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History of the Proof Platinum Coin Seigniorage Concept, 2010-2013

Please leave new "sightings" of Proof Platinum Coin Seigniorage items -- whether old or new -- in comments below, or contact the blog!

And see here for an interpretation of the data, at least from the perspective of the blogosphere.

 

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Displaying 301 - 450 of 552 entries
For example, "Paul Krugman" or "Economist"
E.g., 2014-11-24
"provenance"
Author: Publication Datesort descending Text
Matthew Yglesias: Slate 01/10/13

"In terms of the money supply there is, similarly, no problem here. Let's say there's a $1 trillion gap between what congress has said we should spend and what congress says we should tax. One option is to borrow the $1 trillion. If the Fed thinks that's put too many bonds into circulation and not enough money, it can print money and use it to buy bonds. Another option is to deposit a $1 trillion coin at the Fed to cover the gap. If the Fed thinks that's put too much money into circulation and not enough bonds, it can sell bonds and buy money.
" (original).

Rick Moran: American Thinker 01/10/13

"Imagine - stamping "$1 trillion" on a coin and calling it money? Have they completely lost their minds? And what about Congress? If the executive branch can mint its own money why can't it authorize its expenditure as well?" (original).

Justin Sink: The Hill 01/10/13

"According to the survey by YouGov and The Huffington Post, 38 percent of voters disapprove of such a proposal. Only 19 percent say they believe the president should authorize the minting of such a coin, while 43 percent say they are not sure about the plan." (original).

David Weigel: Slate 01/10/13

"[John Piecuch, director of communications at Standard & Poor:] 'S&P has five pillars that analysts look at in terms of sovereign ratings. One of them is the fiscal score, which includes the debt to GDP trajectory; one is the political score. In terms of the political aspect, the current acrimony over these issues is already incorporated into the rating, at the AA+ level.'" (original).

Dorothy Kosich: MineWeb 01/10/13

"PPCS involves minting proof platinum coins with arbitrarily high face values, depositing them at the Fed, receiving electronic credits equal to the face value of the coins from the Fed, and then having Treasury sweep the profits in the Treasury General Account, where they could be used to redeem debt held by the Fed, debt held by Trust Funds and government agencies, and debt held by the non-government sector including domestic investors and foreign government and investment" (original).

James Taranto: Online WSJ 01/10/13

"It turns out that, contrary to what we wrote yesterday, the idea of solving the national debt problem by issuing a currency instrument with a huge face value predates the 1998 episode of “The Simpsons” in which that was the plot line. In 1992 Bo Gritz, the Populist Party candidate for president and someone the leftist Southern Poverty Law Center sees fit to monitor, proposed it in a campaign speech." (original).

Matthew Yglesias: Slate 01/10/13

"[It's] false to say that seigniorage is outside the purpose of the 1997 platinum amendments. In fact, seigniorage is the essence of why it was written. What's different is the scale" (original).

John Carney: CNBC 01/10/13

"Imagine for a moment that Tim Geithner ordered the Bureau of Printing and Engraving to forge a $1 trillion coin. How big would that coin have to be? (original).

Amy Davidson: The New Yorker 01/10/13

"In the past, Obama has been reluctant to think of simply invoking the Fourteenth and ignoring the debt ceiling. Maybe, with visions of a platinum Geithner, he’ll change his mind" (original).

Brett LoGiurato: Business Insider 01/10/13

"'It's taking a statute ... that has one very small, narrow purpose for which everybody agrees — minting commemorate coins — and reading it in a hyper-literal way,' [Edward Kleinbard, the former Chief of Staff of the U.S. Congress’s Joint Committee on Taxation] said this morning on a conference call." (original).

mynorthwest.com 01/10/13

"So the U.S. Mint would strike a trillion dollar platinum coin, put it in a armored car, deliver it to the Fed, which adds it to the Treasury's bank account, and just like that, this year's deficit is erased, and Congress doesn't have to do a thing. You know how fracking is discovering all that hidden oil? This is monetary fracking" (original).

Scott McCartney: Online WSJ 01/10/13

"Some stories just keep circulating: The genius behind the trillion-dollar-coin Treasury rescue plan says the inspiration for the idea came from my 2009 story on frequent fliers buying coins from the U.S. Mint to collect free frequent-flier miles" (original).

justinwolfers: Twitter 01/10/13

[Google trend for "platinum coin" spiking] (original).

Joe Weisenthal: Business Insider 01/10/13

[Greg Walden circulates a letter:] "This bill would not prevent the Treasury or Mint from producing commemorative platinum coins for circulation or sale, but it would take the coin scheme off the table by disallowing the Treasury from printing mint platinum coins as a way to pay down the debt or avert a debt ceiling fight" (original).

Keith Hansen: Brainerd Dispatch 01/10/13

"The latest outrage to come out of our nation’s capitol is one of the most outrageous, hair-brained [sic] schemes one has heard from the city of outrageous behavior. One must first ask the question how this administration plans to handle the nation’s $16.45 trillion debt? Why of course they are floating a trial balloon that would ask the Treasury to mint a $1 trillion platinum coin. Sixteen of them would nearly pay off our nation’s debt. Seriously?" (original).

Joe Firestone: NEP/Corrente 01/10/13

"Literal TDC proposals would solve the debt-ceiling, but they won’t solve the larger problem of defeating the austerity politics that is so close to getting the cuts to social safety net and important discretionary government programs that austerians have long sought. PCS game-changer proposals are the ones calling for, or analyzing the impact of, PCS options aimed at paying off the national debt and covering anticipated federal deficit spending for some years" (original).

Paul Krugman: Conscience of a Liberal 01/10/13

"[I]t’s the president’s duty to do whatever it takes, no matter how offbeat or silly it may sound, to defuse this hostage situation. Mint that coin!" (original).

Alex Halperin: Salon 01/10/13

"[A] $1 trillion platinum coin doesn’t need to be made from $1 trillion worth of platinum" (original).

By Dan Kois and Andrew Morgan: Slate 01/10/13

"We’re only making one of these coins, so let’s make it count! That’s why we’re opening the floor to you, Slate readers: Can you design a better platinum $1 trillion coin?" (original).

David Weigel: Slate 01/10/13

"The evolving case for the platinum coin is the only truly surprising news of 2013 so far. It's clear that Republicans have no idea how to respond to it -- look to the NRCC's hilariously wrong attack on the concept, which assumed that a $1 trillion coin would need to be minted with $1 trillion worth of platinum. (To understand why this is wrong, take a $1 bill out of your pocket, then take a $20, then ask why the second bill isn't 20 times larger)" (original).

