similar to a part of our gov., or "hey man, like, they are part of our gov, bro." ?

Then why even mint a coin? Just tell them to erase it.

I prefer to use the word "like". Other people have made comments about how it's not proper but I don't care. "Like" is a Cali word so I say it with pride.

Anyways, the Federal Reserve is like an add-on to the US government. The US people were told that the Fed was put in place to control the money supply and keep the US economy healthy. It seems to me that the US economy was fine without the Fed. I think the Fed was actually put in place to keep the US economy happily inflated while we blow mad cheddar trying to conquer oil kingdoms, but that is just my own speculation.

Why are they printing it then? I have no idea, I think they want to mint a coin for symbolic reasons. That way the American people have something tangible in their heads when they remember why the US debt suddenly got chopped.

 

[tfg345i4u5lw]

That's the way I view this trillion dollar coin scheme.
Why not just have Hasbro print up one trillion dollars worth of Monopoly money?

I'm certainly no monetary expert. Lord knows I've unintentionally bounced a check or two in my lifetime because I didn't balance my accounts correctly, but in my mind even if it wasn't money that was in circulation, if you claim it has one trillion dollars worth of value, then it would devalue the dollar.
You can't have it both ways.

No it wouldn't devalue the dollar because the money isn't floating freely in the economy. Inflation can only happen when banks lend into the floating economy and that won't happen. Even if inflation did happen, the Fed could easily hike up interest rates and stop the bleeding immediately.

Inflation can't happen. Gold is super overvalued right now, it's like 2006-housing on crack.

 

[Cornerstone]

This is just letting even the thickest people know that the financial system is a joke.

At least before it was veiled a bit. Money was still money and the idea that it was totally worthless was more abstract than in your face like this coin makes it.

 

[sprinkles]

Since it's worthless, give it all to me. I'll take care of it!

Anyway. The point of the coin presumably would be to cover the deficit, not the debt. The deficit being the 'bad number'.

The problem being that the government HAS to pay its debts. The debt were're talking about is peoples Social Security benefits, and securities investments. We own most of this debt ourselves. So they can't erase it, and they can't refuse to pay it.

This also does result in inflation because what goes around comes around - they'd use this coin to pay the deficit on what is owed, which means the same amount of cash will go through to payments for securities holders and retirees. So it does circulate, even if the coin itself does not.

 

[Motor Jax]

i just wonder, but who do we, as a people, owe all this 'debt' to?

geez, can't all the nations just drop all numbers down a few notches

everyone can just take off 3 zeros to the right and then... what? happens?

whats the worst that can happen?


people and their numbers lol

 

[sprinkles]

i just wonder, but who do we, as a people, owe all this 'debt' to?

geez, can't all the nations just drop all numbers down a few notches

everyone can just take off 3 zeros to the right and then... what? happens?

whats the worst that can happen?


people and their numbers lol

It's payments for things like Social Security (don't want to get rid of that) and securities (can't get rid of that because credit rating would be shot)

Basically they sell debt. You know government bonds right? The things you can get a share in, and it pays you interest periodically? That's how people own debt. The government sells a security for a bit of money now, and are obligated to pay the interest to the holder of that security.

China and Japan are big holders of securities because of trade agreements with them, we buy their stuff in exchange for selling debt to them. The biggest holder of our debt is ourselves, though.

 

[Rcs6r]

Apparently the White House has confirmed "No" to the trillion dollar coin. I'm sorry for the saddening news...

Awww... Next time we shouldn't announce our plans to steal things on the internet. A man can dream though.

 

[Motor Jax]

It's payments for things like Social Security (don't want to get rid of that) and securities (can't get rid of that because credit rating would be shot)

Basically they sell debt. You know government bonds right? The things you can get a share in, and it pays you interest periodically? That's how people own debt. The government sells a security for a bit of money now, and are obligated to pay the interest to the holder of that security.

China and Japan are big holders of securities because of trade agreements with them, we buy their stuff in exchange for selling debt to them. The biggest holder of our debt is ourselves, though.

its just a shame, is all

i don't like the fact that social security in on the table.. i'm sure it needs an overhaul but not to be cut in any way