Biden's magical PLATINUM coin?

[thecrazyone]

Wonder if this will happen?

https://www.cnn.com/2021/09/28/opinions ... index.html

[Kurr]

I was JUST getting ready to link that.

From the article...

Due to a technicality in the law, the Treasury Department can print a platinum coin and assign a huge value to it -- say, $1 trillion -- and sell it to the Federal Reserve Board. This would get around the need to borrow.

That is not a "technicality the law" But a Constitutional Authority, right? And if we can just do that why have we been borrowing at interest for 108 years??

I'm confused as to why this is being put forth to the masses as an idea by one of the big "gatekeepers" like CNN, especially in such turbulent times.

[thecrazyone]

I think it's kept behind the scenes because, why would you possibly want to pay off your debt, when you can just have someone give you more credit? I know what the realistic thought here should be (pay off your debt), but when you're a lifelong politician, and it's not your own money, why would you even care? In less than 4 yrs it will be someone else's problem.

[thecrazyone]

It's still making the news:

https://www.axios.com/trillion-dollar-p ... 181de.html

[68Camaro]

Why now? The socialists that are actively and now openly working to take down the Republic are pulling on every lever they can, and they are succeeding. This path allows them to print and spend as much as they want. This is necessary to allow them to continue to seed our federal level of government with a minefield of policy and funding traps that have the objective of ensuring their continued power. They are passing out money like drugs to the masses as well as flooding the country with immigrants who will be beholden to their money, all while removing election integrity. If their process succeeds we will have lost the Republic. Perhaps it is lost already (some believe that). Others are still fighting.

If the socialists succeed in gaining control, the question will remain whether they can retain control themselves, because behind this all - ultimately - are the globalist oligarchs who will only allow the socialists to retain "power" as long as they do their bidding.

[NiBullionCu]

Not a new idea at all.

was bandied about a bunch in 2011. (articles mention a blogger 'beowulf' who first suggested it in 2010.)

http://neweconomicperspectives.org/2011/07/coin-seigniorage-legal-alternative-and.html

https://wallstreetpit.com/80636-coin-seigniorage-and-inflation/

Congress provided the authority, in legislation passed in 1996, for the US Mint to create platinum bullion or proof platinum coins with arbitrary fiat face value having no relationship to the value of the platinum used in these coins. These coins are legal tender. So, when the Mint deposits them in its Public Enterprise Fund account at the Fed, the Fed must credit that account with the face value of these coins. This difference between the Mint’s costs in producing the coins and the credit provided by the Fed is the US Mint’s profit. The US code also provides for the Treasury to periodically “sweep” the Mint’s account at the Federal Reserve Bank for profits earned from these coins. Coin seigniorage is just the profits from these coins, which are then booked as miscellaneous receipts (revenue) to the Treasury and go into the Treasury General Account (TGA), narrowing the revenue gap between spending and tax revenues. Platinum coins with huge face values e.g. $2 Trillion, could close the revenue gap entirely, and technically end deficit spending, while still retaining the gap between tax revenues and spending.

An interesting loophole that has not been closed.