Red Kingman: WHTC 01/10/13

"First, it may be legal to mint a platinum bullion coin with a $1 trillion face value, but it's not legal to pass it off as actually worth $1 trillion if there isn't $1 trillion of platinum in it. That's because it's a bullion coin and not a legal circulating coin. The face value of a bullion coin has no relationship with the metal content because the value is in the metal, whose price fluctuates daily. Second, for a coin to be worth its face value, it has to be made as a circulating coin. And thirdly, the current law does allow the Mint to make a platinum proof coin and does not specify whether this applies to a bullion coin or a circulating coin. A proof coin refers to a mirror-like finish and is made for coin collectors. However, a proof coin must be accepted at face value." (original).

ipredict 01/10/13

"This contract will close at $1 if the United States Treasury mints one or more platinum coins with a face value of at least $1,000,000,000 (one billion) US dollars by 12:01 am on 1 April 2013. Otherwise it closes at $0" (original).

Lance Roberts: Pragmatic Capitalism 01/10/13

"The idea of the “Trillion Dollar Coin,” or utilizing the 14th Amendment, are just simply bad ideas that should be dismissed immediately. I say they are “bad ideas” because the last thing that we need, as a country, is an Administration that is trying to find ways to circumvent the law" (original).

Sarah Mitroff: Wired 01/10/13

"A massive 1,556-gram coin is unthinkable for Diehl, who guesses that the trillion-dollar coin would be no larger than an ounce. Remember, the mint basically has to subtract the cost of the metal and manufacturing from the face value of the coin and then it keeps the remainder, so smaller is better. But there are practical reasons for a small coin of massive value, too. 'Above one ounce is unlikely because its more difficult to strike platinum into a larger size,' he says." (original).

Danny Vinik: Across All Sports 01/10/13

I know the President has said he won’t negotiate over the debt ceiling, but he doesn’t have a choice here. The negotiations aren’t going to be fun. Republicans have the leverage and are going to use it. Some are crazy enough that they actually want us to default. However, Republican leadership understands how horrible that would be. They know they can’t let it happen. They also know that their image is a disaster and the public will largely blame them if we default. They have a number of incentives to negotiate and work towards a deal. (original).

Michaeleen Doucleff: KOSU 01/10/13

"[I]f the president decided he wanted Treasury to produce a $1 trillion platinum coin, he just has to say so. And we all just have to agree that’s what it’s worth. Whether it really is or isn’t" (original).

Ezra Klein: Washington Post 01/10/13

"But there’s nothing benign about the platinum coin. It is a breakdown in the American system of governance, a symbol that we have become a banana republic. And perhaps we have. But the platinum coin is not the first cousin of cleanly raising the debt ceiling. It is the first cousin of defaulting on our debts. As with true default, it proves to the financial markets that we can no longer be trusted to manage our economic affairs predictably and rationally" (original).

David Graham: The Atlantic 01/10/13

"So really, it's pretty unfair to suggest that failure to raise the debt ceiling would make the United States a banana republic. Most banana republics have their affairs in much better order than that" (original).

Eric Morath: Online WSJ 01/10/13

"'Why stop at a single trillion-dollar coin?' Edmund Moy, who led the Mint from 2006 until 2011, asked in jest. 'Why not make four and cover all federal spending for a year? Why not make 17 and pay off national debt?'" (original).

Keith Weiner: Seeking Alpha 01/10/13

"There are numerous arbitrages that depend on the Treasury bond. Each of them is impacted by a change in the rate of interest. Analysis of any one of them is non-trivial, as should be clear from the survey above. ... While we cannot predict everything that would happen, we can clearly see that printing a trillion dollars would have a number of very destructive effects" (original).

Tim Price: Next New Deal 01/10/13

"If the U.S. had a functioning government and a healthy political debate, we wouldn’t be talking about the debt ceiling or the coin, but it doesn’t, so we are. Pretending that everything’s just fine on Capitol Hill won’t bring Mr. Smith back to Washington, but acknowledging and heightening the absurdity could hasten the exit of the current gang of malcontents and allow more reasonable and responsible leaders to take their place. So if you take policy seriously, it’s time to treat politics as farce" (original).

Matthew O'Brien: The Atlantic 01/10/13

"If Congress doesn't lift the debt ceiling in time, Treasury should prioritize payments while Obama and Republicans negotiate an increase. But if a day ever comes when incoming revenues won't meet interest payments, Treasury should mint a platinum coin to cover the difference. As Steve Waldman argued, use a billion dollar instead of a trillion dollar coin -- and only as a last resort to avoid irrevocable damage. The full faith and credit is worth a platinum coin." (original).

Eric Posner: Slate 01/10/13

"President Obama shouldn’t take even a low risk of impeachment for the wacky act of minting a $1 trillion coin. Volatile politics and ambiguous law make for a dangerous combination" (original).

Mark Gongloff: HuffPo 01/10/13

"[W]e are starting to come up with a whole bunch of alternatives for President Obama to consider Yglesias's IOUs, Ip's smaller coins, Kleinbard's scrip], if he needs a way to avoid the debt ceiling" (original).

Phoenix Woman: Mercury Rising 01/10/13

"There are still some rabid dead-enders out there who are willing to discount what the former head of the Mint and the greatest living Constitutional scholar have to say on this issue, but their voices are getting ever more shrieky as they find their numbers shrinking" (original).

Matthew Yglesias: Slate 01/10/13

"Here's Fox News confusing the idea of a coin-shaped pile of platinum worth $1 trillion and a $1 trillion coin that happens to be made out of platinum and can be of any size" (original).

Mark Memmott: NPR 01/10/13

"Crazy Or Canny? Talk Grows About $1 Trillion Platinum Coin" (original).

Paul Krugman: Conscience of a Liberal 01/10/13

"I like epic confrontation as much as the next guy, and probably more so. And if I were Treasury secretary — which mercifully is not going to happen — I’d be very cagey about the coin, the coupons, and all that until the day is really upon us, without ruling them out. But we need a strategy to deal with the crazies if they really do prove irredeemably crazy, which seems all too possible" (original).

Mike Moffatt: Globe and Mail (Canada) 01/10/13

"While there should be no direct economic consequences, there may be indirect ones, as the plan could cause foreign investors to lose confidence in the U.S. economy, causing a reduction in investment. While the economics are sound, the idea is best left as a theoretical exercise. (original).

masaccio: FDL 01/10/13

"Mint the Coin has drawn a whole lot of fevered discussion, but Joe Wiesenthal (@theStalwart) has perhaps the best take: the project opens the door to a real discussion of money, its origins and its purposes" (original).

