The Trillion Dollar Coin - how it could save America’s economy!
80 replies, posted
[QUOTE=TheFishyG;39098362]uh
if they only make one and it's owned by the gubmits to give to whoever to pay off debt, how does that one coin increase inflation
I'm not an expert in economics, I apologize, but can somebody explain to me how that would go about happening?[/QUOTE]
First of all, the coin is worth 1 trillion because the government says it is, so you would be able to exchange that coin for 1 trillion dollars in regular cash, or deposit it in a bank (if you somehow received that coin in payment, and could find a bank to take it). So it basically increases the supply of US dollars in the world by 1 trillion. It's estimated the current amount in circulation is somewhere around $10 trillion, so that is about a 10% increase in the money supply.
Now with the increased amount of US dollars in the world, individual dollars are worth less (basic supply and demand).
[QUOTE=Paul McCartney;39095696]Why would you think the government would even do this? This is an opinion piece.[/QUOTE]
Well technically the Federal Reserve is a considered a private bank.
[QUOTE=Obnobs;39097318][video=youtube;YD3RNouwvOU]http://www.youtube.com/watch?v=YD3RNouwvOU[/video][/QUOTE]
Oh man, I remember when Anti-fag were the shit back in the eighth grade.
[QUOTE=Within;39098143]Well, I don't know, it seems like a pretty legit issue to me.[/QUOTE]
there's really no legitimate reason to not raise the debt ceiling. It will always do more harm than good and would probably trigger a constitutional crisis.
I imagine that in the future, the US will be in even greater debt from paying off all the platinum they've had to use to make these $1 trillion coins.
Isn't this basically like holding your hands to your ears and screaming, "lalalalala we haven't reached the debt ceiling! Look at this shiny coin!"?
Quantitative easing isn't the answer, but hell, I guess we'll make it the answer.
why didn't thèy do this idèa long ago
comè on amèrica think diffèrèntly likè applè trièd to
[QUOTE=343N;39105081]why didn't thèy do this idèa long ago
comè on amèrica think diffèrèntly likè applè trièd to[/QUOTE]
Is this some sort of joke I missed?
[QUOTE=Stopper;39105137]Is this some sort of joke I missed?[/QUOTE]
yès
[QUOTE=CabooseRvB;39096416]There should be a position called the 'Worth-Wizard.'
He could point out to a pen and declare it to be 10 trillion dollars and so the markets would follow suit.
There would be an order of Worth-Wizards that could convene once a month to decide the worth of certain products in order to curb this growing debt.[/QUOTE]
It'd be all fun and games until one of them points at another and declares him a Worth-Less, a being who has no say in anything.
[QUOTE=Stopper;39105137]Is this some sort of joke I missed?[/QUOTE]
It makes you type in French.
Änd this is höw ÿöü tÿpë in Swëdish
[QUOTE=Im Crimson;39105477]It makes you type in French.
Änd this is höw ÿöü tÿpë in Swëdish[/quote]
wròng, thìš ìš hòw yòù typè ìn frènch.
yòù àrè ŠÒ wròng
Do they even have enough platinum to be worth a trillion dollars? And where are they gonna get the money to afford a trillion dollars worth of platinum?
[QUOTE=cqbcat;39108091]Do they even have enough platinum to be worth a trillion dollars? And where are they gonna get the money to afford a trillion dollars worth of platinum?[/QUOTE]
No, I think they are just going to make it a fairly large coin of platinum and arbitrarily call it worth a trillion dollars.
[QUOTE=FreakyMe;39095638]Imagine accidentally putting it in a vending machine..[/QUOTE]
Obviously you'd get all the soda in the universe.
[QUOTE=Zenreon117;39108200]No, I think they are just going to make it a fairly large coin of platinum and arbitrarily call it worth a trillion dollars.[/QUOTE]
I suspect this is what will happen. Gone are the days of the gold standard when a coin's worth was in the inherent metal value.
[QUOTE=cqbcat;39108091]Do they even have enough platinum to be worth a trillion dollars? And where are they gonna get the money to afford a trillion dollars worth of platinum?[/QUOTE]
There are two values to any (non gold-standard or similar) money: Face value and material value. The face value is decided by the government and is essentially arbitrary. Material value is the worth of money if it was taken as raw materials (melting down coins and such, or even the value to a collector).
The trillion dollar coin's material value would be FAR less than the face value (most money has a higher face value than material value anyway, except for collectible ones).
[QUOTE=Gnomical;39095630]"fuck it was stolen"[/QUOTE]
Obviously by Nic Cage. Here comes National Treasure 3.
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