My musings on the trillion Coin- Comments.

[fb101]

I've avoided reading very much about the trillion dollar coin because I wanted to think about it on my own.
So here are my thoughts, absurd though they may be, they are original even thought they may reflect other things that have been said.

OK, I know I'm dumb for even contemplating the results of this, but what I did read seemed to be pointed at either the absurdity or the
ingenuity depending on which side of the fence [they] sit on.

So, here's what I think happens;

The first is almost obvious, the dollar would be viewed as compromised, and could fail immediately.
Given the worlds ability to ignore reality lately, that might not happen.

the other one I can;t see how it could NOT happen, and possibly more devastating.
The existence of a fixed amount of platinum bullion with a specific dollar tag on would become the defacto metal standard.
Meaning, the existence of that coin, 1000 toz (random number) being used as a $1T coin would mean that platinum is now a fixed price commodity at $1B/Toz

Now I know the ratio of AG/AU is 1/50, so what is the "natural" ratio of AU/PT?

Edit: I missed saying this; the difference between this and coins like ASEs and AGEs is that those are figurative numbers,
this would have actually been used as payment of a debt.


?Comments?

[Thogey]

The fact that this is even on the table means we are screwed. It's over, all realistic solutions are discarded.

I would make the coin out of plutonium. If the Chinese call in our debt we can offer to send them 2 coins in the same package.

Keep drawin those checks you baby boomers, after all ya'll paid into the system, the system you set up.

Let's just crash it and start over, the sooner the better. So medicare is underfunded? What's the loss?

Without a culture of self-reliance and the willingness to work till you die (which I and my son will have to do) we have NO hope.

[Sheikh_yer_Bu'Tay]

The Trillion dollar coin idea is a silly one. Why stop at one? Why not mint 200 of them? That way we cover not only our national debt, but all other unfunded liabilities of this generation?

China and other countries have already stopped buying our debt. The Federal Reserve is now almost the exclusive buyer of USA debt. Why not? They don't even bother to print the FRN's now to cover such a purchase. It is all electronic credits being created out of thin air with the stroke of a keyboard button.

There are other countries with a higher GDP to debt ratio, but the currency of those nations is not the reserve currency of the world's financial markets.

Keep stackin'. This will not end well for most people in the USA.

[IdahoCopper]

Here is an article:

http://maddowblog.msnbc.com/_news/2013/ ... ackup-plan

"For all the recent scuttlebutt about resolving the Republican debt-ceiling crisis with a trillion-dollar coin, there was an elusive detail: what does the White House think about this? Yesterday, for the first time, press secretary Jay Carney was pressed for an answer."

...............

"Carney's comments seem to have been interpreted in two competing ways: (1) he didn't take the coin idea off the table, so it remains a real possibility; ... "

[Mossy]

I would make the coin out of plutonium. If the Chinese call in our debt we can offer to send them 2 coins in the same package.

Burn a hole in your pocket, for sure.

And your leg.

[Morsecode]

So, here's what I think happens;

The first is almost obvious, the dollar would be viewed as compromised, and could fail immediately.
Given the worlds ability to ignore reality lately, that might not happen.

Bullseye. Although you may be a year or two ahead of the curve.