| Author |
 Replies: 21 / Views: 2,743 |
Page 2 of 2
|
|
|
|
CCF Master Historian of USA Commemoratives
 United States
12293 Posts |
A re-hash of an idea floated in 2010-2011 when the US Congress was also wrestling with debt ceiling issues.
What goes around, comes around...
Collecting history one coin or medal at a time! (c) commems. All rights reserved.
|
|
Pillar of the Community
United States
3652 Posts |
As commems mentioned, this same idea has come up before in a similar situation. Lots of question on the legality or constitutionality of trying such a thing, even if it could possibly be less damaging to the economy than defaulting. I would fully expect the debt ceiling will ultimately be raised which would make this all moot, but only time will tell.
Member of SPMC, FCCB, ANA and ANS. My U.S. Classic Commemorative Complete Set: https://www.NGCcoin.com/registry/co...sets/278741/My U.S. Fractional Note Set: https://notes.www.collectors-societ...eSetID=34188 |
|
Moderator
Australia
16849 Posts |
And all the talk about "coins" is because the whole point is seeking a way to create extra money without needing to go through Congress. They can't print a trillion dollar Federal Reserve Note. Section 16.8 of the Federal Reserve Act restricts the possible denominations the Fed is allowed to issue. And $10000 is the highest denomination currently allowed under the Act. They'd need to print 100 million $10000 notes, which might take a while - the BEP can only print 10 million notes per day. They can't print a trillion dollar United States Note either, as the total face value of such notes is likewise capped by Congress at $346,681,016 - way under the trillion dollar target, even if all other United States Notes suddenly ceased to exist. Nor can they set up any other authority to issue a trillion dollar banknote without Congressional approval. Congress normally needs to approve new coinage designs too. But there is one exception: platinum coins, which have been given specific exemption from requirement for Congressional approval of denomination and design. 31 US Code 5112, paragraph (k). So, with the Secretary of the Treasury's approval, the Mint can indeed lawfully strike trillion dollar coins, on demand, with minimal delay and zero requirement for Congressional approval. The only qualifier is that any such coins must be made of platinum. Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
|
|
Pillar of the Community
 United States
1913 Posts |
Sap, thanks for the additional information. That was very educational.
The one thing that's missing with this idea is who would supply the money to buy the coin. The mint doesn't just manufacture coins and throw them out in the economy. As I understand the way it typically works, a bank pays money to the mint and in return receives that same amount back in coinage. So the bank will end up with just as much as they sent but just in a different form of money. Meanwhile, the mint's profit is the amount of money that they received from the bank minus the cost to produce the coinage. In the case of the trillion dollar coin, who would pay the trillion dollars to the mint?
Edited by Bret
10/05/2021 10:22 pm
|
|
Valued Member
United States
292 Posts |
Quote:
In the case of the trillion dollar coin, who would pay the trillion dollars to the mint? The platinum $1T coin itself is only $1545, but the overnight shipping will be $999,999,998,455. |
|
Valued Member
United States
88 Posts |
This is just stupid on so many levels.
|
|
Rest in Peace
United States
2668 Posts |
...and brilliant in a couple.
|
|
Bedrock of the Community
Australia
21788 Posts |
I could write
'One Trillion Dollars' on a sheet of toilet paper.
I am sure that is someone out there would be able to use it.
Probably already happened with Zimbabwean One Trillion Dollar Notes.
Perhaps a more rational suggestion:
For silver stackers, a One Trillion Dollar coin could be produced as a silver round.
|
|
Moderator
United States
189222 Posts |
Quote:
The platinum $1T coin itself is only $1545, but the overnight shipping will be $999,999,998,455.  Quote:
The one thing that's missing with this idea is who would supply the money to buy the coin... No one has to buy it. The USA mints the coin and deposits it in the FED bank and the USA account balance is instantly $1 Trillion higher. It is really that simple. |
|
Pillar of the Community
United States
1913 Posts |
If the mint just made it and shipped it to the Fed bank, to my knowledge that would be the first time they've shipped coinage without receiving a payment for >= the amount shipped. That would be absolutely no different than just printing money.
|
|
Moderator
United States
189222 Posts |
That is because usually the Mint only ships coins to the Fed when they ask for them, that is when they are bought. This is different in that it is a deposit into the USA account at the FED. Not saying I like it and I am not going to argue why it is not the same as printing money because, well, if it walks like a duck...  |
|
Bedrock of the Community
United States
10038 Posts |
So very sad. A return to the problems we had not long ago. And really, how does it help?
Again its based on just accepting the coin is worth that much. Its artificial like all our non PM based money.
Must be nice to be a position (or actually think you are!) where all your problems are taken care of by simply wishing it so and then making it "lawful."
How much squash could a Sasquatch squash if a Sasquatch would squash squash? Download and read: Grading the graders Costly TPG ineptitude and No FG Kennedy halveshttps://ln5.sync.com/dl/7ca91bdd0/w...i3b-rbj9fir2 |
|
Pillar of the Community
United States
850 Posts |
The Obama administration talked about this and went with Platinum as it didnt have restrictions from congress like gold and silver does. Is it an idea, Yes. Will it work... Nope as then our current money will decrease as inflation increases. Zimbabwe did the same thing and ran their currency into the ground. Imagine if they printed and released 27 Trillion extra dollars into circulation. Imagine how many bills you would need to buy bread or eggs. What used to cost you a single dollar now cost you a stack of them. I work at a bank and I had a customer seriously try to deposit a few of these novelty Trillion dollar coins that you can get from ebay for $5 from shipping. He started arguing that the US Mint made a trillion dollar coin and that he not only has one of them but THREE  and that on the back side it said that it was 9999 Platinum. I had to explain how the US never had any currency that high and that its probably fake. Eventually he brought it in and wanted to deposit it, that is when I took my name badge and used the magnet to pick up the coins. Basically it was not platinum. He also brought some gemstones, a huge foreign currency collection in holders, and fake looking gold bars to deposit. I had to explain the bank doesn't take these as payments but told him where he could take them to get cash. I asked him where he got those Trillion dollar coins at, and he said he bought them for $50 in the hood... After he left I quickly called those few business close by to let them know that a potentially stolen gold/currency/gems collection may be coming towards them. This thread reminded me of this...  |
|
Bedrock of the Community
United States
19197 Posts |
Would be cool to just get back to honest bartering--goats, chickens, bushels of rice, nails, tires, etc.
|
|
Bedrock of the Community
Australia
21788 Posts |
Due to lots of countries getting into debt most economists are suggesting that there will be harder times ahead. The kindest and most politically expedient way to lessen the impact of harder times is to suppress wages growth as much as possible, increase the money supply, and tolerate higher inflation rates.
It seems to me that we already have this situation, but it could get far worse.
I have too much in cash in my super fund just now.
I am currently loosing about 2% to 3% against inflation on the cash investment within the fund.
No one knows exactly when there will be a stock market crash, but most economists are predicting it will come. I am hoping sooner than later, because I am loosing too much on the cash component due to inflation.
After the crash, I will convert a large part of the cash component into shares. I haven't a clue on which shares to pick, so I will probably invest in a share market index fund.
|
|
Page 2 of 2
|
Replies: 21 / Views: 2,743 |
Page 2 of 2
|
First Page
Posted 10/05/2021 7:16 pm
