Thursday, January 10, 2013
Trillion Dollar Coin would be a disaster.
Sure its a cute maneuver around the Republicans and an arrogant President who considers himself to be the RULER of our country might just do it. Unfortunately, the rest of the world would look at this as an implicit default. The dollar would lose is status. Inflation would skyrocket.
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This is a way to default without losing face... it is ridiculous..
ReplyDeleteCould be Angie, but we might need these coins to make change once the FedInflation starts to kick in.
DeleteIt will be about gold and barter .....
DeleteSomething in Livestrongest's post here does not seem to make sense to me when compared to the real world. Despite the endless piles of money printed by Greenspan, and it is truly fucking incredible, we have not seen a situation where you need a wheelbarrow full of bank notes to buy a loaf of bread. I personally believe this hasn't happened because the majority of money printed has gone to a collectively small amount of hands. Till that money gets into the hands of people who will spend it, I don't know how bakeries and everyone will survive selling bread at 5k dollars if no one can afford it.
ReplyDeleteThe wealthy, right now, have an enormous stake in seeing that this country does not completely deteriorate. Some on the right, get this. Those further right, do not. What got us downgraded on the last debt ceiling fight was not the size of our debt, at least, the size of the debt was much less an issue compared to the perception that a small group of politicians were willing to let the country start defaulting on it's obligations in order to have their ideological demands met. Demands, by the way, that they only seem devoted to when they do not control the White House.
One way or the other, the debt ceiling will be raised. Either Boehnor will pass bills with help of Democrats, or Obama will circumvent him, actually, that should read Obama will circumvent the small group trying to circumvent Boehnor.
There is absolutely no way the US would default on any obligations. Our tax base easily creates the cash flow required to service any debt. This argument remains a red herring.
DeleteWhat would happen if the debt ceiling is not raised? That is answered quite simply. Budgets, if the senate ever gets around to passing one, would have to be adjusted to meet federal income.
What a concept!
1773-2009 RESET THE NEW NORMAL
"This argument remains a red herring."
DeleteExcept that it doesn't. On paper, what you are saying is true. But in the real world, SOMEONE needs to be at work to do the business of paying our bills. When the government shuts down, bills, in reality, do not get paid. Of course, the government always has the ABILITY to tax to pay our bills, in reality however, we have spent 30 plus years saying we may never raise taxes as a consequence to our profligate ways. So, the only consequence left is to say, "We won't let you pay our bills until you cut as much spending as we see fit to cut." Don't kid yourself or me William, if the people in congress who see the world the way you do thought it was perfectly legal to keep paying our bills when there was no money, they would not be taking the actions they are taking.
I never said " don't pay our bills." I did say that budgets must be passed and programs cut or paired back to meet that budget. Entitlement schedules must be adjusted in the out years. Surely a nation of 310,000,000 do not need an annual spend of 3,500,000,000,000. We are borrowing 50,000 per minute, 36,000,000 per day.
DeleteWhen if not now does this insanity end? I know you want to tax everyone more Max. That's the stock socialist answer to any shortfall, TAX AND SPEND!
Those days are over.
The trillion dollar coin is a gimmick, of course. It would not be circulated but would be used by the government to pay bills the governmnent owes to itself, which are 85% or more of the national debt.
ReplyDeleteLet's give China about 3 of em.
ReplyDeleteBut seriously, did you see that Illinois wants to register and regulate all gold purchases? Illinois is turning out to be the sounding board for Obama.
Can't you read the writing on the wall?
There is NO reason to register gold except the Government fears hyper inflation
Inflation is at historic lows and has been for 4 years now, yet, we read posts here every day prediction hyper inflation. The same posts appeared on the old MW site four years ago. Hyper inflation was predicted as being just around the corner, year after year. Mindless drivel is still mindless drivel.
DeleteIllinois and Florida among others, regulate the purchase of gold by mailorder and by direct dealers, and they have for several years. Neither regulate the purchase of gold by individuals, nor does any other state or territory of the U.S. Chalk up another lie for our friend.
ReplyDelete"To contract new debts is not the way to pay old ones.”
ReplyDeleteGeorge Washington