Stephen Carter: Bloomberg 01/10/13

"I am perplexed by the determination of Democrats to enhance presidential power. All the authority they seem so excited to place in President Barack Obama’s hands will one day be wielded by a Republican. I was raised to remember that goose and gander alike sup with the same spoon" (original).

Jerry Khachoyan: Stock Twits 01/11/13

"Why #MintTheCoin Has Already Won 1) The debate has shown who GETS what money is and who does not.  Plain and simple. We operate in a world where the dollar (and many other currencies) is free-floating and nonconvertible. It is truly fiat. Yes, that may sound scary, but it’s the reality in the world we operate. The government basically controls (to an extent) how many dollars (or financial assets) are in the economy (via fiscal and monetary policy). We cannot run out of money, the only issue is real constraints (inflation). Its how much we can supply to how much is demanded. Inflation is not only a monetary phenomenon.

Anyway, hopefully the #MintTheCoin conversation has opened many people’s eyes as to what money truely is and where it comes from. It’s not something dug from underground, or something China sends to us; It’s a social construct (very simplified, but that’s the very core of it). Also, on the flip-side, it has publicized and thus discredited the many that don’t understand what it is.

(original).

Mad Magazine 01/11/13

"If such a ridiculous gimmick were to happen, whose face should grace this coin? President Obama’s? House Speaker John Boehner’s? We humbly submit that there is only one face truly suited to symbolize the stupidity and dysfunction of Washington, D.C. And that face is...well, you know who!" (original).

masaccio: FDL 01/11/13

"Bmaz at Emptywheel makes a potent argument about the separation of powers inherent in the Trillion Dollar Coin. He doesn’t, however, deal with the separation of powers argument inherent in refusing to comply with spending directions of Congress. Bmaz might respond that the President is not refusing to spend the money, he is merely not doing it until he feels he has no choice. Still, assuming that Congress doesn’t act quickly on the matter, the problem becomes intractable almost immediately. Almost all payments are done by computer, not by check. How can short term stoppage of payments be managed without changing computer systems across the government? How is that to be paid for? Can Congress create a separation of powers problem for another branch of government and then use that problem to punish that branch? Can Congress abuse the separation of powers to the detriment of the entire nation?" (original).

NRSC 01/11/13

"We look forward to hearing from each of these Democratic Senators, in addition to the rest of their Democratic colleagues, whether or not they stand with Harry Reid & Chuck Schumer in support of the trillion-dollar platinum coin option that would circumvent Congress and unilaterally raise the debt ceiling" (original).

Billmon: Daily Kos 01/11/13

"Why would minting the coin be a political blunder of the first order? Two reasons:

  1. It would give the Republicans an easy out from the trap they have set for themselves by threatening to take the U.S. financial markets and economy hostage.
  2. It would change the subject from the threat of a financial meltdown to the methods the POTUS has taken to prevent that meltdown."

(original).

Megan McArdle: The Daily Beast 01/11/13

"And so we are getting minute-to-minute strategy at exactly the time that we most need creative long-range planning to address the pressures we face from an aging population. Legislators are no longer thinking ahead even as far as the next election; all their focus is on the next Pyrrhic victory. The very worst thing about this stupid platinum coin idea is that it's the most practical, results-oriented solution that has so far been suggested for our current problems" (original).

Brett LoGiurato: Business Insider 01/11/13

"One Democratic Senate aide recently said that minting the coin would look silly politically, and that the 14th amendment is a much more practical option" (original).

David Taintor: Talking Points Memo 01/11/13

"If the U.S. starts 'making shit up' and decides to mint a $1 trillion platinum coin to avoid another debt ceiling fight, Jon Stewart said Thursday, America should 'go big or go home.' Why not a $20 trillion coin? he said." (original).

Blanchard Online 01/11/13

"'We want a dollar exchangeable into something tangible, real, scarce, and precious -- namely, gold bullion.' The $1 trillion platinum-coin solution to the debt ceiling is an 'urban legend,' Grant's Interest Rate Observer founder Jim Grant tells CNBC's Maria Bartiromo in a Jan. 10 interview in which he offers a devastating critique of Federal Reserve money printing, fiscal irresponsibility, the national debt, and the folly of abandoning the gold standard" (original).

David Taintor: Talking Points Memo 01/11/13

"Nobel Prize-winning economist and New York Times columnist Paul Krugman used his Friday column to make the case for minting a $1 trillion platinum coin if it's necessary to avoid another bruising debt ceiling fight" (original).

Brett LoGiurato: Business Insider 01/11/13

"The National Republican Senatorial Committee is asking every Senate Democrat up for re-election in 2014 where he or she stands on the option of minting a trillion-dollar coin as a means of working around the debt ceiling. The NRSC's statement comes a couple of days after the National Republican Congressional Committee slammed the option of minting a coin and joked that it would sink the Titanic" (original).

Brian Beutler: Talking Points Memo 01/11/13

"Barro, Weisenthal and other proponents have fared well in the debate. The idea’s detractors, initially incredulous, soon began dismissing it as fanciful or perhaps illegal. Some now begrudgingly admit that the plain text of the law in question does appear to grant the executive branch the authority to mint the coin, but remain incredulous whenever the concept is broached — concerned, perhaps, that a debt limit workaround will erode their ability to force Obama to cut popular programs like Medicare and Social Security" (original).

Kevin Siers: Charlotte Observer 01/11/13

Cartoon (original).

John Carney: CNBC 01/11/13

"Whatever you think of it, former car czar Steve Rattner is no friend of #mintthecoin. 'The $1 trillion coin is the dumbest idea since pet rocks #fiscalcliff,' the co-founder of Quadrangle Group tweeted Friday (Original)

Pat Cunningham: Rockford Register Star 01/11/13

"You’ve probably heard talk that a platinum coin worth $1 trillion might be minted as a hedge against the nation defaulting on its debt, but you may not how this arrangement would work." (original).

Jonathon Alter: Bloomberg 01/11/13

"After staying up all night playing his guitar, Woodin hatched his own idea for printing more money without setting off inflation. Every dollar bill had (and has) a line at the top reading: 'Federal Reserve Note.' Woodin decided to temporarily change the line to 'Federal Reserve Bank Note.' The difference was that this new paper currency would be backed not by gold but by the collateral of all banks associated with the Federal Reserve. 'It won’t frighten people. It won’t look like stage money. It will be money that looks like money,' Woodin said.

