Obama Coin & Impact on US

[Dean Cain]

You all have heard about the Obama trillion dollar coin by now. Yes Paul Krugman's magical pill that will stave off our bloated federal deficits by the power of platinum. http://krugman.blogs.nytimes.com/

 

The bottom line is this we spend more than we take in. The solution is to quote Bill Clinton "arithmetic".

 

So taking this into consideration we can either choose the easy way out of balancing the budget via the Krugman Obama trillion dollar coin or by taxing & wise spending cuts.

 

The most upsetting in all of this is the W Bush & Obama, Federal Reserve $13 trillion giveaway to the "too big to fail" banks that became even bigger. http://mobile.bloomberg.com/news/2011-11-28/secret-fed-loans-undisclosed-to-congress-gave-banks-13-billion-in-income.html. When the Federal Reserve printed money out of thin air to cover Wall Street losses mainly on commercial paper, they essentially printed 13 trillion dollar Obama coins or virtually 1 years entire US GDP & 1/8 of all private & public sector US debt.

 

What the Neoliberal Krugman wants is this; Treasury to mint a trillion coin and than deposit in the Federal Reserve to pay the bills we've already racked up, printing even more money & creating even more debt. The fact that our government is unable to balance the budget is a major flaw to our supposed "Free Market" system.

 

This 1 trillion dollar coin must be stopped. We must balance our budget by cutting bloated non-essential defense spending and then tackling our bloated social entitlements of Medicare, Social Security & Medicaid.

 

I am all for the Federal Reserve propping up too big to fail banks who are the JOB CREATORS, hello?!

But I draw the line when the government thinks it can create money from thin air to pay it's bills. Ultimately all this money printing will debase our currency to the point that inflation takes away any wage increases that result.

 

So to recap; the 13 trillion to bail out Wall Street? Okay because it save the private sector. But the 1trillion coin to cover our deficit which is mainly money we owe ourselves back via entitlements? Come on!

 

I am Fed Up with paying Taxes; TEA = taxed enough already!

And I am really upset the Federal Reserve is printing money (causing inflation) & hurting me the responsible saver, but I can live with this because most of my wealth is bonds, paper & real estate which needs to be stabilized.

 

We are all doomed!

[TakeYouToTasker]

So, the Keynesian braintrust is looking to inflate our way out of debt?

 

Why, whoever could have forseen that eventuality. Perhaps his name is Alice, or Mohammed.

[Gary M]

To quote a great America "Stupid is as stupid does"

[B-Man]

MEGAN MCARDLE not buying this whole “platinum coin” idea.

The Great Platinum Coin Caper is everything that is wrong with Washington: a stupid partisan maneuver that erodes the institutions of our government for no gain other than an immediate political win. The only good thing that can be said about it is that the President seems to be too sensible to actually consider doing it. Nonetheless, the fact that intelligent people like Professor Krugman are even discussing this debacle, much less endorsing it, is a depressing reminder of just how nasty and short-sighted our nation’s capital has become.

When I was reporting on Wall Street, I used to be told with some regularity that government was needed to counteract the short-term thinking of the business sector, who never thought much beyond the next quarterly earnings report. This now seems as quaintly adorable as picture hats and daily milk deliveries. An ADHD day trader with a cocaine habit and six months to live has considerably more long-term planning skills than our current congress.

I actually kind of hope they try this, just for the clarity it would bring. The Obama Presidency, it seems is all about clarity.

 

http://pjmedia.com/instapundit/161168/

 

 

 

 

 

 

 

ANN ALTHOUSE ON ................................THE TRILLION-DOLLAR COIN IDEA:

 

“It’s strange that it’s come to this, but I don’t believe the President of the United States would choose to do something that will strike the people as so bizarre, even if he feels capable of articulating the legal theory with a straight face. The President must maintain the people’s trust and confidence. He must be comprehensible as normal, sound, and sane to ordinary folks.”

