Has the US government lost control over its budget?

Trillion dollar coins deposited to the Fed will reduce our debt and place us below the current debt limit while simultaneously averting another debt ceiling debate.

This is actually what the White House is considering. Heaven help us all.


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reply to post by spinalremain


They wouldn't have to deposit anything. The government will just say they did. How do you take 1,000$ or whatever the value of the platinum is and say its worth a trillion dollars just because we created the coin. That is making something from nothing on a disgusting level.

Reply to post by marbles87

It's even worse than the concept of fiat money. You're actually using a comodity like platinum and raising its value to an absurd level. I can understand wanting to avoid the debt ceiling debate, as congress has already voted as to how to spend the funds, but this idea is simply too ridiculous to seriously consider.

Yet I suppose if the Obama administration propses that Grover Norquist's head be put on the coin, that all will be well and dandy.


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reply to post by spinalremain


How do other countries sit by and let us destroy their economy too. If this goes through other countries will freak because they didn't have the opportunity to mint a trillion dollar coin to fix their economy from over spending. Greece anyone? What will this do to platinum prices? If a coin is minted by the goverment it is part of the economy regardless if it is used by the public or not. The moment the coin hits the economy either 1 trillion dollars was added to circulation or they are lying. You can not make a coin to pay debt or be used as collateral and say its not money. Which the government is saying. What if we can't pay the balance of these coins back? Has bad news all over it.

reply to post by spinalremain


Are they really talking about something this absurd? This is like a huge slap in the face to Greece and Spain. There's no way something like this could hold up.

We haven't had a budget in 4 years.

What control can be had if the outline is not known?

Mark Steyn sums it up amazingly well here:

The Congressional Budget Office estimates that the latest triumphant deal includes $2 billion of cuts for fiscal year 2013. Wow! That's what the Government of the United States borrows every 10 hours and 38 minutes. Spending two months negotiating 10 hours of savings is like driving to a supermarket three states away to save a nickel on your grocery bill.

This latest painstakingly negotiated bipartisan deal to restore fiscal responsibility actually includes a third of a trillion dollars in new spending. A third of a trillion! $330,000,000,000!

it's paid for by all the new revenue – an estimated $620 billion over a decade, or about $62 billion a year, which is what the Government of the United States borrows every 13 days

On Monday, 300 million Americans did not know what their tax rates would be on Tuesday. That's ridiculous. Then, Senate Minority Leader Mitch McConnell spent the night alone in a room with Joe Biden (which admittedly few of us would have the stomach for). And when they emerged they informed those 300 million Americans what their tax rates now were. That's unseemly. Then, in the small hours of the morning, the legislature rubber-stamped it. That's repulsive. There's a term for societies where power-brokers stitch up the people's business in back rooms and their pseudo-parliaments sign off on it at 3 a.m., and it isn't a "republic of limited government by citizen-representatives."

link

We are so screwed, and the political class could care less. We have to take a stand here. It really is up to us.

Originally posted by Krazysh0t
reply to post by spinalremain

 

Are they really talking about something this absurd? This is like a huge slap in the face to Greece and Spain. There's no way something like this could hold up.

They not only can talk about something this absurd, they will do it and not care if it doesn't hold up. "The last official act of any government is to loot the treasury”

On the upside, its the LAST official act. The next act will be up to those whose treasuries have been looted. Unofficially, of course.

Reply to post by Krazysh0t

I thought it was a joke myself, but yes indeed they are considering this. It's one way that the White House can avoid a debt ceiling debate.

I swear you cannot make this stuff up.

Perhaps we should mint a few of these coins and hand them to China. Maybe I can pay bills with crayon scribed post it notes '100 dollars'??


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reply to post by spinalremain


Yup we just make 2x 1 trillion dollar IOUs, the coins have no real value outside of their materials and people expect us to pay it back? We can't even pay the debt we are currently sitting on.

To ask if the government has lost control is to imply it had control to begin with. The reserve runs this show and from the way things have played out its game set match.

Run a bank
Let a goverment borrow money
Run or let the country run head first into debt and collect trillions in interest
Foreclose on country if you will
Take money earned and loan money back to newly created country from ashes

Or or.... Own an entire country.

"United States of America. LLC" anyone?

Yup sounds right.

Originally posted by spinalremain
Reply to post by Krazysh0t

 

I thought it was a joke myself, but yes indeed they are considering this. It's one way that the White House can avoid a debt ceiling debate.

I think this would terminate the OPEC oil for $ deal, so they wont risk to behave this way.

Its just a bluff to make some tea party fans sweat a little more.