FDR approved Woodin’s proposal to change the wording on paper currency and -- with the help of other provisions of the bank rescue plan -- the crisis passed. Banks reopened and the country breathed a sigh of relief.

Was that any less gimmicky than the platinum-coin solution?" (original).

San Francisco Chronicle (editorial) 01/11/13

"'Trillion dollar coin' idea is worthless

But the problem with the coin is that it takes a political problem - Congress' inability to act responsibly - and turns it into a financial one. The United States can't just print money just because Congress doesn't want to behave responsibly. The world's most powerful nation can't afford to act that way" (original).

Fred Lundgren: Huffington Post 01/11/13

"The point of exploring this fanciful alternative is to help more of us to understand money, and to realize that we do have alternatives. We can jump-start the economy and we can rebuild our infrastructure with American companies and American labor earning living wages if the president will simply do it" (original).

Michael Derby: Online WSJ 01/11/13

"The “mint the coin” gang doesn’t have a friend in Philadelphia Fed chief Charles Plosser" (original).

Greg Sargent: Washington Post 01/11/13

"In a move that will significantly ratchet up the brinksmanship around the debt ceiling, the four members of the Senate Democratic leadership are privately telling the White House that they will give Obama full support if he opts for a unilateral solution to the debt ceiling crisis, a senior Senate Democratic leadership aide tells me" (original).

Alexandra Jaffe: The Hill 01/11/13

"The National Republican Congressional Committee issued a number of attacks over the past week in the districts of Democrats they think are vulnerable, targeting them on Democrats' "spending problem" and using the coin proposal as evidence." (original).

Ezra Klein: Washington Post 01/11/13

"Jonathan Bernstein and Paul Krugman both have thoughtful responses to my case against minting a platinum coin to solve the debt ceiling. Reading their replies — and talking Thursday with Bloomberg View’s Josh Barro — has helped clarify the issue for me. ... I think that it’s very likely that, in using the coin, something will go wrong. ... You can explain the basic logic of fiat currency until you’re blue in the face, but it’s not going to matter. That coin would drive our country’s increasingly deranged politics, which are really at the heart of this crisis, to the edge. ... I think that minting the coin could go quite badly, while the debt-ceiling fight would likely end quite well" (original).

Marc Howe: Mining.com 01/11/13

"Fox News staffers failed to realize that the notional value of modern fiat currency is not commensurate with the value of the materials used in its fashioning – the paper used for a hundred dollar bill for example is worth far less than one hundred dollars" (original).

Brian Beutler: Talking Points Memo 01/11/13

"May 2010, Beowulf and his fellow monetary enthusiasts were spitballing with each other about what would happen if Congress at some point failed to increase the debt limit, and it hit him. Rather than default, or jerry-rig an overdrafting system with the Federal Reserve, why couldn’t the Treasury mint a “commemorative” coin with, say, a $1 trillion denomination? Not for purchase, of course but to deposit at the Fed, and thus provide Treasury the funds it would need to meet its payment obligations" (original).

Manu Raju and John Bresnahan Politico 01/11/13

"In a strongly worded letter to President Barack Obama obtained by POLITICO, [[Senate Majority Leader HarrySenate Majority Leader Harry] Reid and his leadership team argue that failing to raise the $16.4 trillion debt ceiling would threaten the full faith and credit of the United States. Reid and Sens. Dick Durbin, Chuck Schumer and Patty Murray asserted that Obama 'must make clear that you will never allow our nation’s economy and reputation to be held hostage.'" (original).

David Weigel: Slate 01/11/13

"[On the NRCC lettter] Do Senate Democrats plan to vote for Rep. Greg Walden's "Stop the Coin Act," which will be introduced next week? That's the only way the current statute allowing the magical platinum end-run can be repealed. " (original).

Brad Plumer: Washington Post 01/11/13

"So whether the platinum coin is a workable idea or not depends on what Congress does afterward. El-Erian thinks that “by highlighting the dysfunction of Congress and essentially embarrassing its members, the coin approach could provide the catalyst needed to shock our politicians into a more constructive behavior.” By contrast, J.P. Morgan’s Michael Feroli argues that the platinum coin could actually prolong the crisis — Congress will be more likely to lift the debt ceiling if it’s faced with the immediate prospect of a massive government shutdown than if it’s confronted with a shiny coin" (original).

Ben Terris: Government Executive 01/11/13

"I found the handle to be strangely fitting. In Beowulf, the hero needs the help of a magical sword in order to be able to slay Grendel’s mother. What’s a trillion-dollar coin if not some sort of deus ex machina, a kind of magical weapon from nowhere? And what’s our national debt if not a terrifying monster?" (original).

Felix Salmon: Reuters 01/11/13

"[D]on’t put El-Erian in the #mintthecoin camp with Krugman. El-Erian’s point is an important one: we all agree that the only reason we’re even talking about this is the degree of political polarization and dysfunction on Capitol Hill. But minting the coin wouldn’t make that better: rather, it would exacerbate it further" (original).

Rachel Weiner: Washington Post 01/11/13

"The Republican effort [NRCC letter on the coin] is pretty small — statements to local media in 10 states whose senators will be up for reelection in 2014" (original).

Tim Harford: Financial Times 01/11/13

"Yes. It’s whether America’s economic reputation would be more damaged by another debt-ceiling crisis, or by the executive seizing the authority to create new money" (original).

Clive Crook: Bloomberg 01/11/13

"It’s no small thing for the Treasury to start printing money at its own initiative, and the mere promise that this would be temporary and reversed in due course lacks credibility. This is a technique that, once learned, would be difficult to unlearn" (original).

James Politi: Financial Times 01/11/13

"Most believe a last-minute deal will be reached, as has become customary. Otherwise, it is not just the $1tn coin that could save the day. Some are suggesting the Treasury could issue IOU’s, or warrants, to its creditors that could be sold in private markets, rather than defaulting. Or Mr Obama could simply keep borrowing by invoking the 14th amendment of the constitution, which states that the 'validity' of US public debt 'shall not be questioned'.

But even if the worst fiscal disaster is skirted, each of these options would still leave America’s reputation for its management of economic policy in tatters. (original).

Charles Cooke: National Review Online 01/11/13

"However 'insane' you think it would be for Congress to refuse to raise the debt ceiling, it is Congress’s right to be that 'insane.'" (original).

Ilya Gerner: Comedy Central 01/11/13

"Dumb Reason to Oppose the Coin #3: It sounds wacky and is premised on a hyper-literal interpretation of an obscure statute. The U.S. would look mighty silly if we did this. Why It's Dumb: Minting the coin is no sillier than putting our government in a position where it's legally required to make payments (because Congress has passed binding appropriations bills and the Social Security Act) and simultaneously forbidden from borrowing money to make these payments (because Congress refuses to raise the debt ceiling)" (original).

