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Posted by tipper 2013-01-09 08:27||
#5 A platinum mirror I can understand. But platinum smoke seems like a waste.
Besides, imagine the battles over whose portrait belongs on the face
That would be Obama in his ermine ruff, of course.
Posted by KBK 2013-01-09 09:08||
#6 Did it solve Zimbabwe or the Weimar republic's problems?
Posted by Bright Pebbles 2013-01-09 12:15||
#7 Government creates money all the time. We have a Treasury Department that has been doing this since 1787. We have a Federal Reserve that has been doing this since 1913.
Look at the money supply measures (M1, M3, etc) over the last two centuries. We create coinage, bills, bank reserves, etc all the time.
The question isn't whether government can create a $1T coin and call it legal tender. Of course it can, and can do so the same way it authorizes printing of $1 bills.
The question is what would happen if government did this. Okay, let's do that armchair experiment.
Let's coin 20 $1T coins (call them 'Krugmans'). Deposit the 20 Krugmans in the Treasury.
What happens next? Well, the Treasury either tries to 'spend' them -- proffer them in the markets to pay our bills -- or tries to borrow against them -- use them for collateral.
Either way the markets will likely say no, or say yes only under the most onerous terms.
And if either works, you are increasing the money supply by a substantial amount. I think there's a term for what happens when the money supply increases relative to the goods and services available. Hmmm, what's that word again?
Create a $1T Krugman if you want. Government can do it. It just isn't wise.
Posted by Steve White 2013-01-09 12:34||
#8 It would only work if the coin weighed 18,000 tons. I say make it and hand it directly to Obama.
Posted by airandee 2013-01-09 15:12||
#9 I have (Framed) A Ten Million Dollar Zimbabwe Note, totaly worthless, the Trillion Dollar Coin would also be worthless when minted.
Excepy as a curiosoty, not worth a damn.
Posted by Redneck Jim 2013-01-09 16:21||
#10 Make it out of plutonium and when you stack a couple or so on each other, you get critical mass. Top Secret™
Posted by Alaska Paul 2013-01-09 16:49||
#11 The Ningi?
When will Krugman say we need a triganic Pu?
Posted by Bright Pebbles 2013-01-09 16:57||