The $1 trillion coin; I heard about this a week or two back and thought it was joke. Surely it was a joke, right? Then I read about it again… and then again… but it was a joke? Then it popped up on Drudge yesterday and this time from a link to ABC news. Is this news? Is it news that is worthy of a (any) journalist’s time to write about? Unfortunately, as messed up as this country has become, I truly believe that this is some sort of “trial balloon.” A trial balloon just to see the reaction of the public. Maybe it is a test to see just how dumbed down we are or if we still need some more “work”.
What a brilliant idea this $1 trillion coin made of platinum is. First, because it’s made of platinum (something not mentioned in The Constitution), a Constitutional amendment would need to be passed (or not). No problem. Actually strike that thought since The Constitution is “just a piece of paper” and we haven’t followed it for years so why start now? And why mint only one coin? Why not mint 16 of them and zero out ALL of the debt accumulated (70% in just the last 12 years of stupidity)? Heck, why not mint 32 coins and create a $16 trillion surplus/slush fund? We could party for the next 10 years like it’s 1999 and wake up with no deficit hangover! The thinking person really must ask, “Why did it take so long to come up with such an easy/brilliant solution?”
There are of course other as yet “unseen” benefits to this fabled coin. We would no longer need to have “fiscal cliff” or “debt ceiling” talks. The lack of 3 ring circus acts may be disheartening to some but for others, the lowered “stress” levels would take the burdens on the medical system and almost eliminate them. Plus, with Congress no longer needing to make “tough” decisions like raising the debt ceiling, they could really get to work putting in place all sorts of social plans designed to lessen the standard of living for those who work (down) to that of the majority who don’t. Think of how “fair” Congress could make things if they weren’t so occupied trying to make ends meet or for that matter deciding whether or not to raise the debt ceiling. This coming debt ceiling “question/debate” is really a tough one and is going to take some real soul searching on the part of our lawmakers. I mean really, how can any member of Congress know, REALLY know that the level chosen is the right one? What if they don’t raise the “ceiling” high enough? Or God forbid… TOO MUCH? No, this $1 trillion coin idea will allow Congress to focus their energies where they are really needed AND where we elected them to get to work!
Some may ask the silly question “Why not just print $1 trillion?” Or why not just print $16 trillion and pay off the debt? First off, we already tried that and it didn’t work did it? Secondly, this would destroy the value of existing Dollars through hyperinflation, everyone already knows this. Plus, what would foreigners think if we just printed $1 trillion out of thin air? They would feel “taken” or “abused” wouldn’t they? They might even decide to stop accepting Dollars so why risk it? Just mint 16 (preferably 32 of them because I like parties) coins, pay down the debt and call everything square!
As funny as it may sound coming from me, they are “on to something” but just haven’t figured that part out yet. Assuming that there is actually some Gold (left) in the darkness of the Ft. Knox vaults (which I don’t), the price of Gold could be marked up to $100,000 or $1 million per ounce and the federal deficit (and thus the entire global banking system) would be re-collateralized and on a sound footing (for a while) again. Seriously, marking the price of Gold up to unthought of levels would make whatever Gold still remaining with the central banks enough to pay back the last 30-40 years of drunken sailor activity. Of course, there would also need to be promises by these central banks and sovereign treasuries. Promises like “now that we see the error of our ways, we PROMISE never to do it again”. And of course with “promises” we would need something substantial to back them up. As important as this is I would want some real ironclad assurances, they would be required to not only “swear”, they would be made to “double pinky swear”!
OK so enough with the sarcasm. How, in any serious world could a strategy like this $1 trillion platinum coin even be discussed? Who in their right mind could listen to this and not burst out laughing? Do they really think that the public (not to mention more importantly our creditors) are so stupid as to accept “nothing in return” for the “something” that has already been borrowed? Do they not see that by even discussing this topic they risk unveiling the fact that Dollars have no value whatsoever and thus the fact that because Dollars are reserves for everything, everywhere… it’s all just one big Ponzi scheme?
I have said all along (for at least 10 years now) that the Dollar scheme was one based on the “never pay” premise. If what is now being bandied about doesn’t illustrate this, nothing ever will until the system crashes and “everything is worth nothing!”