 

 

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[TPS]

It's certainly not Krugman's idea. This has been debated on various blogs for the past year (one of the earliest to discuss the idea is Cullen Roche at Pragmatic Capitalism). It's only now going mainstream. It's a way to circumvent the stupid Congress-imposed debt ceiling.

[Dean Cain]

What Obama and his Neoliberal economic policies are advocating is a return to a retrogression towards medieval substance type of economies for the middle & upper middle class. With the overall goal of stripping wealth from the wealthy. If they cannot tax our money away, they will simply inflate our currency into oblivion. In 1972 a Camaro was $3,500. In 2013 that same Camaro is $22,500 to $55,000 depending on horsepower.

 

Obama & Bush W before him were mere puppets of Wall Street. Wall Street picks the winners. Goldman Sachs is Obama's largest campaign financier. The Federal Reserve run by former executives at Goldman Sachs also known as Government Sachs, had no problems printing $13 trillion to save them on their CDOs, & MBSs gambles. Goldman Sachs directed the Federal Reserve to make Lehman Brothers the sacrificial lamb of the 2008 collapse.

 

But the $1 trillion coin which will essentially be minted 2 times per year is ludicrous. When China & other foreign creditors come calling for their investments after they realize the US is one giant ponzi scheme, they will soon require us to pay them back by buying their debt. Imagine when all $hite hits the fan when we can't pay and China nationalizes all the U.S. multi-nationals manufacturing in China.

 

In short we need to draft legislation to end the platinum coin that can legally be minted thus circumventing Congress. Tyranny in the form of any "tion" either, taxation or inflation must be stopped.

[Magox]

It's certainly not Krugman's idea. This has been debated on various blogs for the past year (one of the earliest to discuss the idea is Cullen Roche at Pragmatic Capitalism). It's only now going mainstream. It's a way to circumvent the stupid Congress-imposed debt ceiling.

Wasn't his "idea", but he's certainly endorsing it. Aren't you a fan of Krugman?

[TPS]

 

Wasn't his "idea", but he's certainly endorsing it. Aren't you a fan of Krugman?

I am a fan of the new post-crisis Krugman, and I know he's endorsing it. The idea is to circumvent and "man-made" constraint, and it in now way is any more inflationary than if Congress raises the ceiling. Go ask Alice.

[TakeYouToTasker]

I am a fan of the new post-crisis Krugman, and I know he's endorsing it. The idea is to circumvent and "man-made" constraint, and it in now way is any more inflationary than if Congress raises the ceiling. Go ask Alice.

[Magox]

and it in now way is any more inflationary than if Congress raises the ceiling. Go ask Alice.

[B-Man]

 

 

Don't you have anything smaller TYTT ?

 

I don't have change for anything over a trillion......................................

[meazza]

I am a fan of the new post-crisis Krugman, and I know he's endorsing it. The idea is to circumvent and "man-made" constraint, and it in now way is any more inflationary than if Congress raises the ceiling. Go ask Alice.

 

I dislike Krugman less for his policies but more because he's just so damn douchey with that "starving artist beard."

[ExiledInIllinois]

In 1972 a Camaro was $3,500. In 2013 that same Camaro is $22,500 to $55,000 depending on horsepower.

 

I don't know why people use vehicles as an example. Cars are extremely cheap today w/respect to what you get! Of course, there are more high-end models available. Don't let those high-end models and plethora of choice skew the argument. That 1972 Camaro was an unsafe piece of poo! It was basic bag of bolts that should have cost no more than 800 bucks, new, back in 1972. Many common people are easily making 10 times that 3,500 bucks. A nice conservative, safe ride will easily get you 100,000 miles with barely a lick of maintenance! What is that 1972 Chevy, way overpriced @ 3,500 bucks, bag of low tech bolts gonna get you before it craps out due to lack of maintenance?

 

The thing is, we have so much more of the pie to spend our cash on on. More choice. Go back to basics and that 22,500 car note would seem like a walk in the park.