Rob Wile: Business Insider 01/11/13

"The True Story Of The Time The Government Printed A $100,000 Bill" (original).

James Politi: Financial Times 01/11/13

"Democratic leaders in the Senate gave President Barack Obama the green light to sidestep Congress and take executive action to avoid a default if no agreement is reached to raise America’s borrowing limit. " (original).

Kevin Drum: Mother Jones 01/11/13

"So why is one vile while the other is merely reckless? That's simple: In the case of a budget showdown, Republicans would be refusing to authorize new spending. But in the case of the debt ceiling, Republicans would be explicitly refusing to pay bills they've already run up. This is the action of a banana republic, not the most powerful nation on earth, one whose reliability and good word is crucial to the orderly workings of global financial markets." (original).

Joe Weisenthal: Business Insider 01/11/13

"[JON STEWART:] 'I'm not an economist. But if we're going to just make [stuff] up, I say go big or go home. How about a $20 trillion coin?' Or, he suggested, maybe a $1 "quillion" coin.

'We don’t need some trillion-dollar coin gimmick. We need a way to get the world to take the U.S. dollar seriously again.'" (original).

Mohamed El-Erian: CNN Money 01/11/13

"I suspect that market reaction would be generally calm if the option were used as a way to diffuse what could otherwise be a repeat of the debt ceiling debacle in the summer of 2011 -- when political brinkmanship and bickering harmed growth, risk assets and the country's credit rating" (original).

Mike Curtiss: KGMI 01/11/13

"Western Washington University economics Professor David Nelson says the made up money would only increase inflation, and would simply delay when the country reaches its debt limit. He says the technique could also make foreign investors lose respect in the US dollar as the world's reserve currency" (original).

Peter Coy: Businessweek 01/11/13

"There are at least nine ways the U.S. can avoid crashing into the debt ceiling besides the one everybody’s talking about lately, namely minting a trillion-dollar platinum coin. Not necessarily nine better ways, to be sure. The coin gambit, rich in numismatic strangeness, deserves every bit of hype it’s getting" (original).

Weasel Zippers 01/11/13

"Something tells me Krugman would not have endorsed such an absurd idea [as The Coin] back when Obama was voting against raising the debt ceiling during the Bush administration" (original).

Jonathan Chait: New York Magazine 01/11/13

"[Jon Stewart] seems to think the plan is designed not to prevent massive market dislocations caused by Republicans refusing to lift the debt ceiling, but to cover the budget deficit" (original).

Joe Weisenthal: NPR 01/11/13

"[NPR transcript] BLOCK: You do hear people saying why not mint $16 trillion in coins, pay off the entire debt? Where does this end? WIESENTHAL: That gets back to this question of why isn't it inflationary. And so if you start thinking of the coin, if the purpose is to pay off the debt, then you're actually talking about creating coinage so that we can spend a lot more money and that would be inflationary. The purpose of this is not to pay off the debt. It's a legal loophole essentially of debiting on $1 trillion to the Treasury's account at the Fed and then continuing normal spending" (original).

Devin Smith: New Economic Perspectives 01/11/13

"#MintTheCoin T-shirts and Hoodies Now Available!" (original).

The Franklin Mint 01/11/13

"Once the design is settled, there is then the matter of size of the finished coin to consider. A one-of-a-kind piece like this should be of a monumental size. The largest coin minted today by the US Government is the 5 ounce silver National Parks coin, which is about 3” in diameter" (original).

Atrios: Eschaton 01/11/13

" Creating money from nothing is what the Fed does all of the time. Reporters aren't mystified by that. The Fed has statutory authority to do that. So does the Treasury, though the Treasury can't just push a button and add a zero to the end of their bank balance like the Fed can. They have to mint a platinum coin" (original).

Prairie Weather: The Moderate Voice 01/11/13

"Instead [The Coin is] a Constitutional special effect in which the president accepts the Constitutional opportunity to mint a 'commemorative' coin worth a conceptual trillion dollars as a bailout for a group of legislators who refuse to take up their normal responsibilities. It’s a fake toad in a real garden" (original).

Leigh Ann Caldwell: CBS 01/11/13

"[I]t's hard to imagine that the president would choose to anger Congress with an idea started by a Georgia lawyer called Beowulf in the comments section of an economics blog or the subject of a Simpson's episode" (original).

Ryan Cooper: Washington Monthly 01/11/13

"Stewart, in quite possibly the laziest and most irresponsible segment I’ve ever seen on the Daily Show, doesn’t mention any of that background; in fact he gives a grossly misleading context. “America’s got a bit of a cash flow problem these days,” he says. “We’ve have a 16 trillion dollar debt, our credit rating was downgraded for the first time last year. I think we can all agree it’s time to get serious and figure out a way to restore the world’s respect for the soundness of our currency.” This is just utterly wrong. There is no worry whatsoever in the markets about the soundness of the dollar. Again, demand for US debt is so strong that people are literally paying us to take their money—inflation-adjusted yields for 10-year Treasury bonds are below zero" (original).

Atrios: Eschaton 01/11/13

"I don't buy the 14th amendment argument. I don't see how issuing IOUs isn't just violating the debt ceiling in another way. It's not clear that there's legal authority for prioritizing spending or not spending what Congress has said to spend. All that's left is the coin." (original).

The Daily Howler 01/11/13

"No one with an ounce of sense is still paying attention to the various cries of wolf which emerge from these flirtations with alleged disaster. In that passage [in "Coins Against Crazies"], Krugman utterly fails to tell the people why this latest crisis could turn out to be “vile”—truly bad." (original).

David Daley: Salon 01/12/13

"'The President and the American people won’t tolerate Congressional Republicans holding the American economy hostage again simply so they can force disastrous cuts to Medicare and other programs the middle class depend on while protecting the wealthy,] [Press Secretary Jay] Carney said in a statement. 'Congress needs to do its job.'" (original).

C. S. Wyatt: Almost Classical 01/12/13

"But, the game has to end someday. How will it end? Badly. Not even a magical $1 trillion coin will fool the markets. I happen to believe that any additional gaming of the system will spook the bond market and equities markets. Talk of endlessly printing money or minting magical coins will spook the market as badly as an abrupt halt to Fed bond purchases" (original).

DIgby: Hullabaloo 01/12/13

"It's hard for me imagine the president or the Democrats having the nerve to do this, but it's possible they'll have no choice. The Republicans are so nuts they may demand things that the Democrats literally cannot deliver." (original).

