The trillion dollar coin

With the federal government stumbling its way toward a fight over the debt ceiling, one idea floated as a way to avoid all the nastiness and allow Uncle Sam to keep on spending is for the Treasury to mint a $1 trillion platinum coin. While said coin’s face value would be greater than all the platinum mined in the world to date, Paul Krugman says the concept, while silly, would also be benign…and totally constitutional.

Nah. It’s just silly:

  • I’ve got a $100 trillion bill from the Bank of Zimbabwe. When folks suggest that we start emulating the government of Zimbabwe, I think it’s probably a safe sign that things aren’t that great.

    • What they’re doing is essentially setting a devaluation target setting the value of the metal in the coin to the number of US dollars on its face. That’s the “ideal value” of the dollar in the centrally-distributed world (over 1000x reduction in purchasing power from here).

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