Friday, January 11, 2013

I Propose a $1-Billion-Coin, Get-Out-Of Debt Scheme

The $1-trillion-coin concept will never see the light of day. The Federal Reserve and the big banks would never stand for the "market stability" created by such a "cut and dry" solution. I think the concept will be whittled down to a $1-billion-coin scheme. Here's why:

The Fed has backed itself into a corner with interest rates, therefor it can't perform as much of its weekly magic of inventing and destroying currency (fake money). In an unholy alliance between the "private" reserve and government, the Fed will transfer some of it's magical powers to the Treasury. The Treasury can mint $1 billion coins weekly, then on every Friday it can announce how many trinkets it is releasing into "circulation" (to the Fed).

A $1-billion-coin scheme would better allow the government and the Fed to "respond to market realities." HA. HA.

Credit: The New York Times
But back to reality!?! Nobel Laureate [for Economics-LOL] Paul Krugman ACTUALLY THINKS the $1-trillion-coin scheme could replace the need for raising the debt ceiling. He really wrote so in "Rage Against the Coin" in his weekly column, The Conscious of a Liberal [What?].

I still think the $1 billion coins have a better chance of seeing the light of d̶a̶y̶ the Federal Reserve vault. They would just be more conducive to money manipulation, because of their  l̶i̶q̶u̶i̶d̶i̶t̶y̶ divisibility.

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