CNBC 01/12/13

"With another standoff with Congress over raising the debt ceiling looming as early as mid-February, a petition on the White House website asks the administration to create a single platinum coin worth $1 trillion to avoid a stalemate over lifting the borrowing cap. The petition has garnered more than 7,100 signatures.

An asset of that value would place the United States well within its $16.4 trillion borrowing limits, the argument goes.

Pressed to rule out the idea, White House Press Secretary Jay Carney on Wednesday passed the buck.

"I would refer you to Treasury for the specifics of this question," Carney told reporters. "I can tell you that the president does not believe that there is a backup plan or a Plan B or an off-ramp."

Carney would only say the president doesn't believe there are alternatives to raising the debt limit." (original).

Elizabeth Titus and Donovan Slack 01/12/13

"[T]he Treasury officially shot down the [Proof Platinum Coin Seigniorage] idea Saturday and put the onus back on Congress to increase the debt limit" (original).

Beowulf: Monetary Realism 01/12/13

"Treasury: We won’t mint a platinum coin to sidestep the debt ceiling. ... [T]o climb in the water to fight the shark is just irrational when you can stay in a boat and throw sticks of dynamite. ...However, its also possible that the New York Fed has a Manhattan Project or two up its sleeve. Time will tell. .. Tsy blaming the Fed for not issuing the TDC is weak, like blaming your dog for you not going out for a walk this evening" (original).

UPI 01/12/13

"The U.S. Treasury Department Saturday ruled out the possibility of solving the debt ceiling dilemma by minting a $1 trillion platinum coin" (original).

Eric Morath and David Wessel: MarketWatch 01/12/13

"'Neither the Treasury Department nor the Federal Reserve believes that the law can or should be used to facilitate the production of platinum coins for the purpose of avoiding an increase in the debt limit,' said Treasury spokesman Anthony Coley." (original).

Steven Dennis: Roll Call 01/12/13

"The pressure now will be on Congress to act. Speaker John A. Boehner, R-Ohio, has said he wants $1 in spending cuts for every $1 debt limit hike — a demand dubbed the Boehner Rule. But President Barack Obama has said he will not negotiate the issue. The last time the debt was held hostage by the GOP, in 2011, he warned that Social Security checks, as well as other federal payments, might not be issued" (original).

Thomas Sewell: Come, Let Us Reason Together 01/12/13

"The 'mint a coin to pay the Fed' idea was popularized by Presidential Candidate Bo Gritz back in 1992. It was a huge part of his platform at the time, spoken about at every campaign stop. (original).

Josh Marshall: Talking Points Memo 01/12/13

"I think this is what the White House means by not negotiating. No way out. The President is saying 'we’re not going to play that game anymore.' We’re not going to engage or be co-opted by your attacks on the country.

The problem is you’re dealing with people who simply may not flinch. Who may happily break what generations of Americans have spend centuries — literally centuries — building.

This is where I’m glad I’m not President. Because I don’t know what I would do if and when the Republicans really … like really force the first default in over 230 years of American history. But he’s drawing that line. The Platinum Coin just muddies it" (original).

James Fallows: The Atlantic 01/12/13

"For political-spectacle reasons, I'm sorry that we're apparently not going to have further discussions about a new trillion-dollar platinum coin -- shown in one imaginative depiction here. But nothing about the magic coin is less logical, or exposes America to more ridicule, than the debt-ceiling showdown we're apparently about to endure once again" (original).

Mike Shedlock: Global Economic Trend Analysis 01/12/13

"At long last, a stupid, as well as illegal idea dies on the vine." (original).

Eric Morath and David Wessel: Online WSJ 01/12/13

"The U.S. Treasury and Federal Reserve said they won't pursue a plan to mint a trillion dollar coin as a device to avoid the debt ceiling" (original).

Hayley Peterson: Daily Telegraph (UK) 01/12/13

"The Treasury Department will not mint a trillion-dollar platinum coin to avert another battle over raising the debt ceiling, meaning Congress and the White House have no option but compromise in order to avoid default" (original).

Zach Wahls: MSNBC 01/12/13

"With the first half of the fiscal cliff behind us, the White House needs leverage in negotiating with House Republicans—despite its insistence that it refuses to negotiate—and “Mint the Coin” was an interesting, Austin Powers-esque proposal that many folks thought could be that leverage. It was an interesting and quirky idea that would have been toxic to Democratic candidates everywhere. There are few things more potentially dangerous to a party working to preserve entitlement spending than simply conjuring money out of thin air. The GOP attack ads write themselves. They could have been devastating in 2014′s midterm elections" (original).

Modeled Behavior: Forbes 01/12/13

"[T]he Treasury could simply enter into a Repurchase Agreement with the Federal Reserve over All Unleased Federal Offshore Oil Rights or some other suitably large asset. The Treasury would sell the right to lease Federal Offshore Oil Rights to the Federal Reserve for say $500 Billion and simultaneously write a contract to purchase those same rights back on Jan 1, 2014 for $500 Billion. The Treasury has created a spending obligation but I assume, no debt. Yet, the operation provides $500 billion in immediate liquidity." (original).

Kevin Drum: Mother Jones 01/12/13

"When it comes to the Most Important Political Topic Of Our Times™—namely the possible minting of a $1 trillion platinum coin—Ezra Klein advances the ball today. The idea behind this slow-news-week chimera is that the Treasury would mint the coin, deposit it at the Fed, and voila: the government has more money to spend even though we've hit the debt ceiling. Up to now, we've all argued about whether this is a good idea; whether it's legal; and whether President Obama would ever consider this option in the first place. But there's always been another question rolling around in my head: would the Fed even accept the coin? If they won't, the whole idea runs aground instantly.

Well, it turns out they wouldn't: "Neither the Treasury Department nor the Federal Reserve believes that the law can or should be used to facilitate the production of platinum coins for the purpose of avoiding an increase in the debt limit," a Treasury spokesman told Ezra today" (original).

Doug Mataconis: Outside the Beltway 01/12/13

"However, as I’ve noted before, I don’t think that the advocates of the Platinum Coin strategy ever had a realistic view of how Republicans, even moderate Republicans, would react to something as egregiously extra-legal as this. Instead of “solving” the debt ceiling crisis, minting a Platinum Coin would likely exacerbate it and, in the process, create a Constitutional crisis that would likely sour relations in Washington between the parties even more than they already are for the remainder of Obama’s Presidency." (original).

