tag:blogger.com,1999:blog-17232051.post3676511712702518395..comments2024-03-28T03:16:14.104-04:00Comments on Noahpinion: How I Learned to Stop Worrying and Love Trillion Dollar Platinum CoinsNoah Smithhttp://www.blogger.com/profile/09093917601641588575noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-17232051.post-32597110152518139712013-10-07T12:40:21.822-04:002013-10-07T12:40:21.822-04:00Minting a big coin (zero maturity money) and spend...Minting a big coin (zero maturity money) and spending it to fund government operations ought not be significantly more inflationary than issuing term debt (an asset swap of finite maturity money for zero maturity money) to fund the same operations. The additional aggregate demand produced by resuming the currently suspended government operations shouldn't induce inflation in the current well-below-productive-capacity economy.<br /><br />But it's certainly an odd and unfamiliar procedure.<br /><br />Perhaps better would be for Treasury to start issuing non-maturing debt, which (per Beowulf, who called the Platinum Coin feature of the US Code to public attention) does not count against the limit. The Fed could monetize this at any price it wished, rewarding its friends in the finance industry, and never fear realizing a loss.Samuel Connernoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-60080806738419966912013-10-05T21:28:59.850-04:002013-10-05T21:28:59.850-04:00Noah--I don't think leaking to the press/marke...Noah--I don't think leaking to the press/markets necessary to gauge reaction. If the Federal Reserve accepts the coin, the market will accept the coin. Presumably Obama knows how the Fed would react--even though the Fed said in January publicly that they wouldn't accept the coin, it's hard to believe that after 9 months of this nonsense it would rebuke Obama and reject the coin and allow default.<br /><br />For updates on what people are saying about the platinum coin, facebook.com/mintthiscoin and @mintthiscoinmintthiscoinhttp://facebook.com/mintthiscoinnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-12780996178852229102013-10-04T22:31:41.724-04:002013-10-04T22:31:41.724-04:00President Obama with the stroke of his pen (an Exe...President Obama with the stroke of his pen (an Executive Order) has the opportunity to insure the financial success of the U.S. And the World's economies now and for hundreds of years into the future by implementing "The 990,000 Trillion Dollar Coin Solution"--SEE Comments Section of "The Economist"...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-41594295772019877712013-10-04T22:27:44.185-04:002013-10-04T22:27:44.185-04:00President Obama with the stroke of hid pen (an Exe...President Obama with the stroke of hid pen (an Executive Order) has the opportunity to insure the financial success of the U.S. And the World's economies now and for hundreds of years into the future by implementing "The 990,000 Trillion Dollar Coin Solution"--SEE Comments Section of "The Economist"...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-69902249231867137822013-10-04T20:24:11.889-04:002013-10-04T20:24:11.889-04:00If I'm a market participant, and the coin come...If I'm a market participant, and the coin comes around, I'd gladly bid down the price of treasuries and expected inflation.<br /><br />Not out of patriotism ... but rather because there's no way the SCOTUS would issue a ruling that forced a default. Under no circumstances would bondholders not get paid, and if some did believe that, I'd be happy to hedge my way into a profit by betting against them.<br /><br />I'm not a billionaire market maker ... but I imagine they see things the same way. The debt ceiling can create some strife and uncertainty, but the coin tamps it down to a manageable level.SThttps://www.blogger.com/profile/12250414866767420576noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-85276012438725385422013-10-04T15:26:46.069-04:002013-10-04T15:26:46.069-04:00While they shouldn't make it too big, it would...While they shouldn't make it <em>too</em> big, it would be pretty awesome if they made it larger than usual. I'm thinking a foot-wide coin, with a picture of Alexander Hamilton giving people a thumbs up and winking. Bretthttps://www.blogger.com/profile/05741738070067590221noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-79401794108419013872013-10-04T15:20:23.886-04:002013-10-04T15:20:23.886-04:00The platinum coin must be "bullion" or &...The platinum coin must be "bullion" or "proof", so Fox News may not be wrong when it assumes that would require vast amounts of platinum:<br />http://justoneminute.typepad.com/main/2013/01/and-yet-laurence-tribe-is-wrong-on-the-trillion-dollar-coin.htmlWonks Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-54795110733138533242013-10-04T14:59:39.511-04:002013-10-04T14:59:39.511-04:00My father spoke to me:: "Do the right thing a...My father spoke to me:: "Do the right thing at all times - even when you feels no one is observing." So I expect it of myself and I seek it in others. Victorhttp://www.fbs.com/profilenoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-11162980133158427352013-10-04T14:10:00.382-04:002013-10-04T14:10:00.382-04:00Supposing Obama thought using the coin or invoking...Supposing Obama thought using the coin or invoking the 14th Amendent were feasible, the White House doesn't want to admit that because it would ease the pressure on the Republicans. <br /><br />And this tough strategy might have worked seeing as the papers are reporting that Boehner told Republican moderates he wouldn't default on the debt and would violate the Hastert rule again if necessary.<br /><br />But say somehow Boehner or another speaker does force a default, I think Obama should do the coin or invoke the 14th amendment or something instead of defaulting. <br /><br />I believe the market isn't freaked out because they believe that the situation will be resolved by either Boehner or Obama and they'll get paid.<br /><br />The Platinum Coin does have some interesting implications if the thinking is followed through to its logical conclusion. That's why the Fed says it wouldn't do it. <br /><br />The government's defict doesn't go up, but the Fed's balance sheet expands. At the Zero Lower Bound inflation won't increase. Eventually it will though if they keep at it.Peterhttps://www.blogger.com/profile/08272747870634233567noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-54979484744935091482013-10-04T11:04:38.238-04:002013-10-04T11:04:38.238-04:00look at this: gobanknoteless.wordpress.comlook at this: gobanknoteless.wordpress.comAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-70402530588608699102013-10-04T08:34:12.652-04:002013-10-04T08:34:12.652-04:00Or to use the actual numbers, Congress has demande...Or to use the actual numbers, Congress has demanded that Obama make this true:<br />$2.7 trillion - $3.8 trillion = $0.<br /><br />Those demands are at least as absurd as minting a $1.1 trillion coin - they make as much sense as repealing the law of gravity.Davenoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-73232756423951609632013-10-04T07:58:04.663-04:002013-10-04T07:58:04.663-04:00As I see it, the Presidents problem is that Congre...As I see it, the Presidents problem is that Congress mandates limits on three things:<br /><br />spending - revenues = deficit (or borrowing)<br /><br />These are apparently Constitutional powers. When Congress limits the deficit and raises spending - revenues, Congress has created a problem.<br /><br />The president has the Constitutional power to control a fourth thing, minting. Thus, he could always balance the equation:<br /><br />spending - revenues = deficit - minting<br /><br />1 trillion dollar coins in whatever number can resolve the problem without Constitutional problems. Whether that is an intelligent thing to do is another question.Mike Hubenhttps://www.blogger.com/profile/01371469964446567690noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-74463219472308992722013-10-04T07:19:08.865-04:002013-10-04T07:19:08.865-04:00Treasury has already stated they will take no part...Treasury has already stated they will take no part in the "coin" tactic. And more importantly, the practice of hostage taking every few months must be made as politically painful as possible or we will never see the end of it.<br />cahuenganoreply@blogger.com