New York Sun
Editorial: "The Platinum Coin Trick" (original).
It strikes us that this is the missing element in the grand bargain President Obama keeps talking about. This elusive bargain is supposedly a deal that would comprise both spending and taxes. But how can one resolve spending and taxes without also making a deal to end the era of fiat money? It is fiat money — issued without any reference to specie — that enables the Fed to to cover the government’s deficits, while the government resorts to Congress only on such occasions when the debt ceiling is reached. It’s a dodge every bit as improper as the coin trick about which Congressman Nadler has said he’s “absolutely serious.”
NOTE It would be a highly ironic outcome if the end of the fiat money regime came under the Obama regime, before we had the chance to use money for public purpose.