Joe Weisenthal: Business Insider 01/12/13

"[Chris Hayes] showed a cartoon that was made by Abraham Lincoln's critics, showing him creating cash with a magic money machine, that looks so much like a lot of the anti-Bernanke stuff you see online today." (original).

Gil Aegerter: NBC 01/12/13

"Proponents of the coin have said they want to avoid a repeat of the near-self-induced default by the U.S. Treasury in July 2011. That battle caused the stock market to fall, cost the U.S. its Triple-A credit rating and produced the still ticking 'fiscal cliff' budget time bomb" (original).

Chris Hayes: MSNBC 01/12/13

Saturday’s guests (Jan. 12): The phenomenon of the trillion dollar coin, evaluating Tim Geithner’s legacy... (original).

Reuters 01/12/13

""Neither the Treasury Department nor the Federal Reserve believes that the law can or should be used to facilitate the production of platinum coins for the purpose of avoiding an increase in the debt limit,' said Treasury spokesman Anthony Coley in a statement" (original).

Philip Klein: Washington Examiner 01/12/13

"This news is not at all surprising. As I previously argued, if President Obama minted the platinum coin, it would have been a huge political gift to Republicans. The idea was both easy to mock and to attack as a new power grab by Obama. But now, Republicans leaders are in a more difficult position, because it will be easier for Obama to lay the blame for any economic chaos that could result from a failure to raise the debt ceiling directly at the feet of the GOP" (original).

Brett LoGiurato: Business Insider 01/12/13

"... Democrats are somewhat dumbfounded by the administration's decision to rule out the trillion-dollar coin option. Earlier, a Senate Democratic aide told Business Insider that "it's certainly a strange negotiating strategy to go out of your way to decrease your leverage by taking options off the table. (original).

Igor Bobic: Talking Points Memo 01/12/13

"'Neither the Treasury Department nor the Federal Reserve believes that the law can or should be used to facilitate the production of platinum coins for the purpose of avoiding an increase in the debt limit,' said Treasury spokesman Anthony Coley in a statement obtained by TPM" (original).

Zach Carter: Huffington Post 01/12/13

"Treasury's rejection of the coin and the 14th Amendment leaves only one other non-traditional option for averting the debt ceiling: issuing IOUs instead of actual money to make good on obligations. The move would jeopardize confidence in U.S. economic policy and would not be immune to legal challenges. California was able to stave off its own budget crisis with IOUs in 2009, however" (original).

matttbastard: The Agonist 01/12/13

"Meanwhile I’m seeing tweets like this from Dem stalwarts:

That’s how it should be. RT @theplumlinegs: Nixing of coin presents GOP with stark choice: Compromise, or be seen destroying US economy.

— Kevin Drum (@kdrum) January 12, 2013

Which rather smacks of Democrats playing their own game of chicken with the national economy for their own political gain, to me. In fact, it sounds very like the Dem plan, from people who all earn more than the national average, is something along the lines of 'The Republicans will blink first but even if they don’t and the economy tanks all the poor people who will get even poorer will blame them and vote for us, so where’s the downside?'”

(original).

Elspeth Reeve: The Atlantic 01/12/13

"This is probably the coolest plan, in that it sounds like something from a James Bond or Austin Powers movie, plus it was a Simpsons episode. In theory, the government would never have to ask Congress to raise the debt ceiling again. ... The coin's coolness is also a liability" (original).

Ezra Klein: Washington Post 01/12/13

"Three things worth thinking about in Chris’s presentation: First, the degree to which concern over the coin stems from the perception that it 'illustrates the uncomfortable foundational reality of modern capitalism: Money is nothing more than a shared illusion.' The optimistic way of framing that dimension of the opposition is that it’s illogical and can be corrected with calm counter-argument. The more pessimistic take is that part of why modern capitalism works is that policymakers typically succeed in keeping the public from thinking too hard about how fiat currency is created. (original).

Weasel Zippers 01/12/13

"Treasury: No, We Won’t Mint A Trillion-Dollar Platinum Coin… Paul Krugman hardest hit" (original).

Annie Lowrey: New York Times 01/12/13

"The Treasury Department said Saturday that it will not mint a trillion-dollar platinum coin to head off an imminent battle with Congress over raising the government’s borrowing limit. ... The idea of minting a trillion-dollar coin drew wide if puzzling attention recently after some bloggers and economic commentators had suggested it as an alternative to involving Congress. " (original).

Tim Duy: Econmist's View 01/12/13

"Apparently fiscal and monetary cooperation is alive and well - the US Treasury and the Federal Reserve conspired to kill the platnium coin idea. In retrospect, we should have seen this coming. As the debate continued, it became increasingly evident that the platinum coin threatened the conventional wisdom in very deep and profound ways. It was a threat that could not be endured by Washington. If there is no difference between cash and Treasury bonds, why should we issue bonds at all? Why not simply issue cash? In other words, at the zero bound, what is the argument against monetizing deficit spending?" (original).

Sam Stein: Huffington Post 01/12/13

"'This now puts all the pressure back where we believe it belongs: on the Republicans,' a senior administration official told the Huffington Post. 'There are no magic coins. There is no way to get out of this. We feel fine about the politics of it. We think we are in a stronger position if Republicans realize there is no out'" (original).

Tyler Durden: Zero Hedge 01/12/13

"And just like that the most surreal two weeks of sheer monetary idiocy is over, with the Treasury and the Fed both formally announcing the death of the trillion trollin' dollar platinum  coin idea, which was nothing but a cheap charlatan trick devised by page view-desperate media outlets to dumb down their already confused audience and distract from the fact that the US is, sadly, once again on the verge of bankruptcy" (original).

Jazz Shaw: Hot Air 01/12/13

"And a great sigh was heard across the land. The dreams of a yearning nation will, it seems, be left unfulfilled. Yes, my friends, even worse than when Mighty Casey Struck Out, the Treasury Dept. has ruled out the minting of the $1T coin to solve our fiscal woes" (original).

Paul Krugman: Conscience of a Liberal 01/12/13

"So What Will You Do, Mr. President? If I’d spent the past five years living in a monastery or something, I would take the Treasury Department’s declaration that the coin option is out as a sign that there’s some other plan. ... The thing is, the coin option sounds silly, but it clearly obeys the letter of the law. As far as I can tell, none of the other options — other than outright surrender — has the same virtue. ... As I said, if we didn’t have some history here I might be confident that the administration knows what it’s doing. But we do have that history, and you have to fear the worst. ready to go. Maybe 14th Amendment, maybe moral obligation coupons or some other form of scrip, something. (original).

