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Atrios puts proof platinum coins in play

The commendably brief post in its entirety:

Mint The Coin

A nice $1 trillion platinum coin.

It gets better or at least more interesting:


Atrios links to a post by Yggles that IMNSHO tees up Grand Bargain™-brand cat food in the lame duck session, but from the MMT perspective, this is the interesting part:

On occasion I’ve raised the possibility to administration officials of financing the government with large-denomination platinum coins, always receiving laughter in response.

Ha ha ha. "I've raised" is really rather fine. If Yggles is stealing the idea, that means he thinks there's something in it. Which from a public policy perspective is very good. As the saying goes, you can accomplish a lot if you don't care who gets the credit.

NOTE Just to lay down a marker on who did the heavy lifting on this, here's a post from letsgetitdone, July 11, 2011. If I recall correctly, beowulf originated the concept, letsgetitdone picked it up, Corrente was ground zero for the posting, and Naked Capitalism and New Economic Perspectives gave a lot of help. Just saying. Matt.

Yet again the blog that everybody hates and nobody reads comes through in the clutch when nobody else even knows there is a clutch.

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Submitted by lambert on

... you'd prefer that the coin by made out of plywood?

Do some homework...

RanDomino's picture
Submitted by RanDomino on

Why not, if it's just a fetish object? Oh, I know, there are legal mumbo-jumbo reasons why it pushes the crisis off for another day, but at the end of the day it's just a scrap of relatively worthless junk that we tart up with a fancy picture and say, "This is valuable".

okanogen's picture
Submitted by okanogen on

It's a scrap of relatively worthless junk that we tart up with a fancy picture and we say "this ends the entire rationale for an austerity/extraction policy which impoverishes millions/billions in order to line fat cat pockets through a wealth transfer shell game".

It's more like that.

RanDomino's picture
Submitted by RanDomino on

"You no longer have to drive down wages, steal homes, give functional and government services to corporations, and engage in mass fraud in order to make yourselves exponentially richer, because we have a magic talisman"?

Submitted by lambert on

MMT holds that money is the creation of the state, and that money (therefore) is to be used for public purpose. You're not dumb, you know this, but you can't bear that the state should actually have a function.

Hence, the trolling, since you have no analytical answer. Which is why you sound like a chamber of commerce Colonel Blimp or a Randroid.

Like I said, I put up with the violence advocacy, but this is a time-sucking waste of bits. Take a break, why don't you?

letsgetitdone's picture
Submitted by letsgetitdone on

Not because we have a magic talisman; because we create and then deposit a legal tender coin in the Mint's Public Enterprise Fund (PEF) which according to law the Fed must credit at its face value.

I agree with you that creating $1T coin won't change very much. That's why I'm for minting a $60 T to fill the public purse. See here, here, here, here, and here. If the President mints that coin he can use the seigniorage profits to pay off the national debt as it comes due, without either having to tax any more or borrow any more to retire the debt, The debt ceiling will be a non-issue also. There will be no excuse for Congress not to spend on programs the American people need.

RanDomino's picture
Submitted by RanDomino on

I'm talking about the physical object. There really has to be a little metal thing that has the phrase "$60 Trillion" written on it before these things can happen? Really?

letsgetitdone's picture
Submitted by letsgetitdone on

Yes, there has to be the little metal thing. That's because Congress delegated its money power to an unconstitutional Fed while largely prohibiting it from fiscal operations, and severely limited the Treasury's right to issue currency. But in 1996, it balanced this foolishness with more foolishness allowing minting of platinum proof or bullion coins with arbitrary face values. I think they did this to benefit platinum suppliers and collectors, not realizing that they had created a tool Treasury could use to get around the rules against the Fed just supplying money to the Treasury when it needed it. So, we need that shiny metal object to get the money to deficit spend money already appropriated by Congress and to pay down or pay off the national debt without raising taxes.

The national debt itself doesn't create solvency problems for a currency issuer like us; but it does create political problems and needs to be eliminated for that reason.

Submitted by lambert on

Joe doesn't have to deal with trolls day in and day out. So my fuse is a little bit shorter than his.

Submitted by lambert on

I can see you've studied that matter thoroughly.

Of course, your argument here gives the lie to all that bullshit about contextualization on subject matter you really care about, like throwing rocks through Starbucks windows -- since it's exactly the context that gives it "worth."

Funny!

RanDomino's picture
Submitted by RanDomino on

Actually one of the reasons for doing that is to show that the 'property' actually has NO worth (no moral worth, that is, beyond its value in keeping weather out).

So, do it, right now. Explain why a tiny scrap of metal can be worth a trillion dollars, and that's going to fix all these problems.

Come on. You KNOW it's ridiculous. Yeah, maybe it works for various arcane reasons that make sense within this insane system; but, really? Mint a $1 Trillion coin? Money at least makes sense when it's in denominations that are useful for exchange, but what the hell is this?

Submitted by lambert on

The post is full of linky goodness. I've no interest in investing time unkinking your knee.

I put up with your violence advocacy as a learning experience, but there's no value add here.