Just to note that as the talk of the mythical $1 trillion coin heats up, we had it covered back last year.
John Carney at CNBC writes:
The trillion platinum coin idea came roaring back into the headlines today when theHuffington Post splashed it across its homepage.
An obscure provision of the federal code seems to give the Treasury Secretary authority to mint platinum coins worth whatever the Secretary declares them to be. A $1 trillion coin could be deposited with the Federal Reserve, which would allow the government to continue spending money even if it were barred from issuing more debt.
But can the government really pay its bills with a trillion dollar coin? Is it legal for the Treasury to create $1 trillion dollars out of nowhere?
The idea isn’t a new one—it first came upthe last time we neared the debt ceiling, in the summer of 2011—but it isincreasingly gaining mainstream credibility. Paul Krugman approvingly mentioned it earlier this week. Congressman Jerry Nadler, the Democrat from New York, endorsed the concept in an interview with Capital NY. Business Insider explains why minting the coin wouldn’t be massively inflationary or destroy the value of the dollar. Bloomberg’s Josh Barro discussed an interesting twist on the idea yesterday. The hastag #mintthecoin has become ubiquitous on Twitter.
This , more than anything, indicates the belief that liberals have that government can do anything in the world that it wants without repercussion. We see it all the time – there is no debt problem because we say there in no debt problem, there is no Islamist jihad problem because we say that there is not, there is no spending problem because we say there is no spending problem. Their reality is based on nothing but a fairy tale belief that things are what the are because that is what they want them to be.
Look at a $1 bill.
Since we came off the gold standard, the fiat money we use today is backed only by the “full faith and credit” of the US government. It is a worthless peice of paper only given value because the government says it worth $1 and we accept that. The minute that the population stops believing that it is worth a dollar, the monetary system will collapse – Hell, most of our “money” isn’t physical money at all, it is just a promise to pay.
This kind of chicanery with the $1 trillion coin might just be ridiculous enough to finally collapse the system if these morons want to play that game. As one commenter said, if we can just print money to pay our bills, why do we even need taxes?
These fools are simply children playing make-believe. One day, people will wake up and walk away from them and they will fictionally receive the scorn that they deserve. People like Krugman are only smart because people around him keep telling him that he is.