Mike Shedlock: Town Hall 01/12/13

"At long last, a stupid, as well as illegal idea dies on the vine" (original).

DIgby: Hullabaloo 01/12/13

"I'm not sure withdrawing the threat of the coin or the 14th Amendment remedies qualifies as an offer in that context. But since they've thrown away their only bargaining chips before they even started, it's fair to say that anything they agree to from now on should be seen as something they wanted, not something they needed" (original).

Paul Krugman: Conscience of a Liberal 01/12/13

"Ah. Charles Plosser of the Philadelphia Fed is against the platinum coin, which he says “doesn’t solve any real problem” and would hurt our credibility.

Actually, it solves a very real problem: attempted extortion by the GOP. And on the credibility front, who better to lecture us on such matters than a man who has been predicting an inflationary explosion for five years?" (original).

Jonathon Trugman: New York Post 01/12/13

"Yes, $1 trillion, one coin. And so the hunt for 'something for nothing' continues" (original).

Zele Miller: Buzzfeed 01/12/13

"The Federal Reserve was responsible for killing a controversial proposal to circumvent the debt limit, a senior administration official told BuzzFeed Sunday" (original).

Mallory Ortberg: Gawker 01/12/13

" Put down your comically oversized bags with $$$ scrawled on the side, slip off your burglarin' shoes and drop the crowbar: the trillion-dollar coin is no more, and with it, your dreams of one last big heist just to see if the team still has some of the old magic. From the Washington Post..." (original).

Ezra Klein: Washington Post 01/12/13

"The Treasury Department will not mint a trillion-dollar platinum coin to get around the debt ceiling. If they did, the Federal Reserve would not accept it.

That’s the bottom line of the statement that Anthony Coley, a spokesman for the Treasury Department, gave me today. 'Neither the Treasury Department nor the Federal Reserve believes that the law can or should be used to facilitate the production of platinum coins for the purpose of avoiding an increase in the debt limit,' he said." (original).

bmaz: Emptywheel 01/12/13

"'Minting the Coin!' contemplates a naked power grab by the Executive Branch of historic proportions. It is a wholesale taking of the Congressional purse prerogative under the Constitution. But, hey, it's an 'emergency'. Of course. It always is when the Article II Executive Branch comes to feed in the name of efficacy" (original).

David Nicklaus: St. Louis Post-Dispatch 01/12/13

"Congress has, after all, already decided how much to spend and how much to collect in taxes. To say we can’t borrow to make up the difference is to deny the fundamental laws of arithmetic" (original).

Chris Hayes: MSNBC 01/12/13

"Just as a $100 bill isn’t made of $100 worth of cotton, a new trillion dollar coin wouldn’t be made of a trillion dollars of platinum. Just a single, small bit of platinum will do. That’s all: it’s really just an invention. Economist John Kenneth Galbraith once said: “The process by which banks create money is so simple that the mind is repelled.” And the same can be said of how our government creates money. The simple truth is it creates money simply out of thin air. Someone at the Federal Reserve punches in a number on a spreedsheet and–voila!–more money. At moments of profound crisis it was precisely this kind of monetary magic that helped the U.S. avoid catastrophe–Abraham Lincoln printed greenbacks to fund the union and his opponents mocked him mercilessly for doing so — which this cartoon from the time, depicting a machine spewing bills, shows. And FDR ditched the gold standard to get us out of the Great Depression. Both those ideas were, at the time, probably about as ridiculous as a trillion dollar coin." (original).

Don Lee: Los Angeles Times 01/12/13

"'There are only two options to deal with the debt limit: Congress can pay its bills or it can fail to act and put the nation into default,' White House Press Secretary Jay Carney said" (original).

Connor Simpson: The Atlantic 01/12/13

"The best romances are the short ones. The dream of the White House minting a platinum coin worth $1 trillion to avoid a debt ceiling crisis is officially done. [I]t wasn't meant to be, boys. The idea was ridiculous and straight out of a movie. It couldn't happen, ever. It was a little too..." (original).

Michael Strain: AEI 01/12/13

"The most compelling argument against the coin, in my mind, was opening the Pandora’s box of running a printing press. Economies have been devastated by this action. Taking partial control of the money supply away from the Federal Reserve and giving it to the Treasury could be disastrous." (original).

The Economist 01/12/13

"The bigger problem is political. The Fed purchases bonds by choice to carry out monetary policy. Being forced to buy the $1 trillion coin would be a textbook case of monetising the debt and a gross violation of the Fed’s independence. The manoeuvre would violate the intent of Congress in creating a debt ceiling (daft though that is). In any case, the idea is just too weird to be taken seriously" (original).

KOSU 01/12/13

"Following the announcement, White House Press Secretary Jay Carney said in a statement: 'Congress either can pay the tab for spending it has racked up or it can send the nation into default, which would have serious economic consequences.'" (original).

Michael Maiello: Dag Blog 01/12/13

"Money, as we use it, is simply created by either the Treasury or the Federal Reserve. Sadly, I think that most people don't think of money that way. Every dollar is just a share of trust in the U.S. government. But people think it equates to something tangible. For historical reasons, people usually translate it into gold, silver or another precious metal like platinum. This metal fixation is just a fetish but, whatever. Obama's not going for it" (original).

Boston Globe 01/12/13

"Regardless, resorting to the $1 trillion coin option would likely undermine market confidence, just as another debt standoff would. The gambit would just be the wildest, wackiest episode on a years-long bender of partisan dysfunction — fighting crazy with crazy. The mere possibility of the platinum coin should prompt the House GOP to stop playing games with the debt ceiling and both sides to cut a long-term budget deal" (original).

Donald Marron: Christian Science Monitor 01/12/13

"The administration has previously ruled out another oft-discussed debt-limit safety valve, overriding the limit based on the 14th amendment. So “Plan B” discussions will now move to two other alternatives that have been bandied about: prioritizing payments or, as Ed Kleinbard suggested the other day, issuing scrip like California did a couple years ago. Of course, issuing scrip *is* prioritizing payments, but with the added feature (or complication) of a written, transferable IOU" (original).

The Economist 01/13/13

"[Free Exchange columnist:] There are at least three reasons why this option has been rejected. The first is that it's probably not legal for the Federal Reserve to facilitate such a transaction for the purpose of financing the government. The second is that even if it were legal, it would seriously hurt the reputation and credibility of the Fed, fueling accusations it had subordinated monetary policy to fiscal policy. (This is discussed in more detail in a previous post.) The third and most important is that it lets Congress evade its responsibility for dealing with the debt ceiling" (original).

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