[Dean Cain]

I don't know why people use vehicles as an example. Cars are extremely cheap today w/respect to what you get! Of course, there are more high-end models available. Don't let those high-end models and plethora of choice skew the argument. That 1972 Camaro was an unsafe piece of poo! It was basic bag of bolts that should have cost no more than 800 bucks, new, back in 1972. Many common people are easily making 10 times that 3,500 bucks. A nice conservative, safe ride will easily get you 100,000 miles with barely a lick of maintenance! What is that 1972 Chevy, way overpriced @ 3,500 bucks, bag of low tech bolts gonna get you before it craps out due to lack of maintenance?

 

The thing is, we have so much more of the pie to spend our cash on on. More choice. Go back to basics and that 22,500 car note would seem like a walk in the park.

 

Would you prefer the cost of commodities like a barrel of oil, gold or silver?

[TakeYouToTasker]

I don't know why people use vehicles as an example. Cars are extremely cheap today w/respect to what you get! Of course, there are more high-end models available. Don't let those high-end models and plethora of choice skew the argument. That 1972 Camaro was an unsafe piece of poo! It was basic bag of bolts that should have cost no more than 800 bucks, new, back in 1972. Many common people are easily making 10 times that 3,500 bucks. A nice conservative, safe ride will easily get you 100,000 miles with barely a lick of maintenance! What is that 1972 Chevy, way overpriced @ 3,500 bucks, bag of low tech bolts gonna get you before it craps out due to lack of maintenance?

 

The thing is, we have so much more of the pie to spend our cash on on. More choice. Go back to basics and that 22,500 car note would seem like a walk in the park.

Despite an increase in the production of both beef and grain over the last 43 years, and a vibrant and growing fast food market putting downward pressure on prices, the cost of a McDonald's hamburger in 1970 was 28 cents, today it costs one dollar.

[IDBillzFan]

You'd think progressives would just push for a $200,000 coin so it would be easier for them to point at all the rich people who haven't paid their fare share.

[TPS]

Rather than me rehashing the issues that have been discussed on various blogs, here's a summary by Roche:

http://pragcap.com/explaining-the-silliness-of-the-debt-ceiling-and-platinum-coin-to-the-rest-of-the-world

 

It's pretty clear most people totally misunderstand the concept of using this as a strategy to circumvent the debt ceiling.

I'd suggest that Tasker (and Magox) read his views on hyperinflation too...

[IDBillzFan]

Rather than me rehashing the issues that have been discussed on various blogs, here's a summary by Roche:

http://pragcap.com/e...st-of-the-world

 

It's pretty clear most people totally misunderstand the concept of using this as a strategy to circumvent the debt ceiling.

I'd suggest that Tasker (and Magox) read his views on hyperinflation too...

 

In a nutshell:

 

It’s sad that this is the current state of affairs in American politics. The fact that we’re fighting stupid ideas with stupider ideas would be funny if it wasn’t so sad.

[Magox]

Rather than me rehashing the issues that have been discussed on various blogs, here's a summary by Roche:

http://pragcap.com/e...st-of-the-world

 

It's pretty clear most people totally misunderstand the concept of using this as a strategy to circumvent the debt ceiling.

I'd suggest that Tasker (and Magox) read his views on hyperinflation too...

 

That was an incredibly retarded explanation by Roche.

 

Also, I never said that this monetary policy would lead to hyperinflation, what I said is that it could, that because of the slack in our economy, we wouldn't see tremendously high inflation until that slack disappear. Also, we are seeing higher inflation, food and gas prices went up dramatically after the announcement of QE.

[Magox]

I've got a great idea, why don't we just produce about 16 of these coins, wipe out our debt in its entirety, print some money, and just pay back our foreign creditors with the printed money... I mean, it's not "spending", so naturally if it isn't new spending, there can't be any negative inflationary ramifications to making this decision.

Edited January 9, 2013 by Magox